That is silly for two reasons:
1. Cloud doesn't save you from outages
2. Outages happen, and are usually very rare, whatever your host
That said, I have fewer outages on my machines than AWS has on theirs. I run a service for a client, on one server, that has had 100% uptime during workdays for 7 years.
It gets even better (or worse, depending on your view point) if you factor in services you're dependent on. In my career I probably had more outages due external partners running their stuff on AWS than I ever did because our own servers where down.
That's not to say that AWS is bad, but it take a very skilled administrator to do AWS correct, and it costs a lot of money to get the required redundancy. The whole "I can't vacuum because US-EAST-1 is down" is because someone didn't want to pay what it costs to do redundancy in AWS.
Seems a little pointless to pay a premium on everything else then.
I've had far less downtime (read: zero) from my custom power redundancy solutions on my homelab than from power issues with my colo provider.
Small companies would be far better off with local power redundancy than some gargantuan complex industrial Liebert solution with a 4 hour SLA.
Add to this, that you can have outages due to operational complexity, which tends to happen in complex cloud native setups.