Somewhat, though companies (say Netlfix) may use the cloud even when they can fully utilize machines. A similar analogy is also around core competence - focus

Somewhat, though companies (say Netlfix) may use the cloud even when they can fully utilize machines. A similar analogy is also around core competence - focus on what you are good at (software vs real estate). Bathe world is littered with monuments to companies that overbuilt or overpaid.