> because they don't provide a specific SaaS is kinda weird
I think for most business stakeholders it's not about the number of services but rather the coverage of business-critical needs. When you have access to Azure Entra, you know that you can cover 90%+ of your auth needs with that service. If you have access to AWS S3, you know that your various storage needs would be possible to cover with that. If a managed Postgres is available, you know that most of the IT systems you run would be able to take advantage of that. You look at Azure their IAM/audit/observability offerings and it's the same.
When you look at Hetzner as a business stakeholder, all you see are bare servers and and one object storage service that you are not sure of how battle-tested it is. And then you start thinking: "okay, I will need to run k8s or some other workload orchestration approach, my IT systems need Postgres/MySQL/SQL Server etc, I need auth, I need audit, I will need to build, operate, maintain all of that in-house". I am not saying that this is a wrong path for everyone, but Hetzner essentially leaves you no choice. And many business stakeholders who have been operating their own own-prem infra or colocated or rented IaaS plus a large dev team for decades and have since switched to one of the hyperscalers and reduced their dev/IT headcount - may not want to go back to the old model.
> limiting yourself to a smaller portion of AWS/Azure/GCP services can facilitate migrations to other cloud platforms.
Yes, which is why you insist (where possible/reasonable) on Postgres-compatible DBMS offerings, IdP solutions based on OIDC, observability on OpenTelemetry.
> Sure, smaller cloud providers don't usually have all those services, but this doesn't mean they are not cloud providers
Yes, it could mean that they are not cloud providers.
> but they can probably satisfy the needs of other users who are more than happy with a smaller feature set
Please see the linked article. This is essentially "users who are happy to build some of the furniture themselves".