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Why would one prefer cloud hosting over on-prem for a

commercial use case? Is it basically about outsourcing the infrastructure?

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One of the major things is that when you shut down the massive project that had 1000s of resources you're left with nothing if you've been running in the cloud. On prem you're stuck with physical hardware you now need to flog off as well. Sadly this also usually means beancounters get overly attached to absurd things like the really expensive firewall, IDS and core network gear you bought 5 years ago that you now want to bin.

Flexibility. And no need to physically own hardware like @PsychoFish365 mentioned

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