Ops. Unless your core competency is running reports and spark nodes, it's probably cheaper to outsource the management of Spark and friends than to hire people to make sure it's always up and running. To be fair I haven't touched Spark in many years but having to page someone who was good enough to spark to debug why a job stopped at 3am isn't fun.
I think as an end user I would absolutely agree on this point. But many companies use Databricks as part of their automated backend systems that they resell to customers. The cost per "DBU" unit is astronomical for the amount of raw compute in use. It feels a bit like running a restaurant where you serve takeout.
What ops am I missing?
It's a tradeoff. It might cost less dollars but more time. The time and expertise to run their own clusters effectively is not something every org can or desires to do.
Would love to know the TCO trade-off between procuring, securing and deploying on your own clusters vs having them managed via SaaS.