As a developer I've put up with over-subscribed VMware clouds and I vastly prefer the Azure/AWS option.
Of course you can pay the cloud providers to deal with your companies bad planning. Thats what most do.
I also would never advocate for DC for everything. As a startup it likely makes no sense to run your own hardware and also likely doesnt make sense to run k8s also however one of those is completely acceptable. Once you get to more predictable growth owning your own hardware starts to look more attractive but most don’t know how to calculate it properly and finance likes to make it merky with capex and opex buckets.
I hear they might need to move it all to Azure soon!
Additionally as its put together over time if you actually had to re create the environment it would never work. I spent time automating recreating an environment and quickly stopped. Terraform is the illusion of infra as code and fails miserably at any scale.
Testing environment recreation is impossible at a certain scale. Try it when you have hundreds of people adding terraform code most of who only know how to copy and paste.
I'm not sure if you made that post as a joke or not...but you just described a certain San Francisco based startup that operates in the SPF/DKIM/DMARC space...
Which company (if you can say) were you describing?
IT has always had issues with people cargo cutting solutions without understanding the details, and the cloud is no different.
The last 5 years for me has been soul crushing as someone who actually enjoys managing datacenters. We have seen time and time again having your own DC leads to much better visibility and control on spending as well as lower cost. Not to mention the huge advantage when negotiating with cloud vendors if you are a mid size or up company.
So time and time again i have had to transition out of environments you can reason about into AWS and become a glorified support engineer but i guess thats what companies need now days. Someone who will read docs the other engineers dont want to and troubleshoot all the issues because AWS is so easy.
Im glad I got to learn how the “cloud” works though as i likely never would have been drawn to infra and programming in this day and age.