You guys seem to think that I was making an argument against using the Amazon service and in favor of buying servers. That was not what I'm saying in that post. I was making an argument that moving expenses from upfront costs to ongoing expenses is not necessarily a good thing. It may or may not be. You're also assuming start-ups or small companies as customers. I'm also thinking of larger enterprises.
Many of the issues raised in your comments are addressed in the blog post itself and in the comment thread.