Warpstream presents a cloud-native, serverless Kafka solution that eliminates local disks to significantly reduce costs and complexity, particularly for high-volume workloads. By optimizing for cloud unit economics, Warpstream can achieve an estimated 85% cost reduction compared to self-hosted Kafka deployments while maintaining real-time performance. The approach utilizes S3 for data storage, separates data from metadata, and supports advanced features like compaction without the inefficiencies associated with tiered storage models.