The SaaS Observability Era is Ending: Why BYOC Is the Future of Telemetry
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SaaS observability platforms like Datadog and New Relic are hitting economic and technical limits as modern workloads (Kubernetes, AI, microservices) generate far more telemetry than legacy pricing models can handle. The proposed solution is Bring Your Own Cloud (BYOC): deploying observability software inside your own VPC so telemetry never leaves your environment. This eliminates egress costs, ingestion pricing, cardinality surcharges, and forced sampling tradeoffs. BYOC aligns with zero-trust security, FinOps, data sovereignty, and AI workload requirements, effectively turning observability from a centralized SaaS service into a cloud-native infrastructure primitive owned and controlled by the engineering team.
Table of contents
The Problem: Observability Got Too Expensive and Too CentralizedHow We Got Here: The SaaS PlateauA Shift in Architecture: Bring Your Own Cloud (BYOC)Why BYOC Solves What “Data Lakes” and “AI Observability” Don’tThe Next Chapter: From SaaS to SovereigntySort: