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I mean, companies avoiding self hosting isn't just about being cheap. Cloudflare/AWS might cost $100 per mo and only have 95% uptime but you know what you're getting. Self hosting inherently introduces risk.
That 5k machine might pay for itself in half a year OR it might self destruct in 3 months. The man hours and downtime needed to unfuck that mess might cost more than multiple years of flaky cloud hosting. Alternatively, a change in data retention regulation requires hardware redundency, then next month the revenue stream from that hardware drys up and you're stuck holding a $10k loss instead of canceling a $100 payment.