I mean, aside from my current role in Amazon, my last several roles have been at Mozilla, OpenDNS/Cisco, and Fastly; each of those used a combination of cloud, colo and on-prem services, depending on use cases. All of them worked at scale.
I specifically said "if it is designed well", and that phrase does alot of heavy lifting in that sentence. It's not easy, and you don't always put your A-team on a project when the B or C team can get the job done.
The article outlines a case where a business saw a solid justification for moving to bare metal, and saved approximately 1-3 SDE (depending on market) salary in doing so.
That amount of money can be hugely meaningful in a bootstrapped business (for example, for one of the businesses my partner owns, saving that much money over COVID shut-downs meant keeping the business afloat rather than shuttering the business permanently).