There is room for Startups can reduce their cloud costs, even if they have to weigh the implicit costs involved, such as the time required and the possibility of slower development. Then the question arises: What is the priority of finding additional savings for young technology companies?
A recent TechCrunch+ Founders’ Survey shows that shifting investor expectations are prompting startups to take a closer look at their cloud spend and move away from a position that’s more about speed than cost-efficiency — but not too much.
The changing economy and the resulting impact on both the availability of venture capital and the price of money are a constant feature of our investigative work. Put another way, rising interest rates are hurting tech companies’ cloud spending and therefore slowing the growth of incumbent public cloud providers.
TechCrunch+ also recently asked startup founders whether new startups should pursue a multicloud strategy. They mostly answered no, with some reservations about edge cases.
This morning we need to digest a number of perspectives, building on our work in late 2022 to understand how startups chose their first major cloud provider and why.
Find fat for trimming
Last year, Shomik Ghosh, a partner at Boldstart Ventures, told TechCrunch+ that for startups that are still in the early product or early-market stage, optimizing cloud spend should be the last thing besides leveraging as many cloud resources as possible What a Founder Should Think About.
