Around 15ish years ago, there was a heavy push for things like parallel computing, hosting things on 'the cloud', and managing "big data". So the overarching recommendation was for devices and data to be accessible through a server. It was cheaper to use a third-party for high end compute and large storage rather than storing locally. Remember this was a time when Dropbox was still quite popular.

My original comment is mostly saying that it is too critical of staff saying "how did they not know" when we're now starting to return to in-house solutions. The prior solution was "Go Cloud", now its "Stay Home". In a decade, once enough people learn the struggles of having everything in-house, the next solution will be "Go Cloud" again, or whatever the future equivalent is.

The overall purpose of my comment was more akin to "calm down, we're just in a new tech cycle, no one's an idiot for following the last cycle's solution".