Datacenter Ops != IT Admins
In most decent sized companies, there is a distinction made between Datacenter Operations (i.e., those who manage physical servers and plan accordingly) and System Administrators (i.e., the folks who manage the operating systems and above). As someone with some experience managing both company-owned servers and cloud hosted infrastructure, I can confidently say that the overall experiences (as a sysadmin) are very similar. Cloud hosting only solves the physical challenge; all the requirements of managing the OS and applications remain the same. From that perspective, having a solid DCO capability provided by the cloud at their back is a real boon for sysadmins.
M experience is based on Amazon's EC2; ymmv.