It is statistically far more likely that your cloud service will go down for hours or days, and you will have no recourse and will just have to wait till AWS manage to resolve it.
I suspect that this is really about liability. When AWS goes down you can just throw up your hands, everyone's in the same boat. If your own server goes down you worry that your customers doubt your competence.
It's actually kinda frustrating - as an industry we're accepting worse outcomes due to misperceptions. That's how the free market goes sometimes.
Nobody gets fired for hiring IBM. This is the new version, when you go down because AWS did its someone else’s fault. Of course AWS will compare their downtime to industry standards for on premise and conclude they are down less often. On Premise engineers can say until they are blue that their downtime is on a Sunday at 3 am because it doesn't impact their customers it doesn't seem to matter.
On the other hand when Google mail gies down, I am happy to be in yhe same boat as 2 B people, waiting for the page to refresh.
As opposed to be with the small provider round the corner who is currently having a beer and will look at that tomorrow morning.
Now - I am in the phase where I ap seriously considering to move my email from Google to a small player in Europe (still not sure who) so this is what may ultimately be my fate :)
I guess you sip coffee, watch true crime on yt and tell everyone there is a global outage while aws us-east-1 fixes it compared to burning the midnight oil when you are the one fixing it. Totally worth paying 10x when that happens.
If youe admin isn't competant enough to setup logging or notifications, how is it going to be better when your Cloud VM runs out of storage or doesn't reboot properly due to AWS swapping out hardware?