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Reliability is the vast majority of the cost: why lambdas are a thing πŸ”—
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Getting websites up and running is relatively straightforward. Automatically configuring websites to run them is a bit more work. Configuring DNS to automatically fail-over is another thing entirely. This involves three separate disciplines, and is actually irreducibly complex.

First, you need at least 2 load balancers with Round Robin DNS that proxy all requests to your application. Realistically this is going to be HAProxy or something equivalent. The idea is that one of the proxies failing, or the backends failing, is not going to bring down your application. Unfortunately, this means that your backend data source has to also become robust, or you are simply shuffling around your point of failure. Now you also need to learn about software like pgPool to abstract away connecting to multiple replicated databases.

Even if you manage to operationalize the setup of all these services via scripts or makefiles, there's still the matter of provisioning all these servers which must necessarily be on different IPs, and physically located apart from each other. Which leads you to operationalize even the provisioning of servers with mechanisms such as terraform, kubernetes and other orchestration frameworks. You now likely also have to integrate multiple hosting vendors.

All of this adds up quickly. 99% of the cost of your web stack is going to be in getting those last few sub 1% bits of reliability. Even the most slapdash approach is quite likely going to respond correctly over 99.99% of the time. Nevertheless, we all end up chasing it, supposing that the costs of building all this will pay for itself versus the occasional hours of sysadmin time. This is rarely the case until the scale of your business is tremendous (aka "A good problem to have").

So much so that it was quite rare for even the virtualization providers to adopt a "best practices" stack which was readily available to abstract all this nonsense away. That is until the idea of "lambdas" came to be. The idea here is that you just upload your program, and it goes whir without you ever having to worry about all the nonsense. Even then these come with significant limitations regarding state; if you don't use some load balancing "data lake" or DB as a service you will be up a creek. This means even more configuration, so the servers at intermediate layers know to poke holes in firewalls.

The vast majority of people see all this complexity and just say "I don't need this". They don't or can't comprehend layers of abstraction this deep. As such it's also lost on them why this all takes so much time and effort to do correctly. If you've ever wondered why there's so much technical dysfunction in software businesses it's usually some variant of this. Without developers feeling the pain of the entire stack they make decisions that kneecap some layer of this towering edifice.

It's why ops and sysadmins generally have low opinions of developers; everything the devs give them reliably breaks core assumptions which are obvious to them. These devs are of course siloed off from ops, and as such the problems just rot forever. What should have been cost saving automation is now a machine for spending infinite money on dev/ops. Error creeps in and productivity plummets, as it does with any O-Ring process.

As you can see the costs are not just in computational resources, but organizational complexity. Great care must be taken in the design and abstraction of your systems to avoid these complexities.

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