In 2023, I wrote a long post about why I don’t think the future of cloud data services is BYOC but large-scale multi-tenant SaaS. BYOC stands for Bring Your Own Cloud, and is the practice of deploying a co-managed service into a customer VPC. It’s somewhere between self-hosted and fully-managed SaaS. In my previous writing, I wrote in detail about the drawbacks of this deployment model from the perspective of both the vendor and the customer.
Since then, I’ve been involved in multiple calls with customers and prospective customers, where BYOC has been a large discussion point. When we lost a deal to a BYOC competitor, there were often valid reasons. A year on, my position on BYOC hasn’t really changed, though I would clarify that my position has been focused on a BYOC flavor where the vendor co-manages a complex, stateful single-tenant service. Confluent could have decided to package up Confluent Platform, its single-tenant self-hosted service, put it on Kubernetes with an operator and give it to customers as BYOC. But it wasn’t the right route for building out a BYOC offering at scale. Then Warpstream came along and showed another way of doing BYOC; one that avoids many of the pitfalls that make scaling a BYOC fleet so difficult.
In this post, I will reflect on my last year of customer conversations, movements in the market, Confluent’s acquisition of Warpstream, and its embrace of BYOC as a third deployment model.