I believe the truth is somewhere in the middle. The hype will eventually die down and we'll see some kind of equilibrium.
I've been experimenting with "cloud over" where I only use cloud servers for spare capacity. With docker it's getting easier. My baseline CoLo has the same performance as a super high end AWS instance and costs a third as much after my fixed investment.
I still have the cloud if my box goes down or takes a big traffic hit, but I'm not paying for a bunch of cloud servers all the time either.
I've been experimenting with "cloud over" where I only use cloud servers for spare capacity. With docker it's getting easier. My baseline CoLo has the same performance as a super high end AWS instance and costs a third as much after my fixed investment.
I still have the cloud if my box goes down or takes a big traffic hit, but I'm not paying for a bunch of cloud servers all the time either.