> Does it?
No, it doesn't. You're throwing up a spectre. This are pretty easy numbers to come by. The point in this one example being vertical scaling options are pretty constrained on something designed to really only effectively scale cores and RAM.
> That's a stretch. Especially the "cheaply" part.
All this is a straw man. I really have a hard time believing "I don't firmly fall on either side of the debate". In fact, I call BS.
Who actually has to wire their own PDUs unless they want to? Or is forced to buy cages, racks, etc?
If you want to I suppose you can, but I haven't hit a Tier 1 data-center where that's even an option. Unless you were to buy an unfurnished cage perhaps on the terms you got to hire your own people for the build out.
Otherwise, for most deployments, even for something like Reddit, you're talking about stacking a couple 48 port switches, racking a few servers, and making sure you don't screw up airflow with bad cabling. Just spend $500 on an experienced cable guy to wire it up. Cabling isn't the most fun.
Staffing costs are a drop in the bucket. Racking a couple dozen systems, configuring your ports is pretty trivial.
If you have a business with dependable positive cash flow affording you the luxury of signing a three year hardware lease, it doesn't make cash sense to do anything else for 99% of deployments.
The "core competency" stuff is just a salve for developers who want to live in a homogenous environment. Life gets easier with a competent IT person. Not harder. You still have to monitor processes, setup syslog servers, archive logs, monitor disk space, load, available RAM, bandwidth, trace down abusers, setup mail servers for at least internal monitoring, create backup procedures, automate deployments, figure out how to compile some old library.
All of this stuff is where your IT staff effort goes. Not in the once-in-a-blue-moon-we-have-to-rack-some-servers tasks. You aren't better off because Amazon is handling your power requirements instead of a good colo. Those things are details you never have to think about either way. Saying so is a definite straw-man.