Earlier quoted context omitted.
Spread the risk? Smaller on prem and cloud / rented bare metal?
Nah, it's actually better to concentrate the risk in this case. If your app depends on a few 3rd party services -- SendGrid, Twilio, Okta and they're all hosted on different infra then congrats! You're gonna have issues when any one of them are down, yayyy. Also the marketing benefit can't be downplayed. If your postmortem is "AWS was having issues" then your execs and customers just accept that as the cost of doing…
In my experience, execs and customers don't treat an outage differently because AWS is at fault. Though the developers do often have the attitude that it's "someone else's problem", which can actually can make execs more worried than if the problem was well known and under the company's control.