The internet worked pretty well without Cloud. I reckon a good 90% of the businesses out there don't need cloud, and all that crap about capacity. The issue is that admin cost is very expensive. To get your own network pipe, have someone wire it up, setup your routers, firewall, do backups, etc. That costs tons of money. So even for a small business that can run fine of a raspberry pi, the knowledge to run onprem is so expensive that it's cheaper for them to pay $1000 a month and go to the cloud than pay network/sysadmin $50k a year.