The smartest approach is to be able to run anywhere, which is increasingly practical due to VMs, Docker etc. (At least funded) startups should start with the c

The smartest approach is to be able to run anywhere, which is increasingly practical due to VMs, Docker etc. (At least funded) startups should start with the cloud as speed to completion is key, but can later optimize for cost. Elasticity of the cloud is also great, dealing with peak demands dynamically without having to purchase hardware. I'd suggest larger companies to use at leas two cloud vendors to add resilience (when MS Teams went down, so did Slack - I was told they both use MSFT's cloud).