I worked on a somewhat well-known (at the time) product that used on-site hosting.
One of our biggest customer complaints was that we didn’t have a cloud hosted option. Many companies didn’t want to self-host. They’d happily pay a premium to not have to host it.
I think HN underestimates the demand for cloud hosted solutions. Companies don’t want to deal with self-hosted if they can pay someone else a monthly fee to do it.