The small 10-person company I work for was paying a lot of money for renting a few VMs from a company in Arizona. Several thousand dollars every month. It was an awful deal. Any of the big cloud providers would have been cheaper. However, the software engineers were not really infrastructure people and had limited interest in learning anything more than what they learned in college about computer programming. So, for them, this solution was already stretching the limits of their knowledge and understanding of things. I suspect this is the case with many organizations.
Cloud services are a good choice for such places.
For someone with even a basic understanding of networks and server systems, it is far cheaper, easier to host it yourself. One of the first things I did was kick the expensive service provider to the curb. Got us a gigabit fiber service at the office for about $300/month and a few good servers, backup UPS and a backup cellular connection. That was 5 years ago. It has been running rock solid since. And I don't touch anything. If they primary ever fails, we have a hot standby. Automated monitoring keeps tabs on everything. Almost nothing is manual. I am not a systems or network engineer but a software engineer. But, this is pretty basic stuff.
The best part for me is that I have a 10Gbps connection to all the servers.