Well, I should have probably distinguished between IaaS ans PaaS, but primarily intended to differentiate between
either of these and the GP's advocacy of on-prem or colo.
That is, I would advocate PaaS and IaaS over on-prem/colo, and how far you go towards PaaS is a matter of comfort.
I do think that comes down to control though, and I actually can't think of a much better basis for the decision.