I assume that in the real world you grow your own food, generate your own electricity, dig up your own wells for water, and knit your own clothes? Companies have to rely on other companies for critical services, just like we do in the real world.
Any usage kf SaaS would require a solid contract in place and a plan B (and C, and D, etc) to reach even a fraction the reliability of e.g electricity or food.
Choosing the potential downtime is not a failure, if you considered your options.
Electricity and water are heavily regulated and often government owned, not run by Silicon Valley cowboys.
My food supply is a self organising network that can route around any single point of failure. This is about as far removed from SaaS as you can get.
Yet, you still get Puerto Rico (electricity grid recovery failures of a few levels), and Flint (no clean water for you, because no).