If you have paying clients, they WILL blame you and your team for the fact it's not working. They don't care who/what the underlying infrastructure is.
Also a good hosting company will handle identifying/fixing/replacing bad hardware for you.
Not to mention sufficient redundancy will ensure that you never see many effects from those hardware failures/power outages/floods/fires/anything else with any reasonable probability.
"The cloud is great because I can blame someone else" is obviously a tenuous argument.
Also a good hosting company will handle identifying/fixing/replacing bad hardware for you.