No, it's very wise as it allows people to specialize in what they do best. There's a reason successful companies focus instead of trying to do everything. And yes, it does make the company wealthier than they would be, as they are able to do more with less now, increasing their profitability/cutting costs.
I am pretty sure Standard Oil and J.D. Rockafeller would beg to differ, but he is a special case.
OK, RANT TIME!
First off, being a Cloud/DevOps/SRE what have you stupid newfangled title working under Agile is a lot more varied than the older ways of doing stuff, even if the cloud provides a ton of hosted services.
Go ahead, build your own redundant Datacenters and CoLos all over the globe, pour massive amounts of money into capex before even being able to offer a product, then try and scale it.Set up your own logging and monitoring and alerting and kafka and elasticsearch and Cassandra clusters and Postgres read replicas.Build your K8s control plane with your own two hands.
Oh, and all of that hardware, well you need to buy it, install it and maintain it.
You will get a messy shitshow.
You will get a bunch of silos, with a seperate DB, OS, security, app support, shared responsibility for oddball stuff like Kafka, backup, and network support team and have to pay colo or your own engineers to fix shit in the DC.
Now, you will still need to understand all of that stuff to set it up, plus extensive understanding of each cloud's specifics, pricing and above all
elasticity to be effective.
Because that is one of the top reasons aside from cloud being OpEx and having lots of managed services to use it.
Furthermore, old legacy IT structures tend to grow vertically, and to automate less, especially when there is lots of outsourcing involved.
Hell, I have seen developer product owners who could not build their product locally and had to push it to a legacy environment, and of course it was some disgusting monolith using dated junk like JBoss.
Try porting that shit to the cloud and scaling.
You can deploy and scale every single piece of your infrastructure in any AWS/GCP/AZURE region within minutes, even seconds, and a lot of that infrastructure can autoscale on the basis of demand.
How?
Through Infrastructure as Code.
Six Advantages of Cloud Computing - Overview of Amazon Web Services
AWS Well-Architected Framework - AWS Well-Architected Framework
Angry sales pitch/rant over!
Sign this here contract and those pics of what you did with your niece and her puppy will not fall into the hands of your wife and mistresses.