ok let me rephrase...for the vast majority of businesses using the cloud, and vast majority means small businesses since there are way more small businesses than big businesses, the cloud is much much cheaper.
the 'cloud' has enabled my business to grow. without it (despite the fact that our business is delivering customers to the cloud), i would not be able to grow and scale my business efficiently.
the author is talking about hosting an application in the cloud, which does not nearly encompass all the use cases for the cloud, and thus invalidates the argument.