Sweaty Imposter

Managed Vendor Service Versus Self-Hosted Open Source

TradeoffPrincipalUpdated

Your event streaming moves 3 GB per second, the managed service bill is $4M a year and growing 60% annually, and you already employ six engineers who run streaming infrastructure.

Short answer: Self-Hosted Open Source. Run the open source system yourself, because at this volume the vendor's margin exceeds the cost of the team you already have.

The Two Options

A

Managed Vendor Service

B

Self-Hosted Open Source

Drill This: Your Pick First

The Better Pick

Option B

Self-Hosted Open Source

Run the open source system yourself, because at this volume the vendor's margin exceeds the cost of the team you already have. Six experienced engineers can operate large clusters, and owning the stack removes the pricing leverage the vendor holds at every renewal. Plan it as a staged migration with dual writes, and budget for the on-call load it adds.

When the Other One Wins

Managed Vendor Service

When usage is modest or no one on staff has run the system at scale, the managed service is cheaper once you count salaries, on-call, and the outages a new team will cause.