A lot of these startups have founders from inside that bubble, which means their initial sales network and the market they know is that bubble. Which probably explains why they see it as a good idea.

I would have said they also have procurement departments that did have a clue so one wasn't needed, but now it's more likely procurement has been outsourced to Accenture who do it for highest fee, paying for the convincing PPTs and golf, and lowest Accenture branded service center cost, paying $900/month fully loaded average across the team - the struggling 'knowledge workers' that know neither your company nor its specific needs.

Most do SaaS or dynamodb or lambda type app engine. Once it grows significantly then administration will need oracle etc. But hey these can be done by external contractors

Great point, and a great reminder.