Neranja
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If you pay 100 to 200k for AWS a year you are on the smaller side and can most likely survive if Jeff wants a new yacht.Everything has tradeoffs. The cost of doing a truly standalone system are way too much comparing it to doing it ourselves or paying licenses for our stuff.
The department I work for buys at least a million dollars worth of server hardware every year, and it's one of the smaller ones in the company. Also, they have lots of red tape if data has to leave the company in any form, so cloud providers have to be certified by their IT security department. Last time I was involved in someone trying this "cloud" thing they went "LOL NOPE!", and that was it.