Observability is hella expensive. Orgs should consider TCO when making such decisions. Paying a few hundred thousands more for the skills to self run could literally chop tens of millions off vendor bills.
Not in the post, but I think there's still some pretty large savings.
Pretty much anything SaaS based is ridiculous. If you can swing self-hosted ( managed but in your account with there's potential for a discussion, but with many products, it's the actual integration work that's the real work.
Don't get me wrong, there's specific "always going to be small" where it likely makes sense.
I'm just saying that SaaS provides a lot more than just the cost of having an engineer or two.
It may not be cost effective, but if you think that hiring two people will be all you spend when you move everything on prem, you'll be in for a bit of a shock.