My Boss is smart and he'd wonder what the business plan would be should say 5 years down the line you want to move away from the cloud for some reason.
You threw away decades of accumulated knowledge about the company and it's systems to save some money upfront.
He thinks on a longer scope than most bosses I've known though (largely because his family own the group so he doesn't have to answer to shareholders).
I'd be wary about how the real world actually deals with that, but there is no lack of large companies jumping on short term costs cuts without looking at the risks.
Really? People incentivised into looking for your best interests vs. a managed organization incentivised into dissolving your contract and gaining on average. I can't imagine anything that could create more different risks.
What people seem to do all the time is looking at an SLA and believing the real world must behave the way things are on paper; because there's a signature there. People do this even after being recently burned by the same partner. Some people have the same trust for in house staff, but the usual on high management is to have the exact opposite bias.
When we're talking about an entire ecosystem going away, the new one has to have almost 100% adoption. Windows desktop is going to exist for a really long time, especially when everyone else is giving up on desktops.
And yes, companies are entirely moving their systems and data. Salesforce runs their sales team. Oracle and SAP runs their ERP and finance. And now AWS/Azure runs their IT infrastructure. They use email from Google or Microsoft, along with hundreds of other SaaS products used day to day by employees. New startups are even more invested and start using other vendors for every non-core activity from day one. This is what a strong global business ecosystem enables and is a massive advantage for everyone.
No, established enterprises (both private and government) are, in the real world, important customers for cloud offerings like Azure, GCP, and AWS.