What a disaster
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I think you over-exaggerate the issue when it comes to hardware as the cause. I do agree there might be something that causes many current customers to shift back to using their own sites, though. Cloud vendors rely on the Internet and private telecommunication trunks being stable and nearly 24x7x365. All it takes is a determined, organized, enemy like the ChiComs, Russia, or Iran to use hidden terrorists to covertly and physically disrupt communication nexuses. That is low tech, easy in and out, and only needs to be in a varying set of remote locations. Inconsistent TCP/IP connections, or worse, high latency connections, would cause disruptions to business that would negatively affect revenue and/or net profit. Then they would look to bring their systems back in-house where access by the company users is a private, physically local, network. Just a few such low tech attacks on nodes where Internet communication lines have junctions or are exposed enough, primarily rural areas, would be enough to scare enough cloud customers away and significantly drop cloud revenue below what is necessary to sustain cloud operations profit. A wise cloud vendor should already have an internal project to package their cloud software for those wanting a private, collocated, cloud. Intelligent enough to discover what is there on the network, and prompt the installer on what they can install under the license. But are any cloud vendors smart enough to see that market now and over the next 10 years?
I don't see "on-premises" as a general option for a future disgruntled enterprise customer. I know that the binary choice of one vs the other is the current way of thinking. But actually, when you think about 'cloud' and 'local' in their limiting cases (ie, all cloud vs all local), then compare the two, you only really have somewhat of a case to go on-prem if you are a huge enterprise since the other limiting case is a single human being doing computing with himself, like playing cards on a PC. But even for large enterprises, detailed connections with the outside world are just as imperative as they are for a small business or even individuals doing anything on the computer. The above is true and will remain true, in my opinion, as long as the case for individual human beings doing computing remains impractical regarding establishing sets of durable end point to end point connections with the outside world. From this scenario the cloud is merely a kind of a superfluous man-in-the-middle. But that discussion is too far away from the OP's disaster shout-out.