Startups

Choosing a cloud infrastructure provider: A beginner’s guide

Comment

Blank signpost with five arrows over partly cloudy blue sky - just add your text.
Image Credits: Antonio (opens in a new window) / Getty Images

Sashank Purighalla

Contributor

Sashank Purighalla is the founder and CEO of BOS Framework, a cloud enablement platform.

The promise of lower hardware costs has spurred startups to migrate services to the cloud, but many teams were unsure how to do this efficiently or cost-effectively. Developers at startups thought they could maintain multiple application code bases that work independently with each cloud provider.

Now they’ve realized it is too time-consuming to manage, and there’s no glory in trying to be everything to everyone.

Deploying cloud infrastructure also involves analyzing tools and software solutions, like application monitoring and activity logging, leading many developers to suffer from analysis paralysis. That’s why cloud monogamy is the generally accepted operating principle for startups. But not every company has the luxury to operate within those confines indefinitely.

Realistically, it’s essential to analyze the tools available before you decide on a cloud infrastructure provider to keep application maturity and running costs in check.

You either need:

  • Experienced developers to maintain architectural integrity, maintainability and licensing considerations, or
  • A cloud platform built to adapt to the changing landscape and build, migrate and manage cloud applications.

Until you get those, here are some best practices for getting started. Let’s take a look at the issues startups face with the cloud, how to define the outcome of your cloud applications, how to know when your cloud infrastructure needs updating, and how to use a combination of tools.

Analyze where you are and learn about startup cloud struggles

When it comes to cloud infrastructure, there are two levels for startups:

  1. Early-stage startups building their first minimum viable product. These companies want to deploy minimum cloud computing to reduce infrastructure costs and technical decisions so they can focus on product and market strategy.
  2. Startups with products that have traction. These companies are worried about the future of their cloud infrastructure in terms of security, scalability and maintainability. However, they are not large enough to hire a team of experts.

Founders and decision-makers at both levels struggle with the depth of technical expertise required to manage cloud computing. For example, I was approached by a midmarket startup that had built its solution in AWS, but its only focus was getting it all up and running (level 1). Therefore, it had accumulated technical debt, and the cloud architecture was complex, with hundreds of servers, several dozen unique services, third-party tools, partial logging, and poorly implemented service meshing.

Then this company signed a new customer based in China who insisted on having their entire cloud solution on Azure-China, a subset of Azure (level 2). The company was clueless in this new environment.

Building parallel solutions that have parity on different cloud providers can be costly and require enormous effort. But the alternative for this company was losing an important contract. They had no choice.

To duplicate and readjust code to work on two disparate environments, the company’s developers could have faced further analysis paralysis in attempting to learn all the implementations, services and considerations involved. That’s why startups need platforms to create cloud-agnostic architecture, write code, and automate deployments to their target cloud(s) while performing relevant testing and security validations.

Work out the outcome you want to deliver

Many startups follow a “build and fix model” for cloud infrastructure. That’s because startup developers pick the first tool they see and then the company is tied down (due to licenses or tight coupling). Or they take someone’s recommendation, which may not be optimal in terms of how it interacts with other cloud layers. Then the lack of proper analysis and experimentation of available tools leads to awkward trade-offs and undesirable business blockages.

This is mainly because the choice of services, categories and integrated tools from cloud providers is overwhelming. For example:

  • Azure has services under categories like AI and machine learning, analytics, compute, containers, databases and DevOps. Each of these categories has dozens of unique, Azure-specific services with certain implementations and functionality.
  • AWS’s services are split into similar categories like compute, analytics, database, machine learning, storage and networking. But with more than 238 services, its offerings are bound to be different from Azure’s in terms of cost, usage and the integration involved.

That’s why founders and CEOs should determine what they want the outcome of their cloud applications to be. Is it about performance, reliability or lowering costs? Would your team be able to maintain whatever tool you choose in terms of costs and security?

Cost is often a major obstacle for founders who want cloud computing. Startups with fewer than 100 employees spend an average of 52% of their budgets on infrastructure, according to a survey by DigitalOcean.

Let’s imagine you are looking for logging tools (for each layer of the cloud), with cost-cutting as the desired outcome. As there are dozens of solutions available for optimization, aggregation or visualization, you must think about the capabilities of the different tools and understand the trade-offs.

Let’s break down three different logging options:

  1. Azure Monitor works on top of the Azure Log Analytics Workspace and can integrate with all managed services offered by Azure.
  2. Datadog is a paid third-party service that integrates with Azure Monitor and Azure Event Hubs, a streaming data pipeline.
  3. Splunk is a paid third-party service available as a SaaS solution in Azure’s marketplace.

