Exactly. Try telling your management to switch to DO or Linode, which is already the top spot for 2nd Tier Cloud Hosting. Who is there to take the risk of failing for saving that is in the grand scheme of things negligible.

AWS failed? Great you have half of the internet down as well to cover your ass. No one get the blame and everyone continue with their work.

Of course this depends on culture and regional reputation. For example you would have no problem if your Startup in France is using OVH.