It could, but it can also be solved reliably by buying your own hardware tailored to the needs of your specific application. Single point of failure issues are

It could, but it can also be solved reliably by buying your own hardware tailored to the needs of your specific application. Single point of failure issues aren't solved by the cloud. Their solved by eliminating single points of failure. 1 VM is just as much of a single point of failure as one real machine. Even if it were true about buying the beefiest VM you're betting your company on an implementation detail that you have no control over.