Think about it this way:
1) Can you make your on prem infrastructure go down less than Amazon's?
2) Is it worth it?
In my experience most people grossly underestimate how expensive it is to create reliable infrastructure and at the same time overestimate how important it is for their services to run uninterrupted.
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EDIT: I am not arguing you shouldn't build your more reliable infrastructure. AWS is just a point on a spectrum of possible compromises between cost and reliability. It might not be right for you. If it is too expensive -- go for cheaper options with less reliability.
If it is too unreliable -- go build your own yourself, but make sure you are not making huge mistake because you may not understand what it actually costs to build to AWSs level.
For example, personally, not having to focus on infra reliability makes it possible for me to focus on other things that are more important to my company. Do I care about outages? Of course I do, but I understand doing this better than AWS has would cost me huge amount of focus on something that is not core goal of what we are doing. I would rather spend that time thinking how to hire/retain better people and how to make my product better.
And adding all that complexity of running this infra to my company would cause entire organisation be less flexible, which is also a cost.
So you can't look at cost of running the infra like a bill of materials for parts and services.
And if there is an outage it is good to know there is huge organisation there trying to fix it while my small organisation can focus preparing for what to do when it comes back up.