Exactly. AWS proposition was much more alluring where compute was more expensive and it required yearly estimations and updates.

In times when one physical server can have 32, 64 or even 96 cores... you pack your own little datacenter right there and it's pretty cheap to simply overkill it, have one or two servers for redundancy and bye.

So many businesses will happily run from 4 core 10usd VPS (that would have been beefy server 20 years ago).