You're paying for the entire infrastructure is why. It really only saves on upfront cost. A dedicated server, Windows Server + SQL Server Web will run you, at least $5K. Performance wise, a dedicated server at a colo center will be a lot cheaper to run once you get the hardware. I know, I've switched several companies off of Azure and, instead of paying $2500/mo, they pay $200/mo (after the server) for 4U at a colo + $100/mo basic maintenance and 1TB/mo bandwidth, so it adds up. For example, I built 2 custom 1U servers (12 core/32GB) for $8500 and an opensource router for another $500 (pfSense), including OSes & SQL Server Web. Initial setup of both servers including SQL and the router for 16 IP Addresses was about $1K. Total cost was $10K up front. The equivalent horsepower and storage from Azure was $2500/mo. In 1 year on Azure it ran $30K! 1 year on colo (hosting + maintenance) was $13600, the following year was $3600. So far in 5 years, they saved ~$122,000. There was only 15mins of downtime during the entire period. Cloud hosting is a great idea, but it will never save you time nor money at the rates these company's charge. As far as downtime, I have been hosting for 2 decades and the worst downtime happened due to a network failure (that also took out multiple cloud providers) and it was 13 hours. The only other one was due to a fried router (about 3 hours). Just my take on it - Cloud hosting is still way too expensive for what you actually get & redundancy is nice but you can buy a new server every 2 months for the price difference (just get good equipment w/redundant power supplies and hot swap drives - in a 55 degree colo center, failures are rare)