We host a lot of our infrastructure on Hetzner Cloud and are very happy, but to be fair it's a long long shot away from what AWS offers. You basically only have compute, storage and networking, only three datacenters and two regions to choose from and no managed services at all. You also can't do advanced networking like announcing your own IP addresses (Hetzner only allows that in colocation). You also only have a few instance types available, with RAM maxing out at 32 GB and no GPU servers available.
Don't get me wrong I love Hetzner and their cloud offering and I think they're doing a fantastic job, but it is not comparable to platforms like AWS, Azure or GCP. It's good enough for simple use cases but I think most large companies that want to switch from on-premise would have a hard time adopting it since so many crucial features are missing.
The LIDL cloud will have the same problem I think: They will probably build it on top of OpenStack or Kubernetes but will never reach feature parity with AWS, Azure or GCP. I think in their niche (retailing, logistics) they might be able to get some good adoption if they offer specific services and infrastructure based on their own use cases and experience, but this isn't really competition for AWS, at least not in the broader sense.
Kube removes some of the infrastructure burden of running your own solution but not all of it and that's not the only burden.
For example, I can deploy Kafka on k8s. I still need to know enough about Kafka to be able to deploy it correctly (zookeeper, etc.). I need to know enough about k8s to know how Kafka can run on i and to fix issues. I then need to know enough about Kafka itself to tune it, fix issues, manage it, etc. Then there's interaction events such as upgrades which require coordinating between k8s and Kafka. And in the end I'd still be a novice at all of it.
I would guess that we could just give an external company control over a kube master and have them run their operator, which in turn will spin up all the necessary pods and stuff.
You give a SSH certificate and you get back an IP address in your on-premises / cheap host with Kafka running along with monitors.
Me and the parent commenter are talking about the Hetzner cloud offering, where the largest instances have 32 GB of RAM (https://www.hetzner.de/cloud). Sure you can get a dedicated server there with much more RAM and you can host your own hardware in their colocation facilities, but that has nothing to do with cloud computing in the common understanding of the term.
Looking at https://www.hetzner.com/cloud, the top of the line dedicated option seems to be CCX51, which only has 32GB (edit: 128GB, I must have misread). Do you have some sort of special deal with them?
Don't get me wrong I love Hetzner and their cloud offering and I think they're doing a fantastic job, but it is not comparable to platforms like AWS, Azure or GCP. It's good enough for simple use cases but I think most large companies that want to switch from on-premise would have a hard time adopting it since so many crucial features are missing.
The LIDL cloud will have the same problem I think: They will probably build it on top of OpenStack or Kubernetes but will never reach feature parity with AWS, Azure or GCP. I think in their niche (retailing, logistics) they might be able to get some good adoption if they offer specific services and infrastructure based on their own use cases and experience, but this isn't really competition for AWS, at least not in the broader sense.