Where you won't have to cut POs or fight to get equipment and then manage cooling.
Ours has the same strangeness (we run both).
The internal hurdles to get money released for physical equipment, staff, or space is high. The internal hurdles for more cost on a cloud service we already have are almost non-existent. Our current lead time on a new workstation PC is about two weeks internally, relative to spinning up a new cloud VM which is about two hours.
Vs.
I will admit that VMs only come out of one department's budget (ours) and we're only dealing with a single vendor ever so it isn't quite 1:1 but that's still the reality on the ground.