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Depends on your needs. If you expect to grow fast and unpredictably, or have extreme burst workloads (at my company it fluctuates between requiring ~10 cpus to ~50,000, and between 0 GPUs and dozens) or if you need several complex types of services and no people at hand who can manage them, it can be way cheaper. If you just need a few servers, a tape backup and a database, actual hardware has always been cheaper.
Depends on your needs. If you expect to grow fast and unpredictably, or have extreme burst workloads (at my company it fluctuates between requiring ~10 cpus to ~50,000, and between 0 GPUs and dozens) or if you need several complex types of services and no people at hand who can manage them, it can be way cheaper. If you just need a few servers, a tape backup and a database, actual hardware has always been cheaper.