Even with the specs you mentioned, you can rent a lightsail server that is comparable on AWS for like 80 usd a month, so I would push back against the idea that using cloud services in pretty much any scenario is a purely technical decision.
Part of the context of discussing things this way is the original article: do the prevalence of service companies signal the end of big tech? I would say no, because the only way to not be reliant cloud service providers is to do what you describe and compete directly with their infrastructure services by forming your own technical infrastructure. But the logical conclusion to doing things this way is that eventually whoever can control more physical infrastructure has an advantage. What if Amazon is able to replicate your service offerings? They would be able to immediately able to offer their version using their cloud services at a fraction of the price because they can amoratize the cost of computing over their cloud business. Then, when they have eliminated you as competition, they can recoup everything by increasing the price. This is a HUGE anti-trust concern, and one that all tech companies should be at least a little bit concerned about in the long term. It doesn't go away because you can have an (in your case more expensive than lightsail) up front investment to own your companies computing resources.
Give me an AWS service with predictable billing and ability to put hard limits so you don't have your credit card charged for surprising amounts if you get bursty unexpected loads, and I'll be all over them without thinking of on-prem hosting.
It would be a lot preferable for there to just be multiple computing resource providers, rather than just three, but the reality is that setting yourself up as a cloud provider is quite inaccessible. Democratizing the industry of cloud services will probably require regulation.
So it pays off to be wary of filter bubbles. The SV way of doing things assumes a ton of VC money to burn, something that, to this day, is still not a wide trend in the EU (even if it happens here and there).
Plus that company's setup is not unusual in any way per se; the only "unusual" thing is "we don't run to the cloud at the first IT problem". A ton of other companies are like this, I'd bet even in the US.
And we don't have the requirements of most big Silicon Valley companies that you reference. It boggles my mind why so many commenters IMMEDIATELY assumed we're a hyper-growth startup or whatever. We're an expanding data provider and our growth is super predictable, and our set of requirements changes like once a year.
So really, not sure why you and others keep repeating things I already agree with. The cloud wins from one point / scale and on, absolutely; otherwise it wouldn't ever take off. I am saying that people give up way too quickly and run to the cloud long before they need it -- that's all.