From what I have read on the topic, this is the largest concern - spare parts simply do not exist, and if enough small pieces are damaged at once, they may never be replaced in a reasonable amount of time. Entire communities and cities at greatly diminished power/no power for months and years at a time, and every country on the globe competing with each other for decades to bring everything back.
Who knows, I'm not an expert. Can you tell us how prevalent these "transformers with grounded center taps connected to long transmission lines" are, and what the damage might look like?
Or their management is from the cult of MBA and fears actually owning anything, or they just saw an ad for the cloud and got sparkly eyes and said "ooooooooh, shiny!".
I don't know of many small-to-medium sized businesses who migrate to the cloud because it's shiny. They all do it because they either read somewhere or were told by someone (most likely a salesperson) that it would save them money. Contrast that with the sysadmin constantly reminding them of the need for more hardware, more licenses, more overtime, etc.
Anyone who tells you an IaaS migration is about something other than cost is probably trying to sell you IaaS. Fear of running your own infrastructure is just another way of saying that you don't know how to model your costs accurately, which I can guarantee 99.9% of MBA's do not.
I don't want to sound overly bleak here, but anyone asking the Slashdot crowd for ideas on how to generate revenue for their employer using commodity hardware is probably so far removed the actual business that their days are numbered. Your Infrastructure was outsourced to an IaaS provider because they don't want to pay for the iron. Next, it's PaaS - your hypervisors, databases, and operating systems, and you with it.
If you want some real advice, use it as a DR site (as GP stated) and make sure the business understands the risks associated with shutting it down, ensuring your ass is covered by having the CFO and/or CIO issue a statement to that effect (they will pin it on you when the cloud goes down regardless, because if you really read those IaaS contracts, the provider cannot be held liable). Then, walk away from it. Divorce yourself from the infrastructure discussions as much as you can, get involved with bigger and better initiatives so that once the salesmen show up with their PaaS offering, you're too well engrained in the big picture that they can't live without you.
Let's not forget, your employer is moving to the cloud either because they do not see value in what you provide, or they want you focusing on more strategic initiatives. You should probably spend some time cooking up something amazing in the old environment or, worst case scenario, using it as an opportunity to brush up on your skills and certifications.
Secondly, they've started buying all colours, makes, and models of domestic vehicles. Waze doesn't help you if you can't see the police doing traffic.
In short, they will never give up this revenue stream to solve actual crimes because it's so damn convenient and there is no shortage of drivers willing to pay a voluntary tax.
And for God's sake, stop using that stupid Internet-of-things buzzword.
Or, you're just really good at guessing when people are going to die.
We will occasionally experience some belligerence after they have been reprimanded, but we always remind them that the best, most seasoned sales team members only need four things to close a multi-million dollar sale - pen, paper, whiteboard, and business cards.
Some mobility would be good for your family growing up, anyway.