> And if each of your clients is in the Healthcare industry and dealing with end-user medical data? Or financial data?
Then you're probably going to need some combination of HIPAA / SOC 2 / PCI DSS certification, regardless of where your servers are physically located. AWS has certified the infrastructure side for you, but that doesn't remove your obligations for the logical side.
> Are you prepared for appropriate data isolation/sharding and controls? Do you have a strategy for scaling database operations per client or across all clients?
Again, you're going to need that regardless of where your servers physically exist.
> vs. relying on a new backend instance per client in a cloud infrastructure
You want to spin up an EC2 per client, and run an isolated copy of the application, isolated DB, etc. inside of it? That sounds like a nightmare to manage, especially if you want or need HA capabilities.
Just that utility at the database management layer is probably worth the price of entry for using cloud resources if you can't justify and cover the cost of say 5+ employees just for the data management infrastructure.