https://www.stormondemand.com/servers/baremetal.html 32/64GB - $0.75/hr
https://www.linode.com/pricing 20/64GB - $.96/hr and bandwidth
http://aws.amazon.com/ec2/pricing/ 16/64GB - $1/hr + bandwidth costs @ [varies]
Even if you take your premise at face value, AWS is literally the most expensive option.
Personally, I've never seen a real world use case where you dropped below 33% capacity. In practice, you can get hourly billing for cheaper than AWS anyway with providers large enough to meet most customers needs.
Generally, with any given service as you can scale it makes sense to run your own instances.. but realistically someone who knows insert-tech better than AWS/Azure admins is a pretty rare breed, and having to in-source those specific skills costs in terms of time and money, redundancy even more so.
If you have a team of 3-5 people, you can do far more with AWS or Azure than you can most alternatives... Employees aren't free.