Can you honestly say that large monthly cloud bills are better than the initial large expense of hardware? Hardware costs once, monthly subscription (and unexpectedly large charges) are an eternal void that can never be satisfied.
I can't because not every situation is the same. But... for some it is a great trade off. Here are some reasons:
- A company might not have the staff to deal with a number of issues that cloud services provide
- This can avoid spending cash that might be useful elsewhere.
- It might avoid a loan which has its own ramifications.
- It might be to avoid licensing issues (or get out of an audit).
- It allows for easier expansion (or contraction).
- Many cloud contracts are designed to NOT have fluctuation in the price reducing the variable expenses.