It seems for every problem there's already multiple solutions, and some by the biggest companies (AWS, Google) even. You can still find your niche. For example if they charge by request, you charge per month or vice versa. Not necessarily be cheaper, just have a different pricing model. Some customers prefer one, some the other. Some want the big-enterprise-unlimited-scalability wording on the website, others might prefer the same but packaged in simpler terms targeted at small companies or startups.

If anything the competitor with VC money has proven there is a market. They might be able to put in more money but they already have more aggressive goals and target they have to meet every quarter. That can mean they will start to add a lot of features, get distracted, hire too many people, pivot, run out money, get acquired (and later change the product or make it worse).