Earlier quoted context omitted.
What if the saw breaks, what if the person who knows how to use the saw leaves? There are good answers to these problems, but I find folks who find comfort in outsourcing assume it's easier for the downstream org solve them. Personal experience suggests it's often a false sense of security, and you often have to have your own experts anyway. Saw the same in software. We won't get budget to patch so let's outsource. T…
A lot of outsourcing decisions seem to be made on the premise of "what if it breaks?" It's a terrible fallacy. Your wafer saw (or server) that is utilized 1% of the time is going to need a lot less maintenance than a shared wafer saw that is used 16 hours a day. You will actually experience a lot less downtime by investing in your own wafer saw (or your own servers) rather than outsourcing (to a foundry or a cloud pr…
Analogy doesn't work; "in-sourcing" of previously-IaaS resources as a cost-cutting measure, is used almost exclusively for "base load" (vs. elastic load, which is the comparative advantage of IaaSes); and so your in-house servers are usually running pinned at 100%. So the hardware components will wear out just as fast, if not faster, than the IaaS's servers will; and when they do, your ops team won't have as many spare parts on hand as the IaaS does; nor the ability to live-migrate the enforced VM to another exactly-equivalent substrate host in the fleet (which was already warm) to avoid downtime altogether.
Also, apart from that, there are economies of scale in reliability. Your in-house backups are probably just a ZFS pool or a RAID5+1 array or something. They're certainly not hosted within a 17+-copies Dynamo-ish system, the way most IaaS object storage (incl. archival storage) is, because the costs of doing that in-house are ridiculous.