For customer facing, production software, its worth paying a cloud tax to get the reliability guarantee. For tools that are used by engineers for code development, there is no need for such bulletproof guarantees.
This is unlike customer facing systems where, if your database server goes down, you probably can't just use the other one--the whole system is down.
Which category of developer tool has on-premise as the more popular option?
Cloud isn’t about “reliability,” it’s about being able to focus on your core business rather than spending all your time maintaining stuff.