1 - Totally agree.
2 - Price, I can have a couple of powerful dedicated servers for 150€ per month and make a solid database setup with replication and backups in there that can handle thousands of connections per minute while the same on AWS would cost me around 900€ per month.
3 - Again cost. The recovery time on a crash and the ability to quickly move(a couple of minutes) everything to another machine are priceless.
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