There are a lot of issues here. Most seem unclear in their presentation.

An interesting study, now that AWS and Azure are making headway, would be to learn how many in house people were displaced at the companies that went to the Cloud.

Marty Boos, formerly of Fingerhut, Digital River, and any number of Silicon valley businesses now, was one of the first people to spin up a Cloud service. That happened at Digital River. As I recall Toshiba lost their website and call center one morning, circa 1999, and called DR. Marty and his team had both up and running by that afternoon on some of his servers and calls were going through a local call place. take note, problem occurs in morning, resolution/remediation by afternoon....

The result was pretty well received. Not perfect. But it demonstrated the idea that complex tech can be spun up rapidly by people who really know their shit. It was not even their main intent, just a fringe benefit of their base skills.

In current cloud services or vendor managed services, you would be hard pressed to get a smart person on the phone before tomorrow and resolution of all but the most mundane things is a ways away if ever to be seen.

Now it is a business model. Talent is recruited, not always retained, and the product has some vulnerabilities. Let the buyer beware they say.

It becomes a self fulfilling prophecy of sorts. Tech is sent to the cloud. Tech talent locally withers. More tech goes to the cloud. The Data Lords of Amazon and Azure Rule the Universe. Larry Ellison dresses as a jester and serves as a footstool for Jeff Bezos....amen. ( though perhaps I digress)