Having started my career in hosting, I would suggest that this world is unlikely to come back except for exceptionally small applications with minimal business impact. What does self-hosting provide which end-end encryption does not?
Self-hosting means:
- Needing to know how to configure your linux host across firewalls, upgrades, backups.
- Negotiating contracts with network service providers. While verifying that you have the right kind of optic on the network line drop.
- Thinking through the order of operations on every remote hands request, and idiot proofing them so that no one accidentally unplugs your DB.
- Making sure that you have sufficient cold spares that a server loss doesn't nuke your business for 6-12 weeks depending on how the hardware manufacturers view your business.
- Building your own monitoring, notifications, and deployment tools using both open source and in-house tools.
- Building expertise in all of your custom tools.
- A 6-20 week lead time to provision a build server.
- Paying for all of your hardware for 3-5 years, regardless of whether you will actually need it.
- Over-provisioning memory or CPU to make up for the fact that you can't get hardware fast enough.
- Getting paged in the middle of the night because the hardware is over-provisioned and something gets overwhelmed or a physical machine died.
- Dealing with the fact that an overworked systems engineer or developer is never making any component the best. And everything you touch will just passably work.
- Everyone will have their own opinions on how something should be done, and every decision will have long term consequences. Get ready for physical vs virtual debates till the heat death of the universe.