There are options other than "put your entire infrastructure on Amazon" and "hire someone fulltime to manage your physical infrastructure".

Unless you have some truly massive amount of hardware (in which case it's _definitely_ cheaper to hire someone than pay Amazon), you can generally just set it up and forget about it save for periodic maintenance and emergencies.

So what you really need to pay for is the time of someone who can do these things for you and funnily enough, such a service exists. I believe it's common in the not-startup world: a managed services provider (MSP).

And in the end this really depends on what the business is actually doing. AWS is _really_ price inefficient but in particular for bandwidth. If you're doing anything bandwidth-heavy like video, images or backup, you want to keep the hell away from any kind of cloud.

It's a classic pre-mature optimization. Source: Guy who manages 'private cloud'

I don't think you quite appreciate how much (some) companies (including startups) spend on public clouds.