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@edgeworth in my experience, there still needs to be sysops / sres for both cases, and the frequency of failure, be it hardware or human error, seems the same.
I recently tried to pitch some old coworkers who run a few WordPress clients on this. They spend 30k/yr on cloud rental to get what could be supported on 10k/yr of owned and hosted hardware. I told them to pay me 10k/yr to manage it and keep the 10k/yr in savings. There's no way doing that would take more than 100hrs/yr of my time. I think those numbers are reasonable and scale to the favor of the company buying their own hardware and paying a sysadmin.