That's the thing, 'cloud' is just another tool in your toolbox. It's the right tool for some workloads and the wrong one for others. The fact they've shifted the work to their own servers and kept the ops team suggests it was the wrong sort of workload to be in the cloud in the first place.

For a while there was an obsession with moving everything to the cloud, and that was always going to be an expensive mistake in a number of different ways. Hopefully, as the hype dies down more nuanced decisions will be made. There's a whole gamut of options between all in the cloud and all in the data centre, and when people jump straight from one end to the other I'm put in mind of Hamlet's quote "There are more things in heaven and earth, Horatio, / Than are dreamt of in your philosophy." Understand your workload, understand your business' future plans and their needs, and then make a plan, considering all the tools at your disposal.