For sure not, there are more and more small companies and individuals that are offering web hosting services. Not everybody need AWS, cloud and VPS.. There is still money in shared hosting.
Just find a way to show your services in front of people who is looking for this ... try digital marketing, PPC etc. to attract people to your services website .... agree with @dartdesign generally people use shared hosting and there are many companies who are making money by hosting service.
75% of the active websites use cloud. You can search on Google for stats. there is not much room for small hosting as you will only make losses here.
The prices of the big brands are usually also big, and the big brands usually can not deal with the small details, which are sometimes important. Thus, there exists the niche for the cheap hosting, the provider of which will do, what is important for the customers. Such hosting provider will not make (easy) money fast, but, with the hard work, may have the decent income.
Has your hosting business startup gone out of business? In no case! Startups continue to gain momentum, although it is no longer as popular as it was in the late 21st century, or 10-15 years ago. However, more and more users are interested in hosting for personal purposes, or to open an online store, or to announce themselves by creating a website page, such as a personal blog. It's still popular, I'm sure!
Every business will see this kind of phase ..but web hosting business if you are reliable and offer good service you will stay, if you are just thinking to oversell and earn then it wont survive. I personally dont believe in players like google as long term.. there last exit was as domain registrar they close anything anytime and create mess for many users... to there is other side of coin as well.