Earlier quoted context omitted.
Just because you can't do it doesn't make it impossible. A small team of 4-5 good ops people can scale a network of many thousand nodes, petabytes of storage, and terabits of network throughput. Tech stuff isn't hard. The biggest problem is the lack of capacity planning and project communication in tech today. Nimble startup is a euphemism for pure anarchy and chaos. No one wants to plan anything any more.
The same infra could be managed by a single guy if it were in the cloud.
Cloud services are not efficient or cheap, they're convenient for the unprepared and haphazard management style that VC's love.