There's no economic reason why running a model locally should be better than using a cloud hosted version.
You pay a 3x markup to rent a server through AWS than managing your own. You pay for convenience. At shall annals that's fine, but for large companies with their own datacenters, you generally do things in house.
Sure there is. Keeping your IP in house.
“There is no reason anyone would want a computer in their home." - Ken Olson, Founder of Digital Equipment Corporation, in 1977