What are the benefits of using cloud providers for video encoding, compared to a dedicated server provider, or even a localized server? Dedicated providers can

What are the benefits of using cloud providers for video encoding, compared to a dedicated server provider, or even a localized server? Dedicated providers can offer 16-core/32-thread Xeon servers for a few hundred dollars a month. If you need to spin up dozens or hundreds of machines at short notice, and then take them down, I could see that cloud use case. If it's a handful or just one, it seems the cloud only complicates the matter.