Depending on what they're hosting, it could still be cheaper. My company wants to move a bunch of our old "tech debt" servers to AWS from the physical rack they're in now. The estimated AWS cost for that hosting is about the same as replacing 1/6 of the entire server infrastructure every month. There is no sound fiscal reason for us to do that, and probably likewise for many others, but Amazon is a nice, big famous company that makes an excellent scapegoat for bad planning, I guess.