You were able to do it, but what happens to them when you're not around? Does their team have the required experience to handle it? That's the difference in cost. It's like DYI - yes, if I have all the skills and experience I can do everything myself incredibly cheaply, but... I don't. So I gotta pay.
But if your team does have the skills and experience, it's definitely worth looking into.
I do think people deeply underestimate what can be achieved with a single (or two, if you need a standby) dedicated Linux server these days. A single server can easily go up to 2TB of RAM and 128+ cores. Long before you ever get to a scale where that's a limitation, you'll have more than enough resources to figure things out.