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We looked at OVH's managed kubernetes offering but it is hideously expensive compared to, say, DigitalOcean/Vultr,

I thought they had the same deal as DO - control plane is free and you pay for nodes at the standard rate. Have I missed something?

I am considering moving our DO to ovh mainly because DO lacks fine grained IAM

its not the cheapest but its EU only which makes selling your stuff to european mid size companies much easier ;)