> Because they significantly innovated beyond the core lucene library to solve a major pain of their customers around scaling, analytics, etc., providing customers with extra value.
And they've decided that this extra value could be given away for $0, or they wouldn't have released this under an open source license.
> Amazon appear to be only making minor tweaks to the software and commoditising its running
They may be "minor tweaks" but apparently they have a lot of value for some people. I don't particularly care for them and run my own ES cluster. Just as enabling TLS and basic auth are "minor tweaks", but this is what Elastic charges for.
But if there are a non-negligible number of companies using the managed ES service, it means that it has at least some value and that it's good enough compared to the Elastic Cloud offering (I personally don't know how they compare, just that I find both expensive).
This value has been offered by AWS before Elastic's offering. Only now that "not enough people" want to buy the managed Elastic Cloud is it an issue.
To me, these are separate products. Sure, there would be no managed AWS ES without Elastic's product. But Elastic's cloud offering is something that came afterwards, and to me only this particular offering (the managed ES) competes with AWS's offering.
Now, it looks like Elastic will get the worst of both worlds. I only use ES for the logs and needed the authentication. I couldn't really justify the platinum tier just to get SSO, so we made do with basic LDAP. But now that Open Search has those features for free? I don't really have a good reason anymore to stick with Elastic's onerous plan. And no, I've never once called them for the "support" part of the offering, so I'm not really losing anything there.