Those economies are for the cloud provider, not you. The cost to you is set at just less than their best guess at what you think self-hosting will cost you.
Cloud hosting only makes sense in a case that your capacity needs are changing rapidly and unpredictably, or the case where you’re so big that the cloud hosting company is effectively a department. Any other time it will almost certainly be cheaper to self host.
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This anecdote is the opposite of the ones I usually hear.
Economies of scale go in the other direction usually.
Those economies are for the cloud provider, not you. The cost to you is set at just less than their best guess at what you think self-hosting will cost you.
Cloud hosting only makes sense in a case that your capacity needs are changing rapidly and unpredictably, or the case where you’re so big that the cloud hosting company is effectively a department. Any other time it will almost certainly be cheaper to self host.