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Overheard a cloud engineer call our colo racks 'glorified garages' at the bar

I was grabbing a drink near the Philly tech meetup last Thursday and this guy from a big SaaS shop was trashing our whole colocation approach, saying 42U of gear in a cage is dead weight compared to their auto-scaling setup. He had a point about burst traffic, but he glossed over the 12 ms latency we hold for the hospital network, which his cloud can't touch. Anyone else feel like colo gets dismissed by cloud folks who never run a 99.999% uptime SLA?
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