The "value add" of AWS has never been what it can do or does. It has always appealed to weak/incompetent/sociopathic managers and execs desire to not have to deal with capable employees.

As far as they are concerned AWS is taking care of computing AND hiring for them.

I've never worked anywhere that at least some sort of power holder would instantly go to consultants or outsourcing rather than in house because they believe that if you work for the company you must be incompetent, dumb or below average. If you don't work for them you must be exceptional.