Software for bare metal is catching up - you can buy couple of dedicated servers, install something like Kubernetes and will be shaking your head in disbelief how much you over paid for AWS.
Until you need to add another server, or 10 or 100... Not to mention it's another set of skills you need to have. It's a tradeoff. (I'm not talking about "we may need 100 servers next year because we'll have all this traction by then" -- I'm talking about "our load is growing at 1.5x every month or next month we need X capacity") I just finished booting up two new clusters with 5 and 15 nodes, respectively and cycled…
I can't wait until the day that we mature as an industry enough to consider running any kind of baseline workload on EC2 negligent.