It's a good answer, especially if you haven't built a self service, easy to deploy self hosted product. It's code for "yes but this is expensive and we'll likely have to do a lot of consulting to make it work".

Self hosting is a reasonable enterprise feature. Support is a difficult thing to build a business off of. It's fine if you don't want to pay for some kind of SaaS, but that's possibly the only way to build any kind of sustainable software business for developers.