It's not the cloud
It's the fact that server admin guys are realising that they can have twice as many hypervisors if they shop around. I have one that has been working for 5 + years and it cost £1K. If it dies who cares ? The VM will fail over to another one and I will either fix or replace the broken unit.
I'm not going to pay DELL or HP £££££ when I can pick up a cheap box that lasts for years and doesn't have proprietary components that coat the earth and are a nightmare to configure.
Disclaimer, storage is slightly different... don't skimp on that !