Isn’t the issue more that off-the-shelf solutions optimize for features and not cost? For instance, if I sell you an observability product, I want to show off all the cool realtime debugging features and such. And since there’s a cost to having all these features available (retention, indexing, sampling), we end up paying for features we don’t need. In a world of usage-based XaaS, there’s very little incentive to be cost-effective. Arguably even a perverse incentive to waste resources.

I bet you a full dollar that both in-house and open source solutions, on average, are way more stingy with resources. As they should be.