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Cloud doesn't automatically come with that stuff - you need to set up your own failovers, backups and monitoring. Also you still need to administer those servers.

Also, tying yourself exclusively to AWS services is not a good long term strategy because then you have vendor lock-in that's worse than being stuck with some old hardware.

If you don't need the scaling abilities of cloud, then it just doesn't justify the added expense because no matter what you say, you still need people to manage systems.

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