Own hardware has a weird scaling curve.

It does not make sense for a lot of time and scaling. You need 3+ people maintaining it, you have upfront costs in the hundreds of thousands of euros on the very lower end. If you don't utilize that money spent, sucks to be you. You have planning times in the area of months, not hours, unless you keep capacity you don't use around (rackspace, cabling, power/cooling capacity).

On the other hand, if you have that hardware management running, it's very amazing. Before the AI nuke, We were looking at moving various systems fully bare metal, because it would simplify management on both sides a lot, and a common statement I heard is "We don't deal with systems that small. If we do bare metal container hosting, we don't measure in dozens of gigabytes of memory. Your business case validates that investment. Here is btw three test systems about double your requirement, just old".

Before the AI nonsense (HBM Memory Demand -> RAM & SSD prices), this would result in very competitive hosting costs after some scale, when amortized across 5 years and then tossed into the testing environment until it stops functioning. And these testing environments allow for a lot of experimentation and failover testing.

Though now it's all very different and not clear.