If your company is making $1 mil per employee per year, then 10% is 100k. Even at 500k employee or lesseer numbers it's almost always better to buy the $1000/month tool (break even is a measly $108k revenue per employee per year)
It's not just about cost, it's about having the control, stability, and autonomy of on-prem. Plus you can probably repurpose that compute when employees are out of the office.