Managing on prem is definitely harder because you are benefiting from the economics of scale of all the management problems that you have to pay yourself, and if you don't have scale then you will be significantly overpaying to get the same type of quality, reliability, or responsiveness.
Most people are not paid to manage infra, they are paid to talk to customers, ship features, fix bugs, and other "core business" items; just like most businesses don't build roads, they pay taxes and utilize them because the cost of doing it themselves for their preferred traffic patterns would be much more than they could justify (for now.)
If you don't have scale, you don't need most of the features. Fire up PC, load application. Setup egress port open to internet. Setup application backup on cron job. Done until scale problems arise.
Correct, my point absolutely doesn't apply to someone who is just doing their thing, even maybe 2 orders of magnitude more stuff than their thing.
But when your local IT goon says its going to be 8 months to procure the next set of hard drives for your next order of magnitude, it's a real problem and you have real money to invest in solving it, just not owning a data center money.
Most people are not paid to manage infra, they are paid to talk to customers, ship features, fix bugs, and other "core business" items; just like most businesses don't build roads, they pay taxes and utilize them because the cost of doing it themselves for their preferred traffic patterns would be much more than they could justify (for now.)