Mostly since the AWS craze started a decade ago, developers have gone away from Dedicated servers (which are actually cheaper, go figure), which is causing all this mess.
It's genuinely insane that many companies are designing a great amount of fallbacks... on the software level but almost none is thought on the hardware/infrastructure level, common-sense dictate that you should never host everything on a single provider.
Maintainance cost is the main issue for on-prem infra, nowadays add things like DDOS protection and/or scraping protection, which can require dedicated team or for your company to rely on some library or open source project that is not guaranteed to be maintained forever (unless you give them support, which i believe in)... Yeah I can understand why companies shift off of on-prem nowadays
While down times are not ideal, that's quite an impressive achievement to be able to resolve an incident of this scale in minutes - not hours.
[0]: https://updog.ai/status/cloudflare