Getting hard assets is a core part of business in basically every industry, so I found it strange to claim that it was some major obstacle just because it happened to be servers instead of trucks or factory equipment.
Of course since then things have improved and you can now expect your sever to be provisioned within minutes, along with a nice dashboard to manage it. It's a bit more involved if you want to build your own server and put it in colocation somewhere, mostly because that involves being physically present.
Edit: Actually I remember using actual cloud provider back in 2008 - it was called Virtualmaster, one of the first cloud providers in central EU. They offered a free (!) VPS with 256 MB RAM and 1/4 CPU - I had a minimalist Debian image that allowed me to run full LAMP stack on it and an IRC client in tmux session.
Another cool central EU provider was 4smart. Their offering used to be that you only paid for resources you actually used - but for VMs. If you consumed only 10MB RAM, you only paid for that. I had servers cheaper than 1 EUR/month running continuosly with their own IPv4 there. They changed the pricing structure after few years.