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Everyone is talking so much about cost optimization and runway extensions that startups across the board look at every little expense as they look for ways to navigate the downturn. But some costs are better left untouched because the work done may not produce results.
according to We have recently surveyed many investors, cloud costs are one thing that startups can overlook, at least in the early days. As Zeta Ventures managing director Jocelyn Goldfin puts it, if you’re prioritizing cost reductions over growth, the math should make sense. “At least half a month is better, but it’s not worth increasing cloud spending unless you spend a full month on the runway. It’s usually not like that in the first place. “
If you’re a growth-stage startup, it’s important not to lose focus on product development. “I always believe that getting things done end-to-end on time and iterating on user feedback is a priority. Early optimization is the anti-design,” said Tim Tully, partner at Menlo Ventures. “As they say in product teams, KISS (keep it simple, keep it stupid). Always You can go back and optimize later.
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Keeping it simple, however, isn’t always an option for startups these days with so many cloud and component providers crowding the market. Multicloud is now a more viable option than ever in such an environment. “Choosing a public cloud provides greater ease and speed,” says Group 8 Managing Partner Liran Greenberg. He said.
However, Greenberg adds, startups should be mindful of the implications of using multiple cloud providers down the road. “First, the costs of exiting can be expensive enough to make this not worth it for the time being. Second, you have to manage more than one vendor, so your monitoring, cost management, infrastructure like code and security solutions must support all the vendors you use.”
Aside from the usual suspects, there are more vendors and models for starters now than there were even a few years ago. This includes a virtual private cloud that can be useful for companies concerned with privacy and regulatory issues.
For a company to manage its own servers, all investors agree that founders must first carefully weigh the pros and cons of doing so, and only proceed if it’s worthwhile. Tully said, “From a data center perspective, going on-prem, as opposed to cloud-on-prem, ie virtual private cloud (VPC), requires. so true A compelling business reason to explain.
“You have to have a really, really good excuse to start early, because the cost of running this kind of operation is never worth it for a startup,” Greenberg added.
Read the full survey Learn what investors are looking for in cloud startups, the best ways to approach and shape them, why cloud marketplaces are popular, and more tips on what to prioritize when making cloud-related decisions.
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