If however you're using the cloud as intended, and using all of the services it actually provides, I highly doubt you could run 23 data centers around the world with databases and firewalls and streaming logging and all they other stuff they provide at even a fraction of the cost.
Yes, it's bad that apparently all of the regions failed. Google will hear about it. People will get in trouble. But a screw up at this level is rare. If you use cloud, or even a VPS provider like Linode, you get auto-fail over and someone that is contractually obligated to deal with failures.
Cloud complexity is also lower because you don't have to worry about power, cooling, upstream connectivity, capacity budgeting, etc. If 99.9-99.95% availability is fine for your application then you probably don't have to worry about your provider either.
I hate to feed a troll, but ...
Noisy neighbors are a problem all the way from sharing a server using VMS to top of rack switches.
An if you try hard enough, you can always escape your VM and "read somebody else's mail."