Blame finance and accounting... Rent compute in the cloud can be immediately expensed against revenues. Purchasing equipment has to be depreciated over a few years. Also why spending $$$$$ on labor (salaries) to solve an ops issue rather than spending $$$$ on some software to do it happens. If the business relies on the software it looks like an ever ongoing cost of operating the business. Spending more on labor to juggle the craziness can "hide" that and make the business look more attractive to investors... Cutting labor costs is easier to improve the bottom line (in the short term).