Sure. The right circumstances this can make sense. But at a high level of your SAAS starts at $500/mo, you are selling to mid market and enterprises, not startups, almost universally. I was hoping for a product that would make sense for smaller companies. The list of business critical software we pay less for is long (GitHub, credit card processor, email, sms, managed redis, managed postgres, etc).
They can certainly sell this for what they want, I just won't buy at this price.