I worked at Red Hat a few years ago... early 2020s. For our customers, something like 80% of our RHEL customers were still on-prem.

Yes, cloud is huge, etc. But there's a very big iceberg of on-prem.

Because cloud customers don't pay for Linux and they use Ubuntu.

Because when customers go from on-prem to cloud they throw away their distro tooling and support needs? I get it, I've worked at plenty of small and large cloud-native places, but saying "All you are selling to is on-prem deployments for old(er) school workloads, which to me is a shrinking market to begin with." you're not at all accurate. Or if it is shrinking, it is still a huge market, likely a much larger market than you think.