It is more cost-effective to go for a solution that works independently from Azure Log Analytics–Azure Monitor combo as much as technically possible. But when selecting a third-party Log Analytics paid solution, it is critical to understand from which layer it ingests the log data.

Azure Monitor can become a major contributor to monthly cloud bills if it’s not explicitly configured per data source and data source type. Note that third-party Log Analytics solutions that integrate with Azure Monitor act upon a data pipeline. This causes a data export cost on the Azure side of billing, whereas the user mostly looks at the data ingestion cost billed by the third party. You definitely want to know all this in advance to avoid added costs.

Be prepared to update as business needs change

Startups should realize that every decision with cloud infrastructure has a short life span — the cloud needs constant upkeep and adjustment. The stage of your startup will dictate the evolution of tools, as the combinations will change dramatically over time as your business scales.

One of our customers built their DevOps pipelines using Jenkins, an open source and free automation server to build, test and deploy software. This would have been fine while they remained small. But as the need to scale this implementation arose, the startup realized that Jenkins was not scalable, as it could not run as a clustered implementation.

The company tried vertical scaling with Jenkins, and the developers quickly realized it had reached its physical limits. Then one engineer thought to containerize Jenkins and put it on Kubernetes, but Jenkins natively does not work in state-less mode.

The next option was to look at alternatives built for scale: GitHub Actions, GitLab, Azure DevOps, and AWS CodePipeline, all with many other tools to consider.

More material considerations beyond tooling choices include time to implement, who to train or onboard, and how to deal with customer-facing priorities, alongside “urgent” back-end operational tech to become scalable.

Use a combination of tools for successful cloud deployment

We’ve witnessed a shift in how software is designed: from monolithic applications running on virtual machines to microservices and container-based infrastructures.

In turn, that means startups and their developers have to view cloud solutions tools in combinations that will accomplish an outcome rather than individual siloes dedicated to specific functions. Perfect one-to-one matches of cloud infrastructure tools don’t exist; it is more like a Venn diagram.

If we stick with the logging example, a whole combination of different tool sets can get the same successful outcome, including the ability to associate and persist queries with a visual representation of the data stream and create alerts on data ranges.

The same can be said if you want to build an application in Java on Linux and deploy that on Kubernetes. The tool set required will be very different from what a developer needs to build and deploy an application on an individual Linux machine with a simple CD pipeline. Learning how all these tools interact with each other in combinations is essential for long-term maintenance.

Analysis paralysis is completely warranted, as there are so many subspecialties within cloud operations. Companies must consider storage services, authentication providers, network security layers, and other managed or hosted virtualized services like load balancers, databases, and container orchestrators.

To navigate this crowded cloud infrastructure market, startups should be aware of using tools in combination, their budget, their security and compliance needs, and the knowledge their team or developers have.

More TechCrunch

Kyle Vogt, the former founder and CEO of self-driving car company Cruise, has a new VC-backed robotics startup focused on household chores. Vogt announced Monday that the new startup, called…

Cruise founder Kyle Vogt is back with a robot startup

When Keith Rabois announced he was leaving Founders Fund to return to Khosla Ventures in January, it came as a shock to many in the venture capital ecosystem — and…

From Miles Grimshaw to Eva Ho, venture capitalists continue to play musical chairs

On the heels of OpenAI announcing the latest iteration of its GPT large language model, its biggest rival in generative AI in the U.S. announced an expansion of its own.…

Anthropic is expanding to Europe and raising more money

If you’re looking for a Starliner mission recap, you’ll have to wait a little longer, because the mission has officially been delayed.

TechCrunch Space: You rock(et) my world, moms

Apple devoted a full event to iPad last Tuesday, roughly a month out from WWDC. From the invite artwork to the polarizing ad spot, Apple was clear — the event…

Apple iPad Pro M4 vs. iPad Air M2: Reviewing which is right for most

Terri Burns, a former partner at GV, is venturing into a new chapter of her career by launching her own venture firm called Type Capital. 

GV’s youngest partner has launched her own firm

The decision to go monochrome was probably a smart one, considering the candy-colored alternatives that seem to want to dazzle and comfort you.

ChatGPT’s new face is a black hole

Apple and Google announced on Monday that iPhone and Android users will start seeing alerts when it’s possible that an unknown Bluetooth device is being used to track them. The…

Apple and Google agree on standard to alert people when unknown Bluetooth devices may be tracking them

The company is describing the event as “a chance to demo some ChatGPT and GPT-4 updates.”

OpenAI’s ChatGPT announcement: Watch here

A human safety operator will be behind the wheel during this phase of testing, according to the company.

GM’s Cruise ramps up robotaxi testing in Phoenix

OpenAI announced a new flagship generative AI model on Monday that they call GPT-4o — the “o” stands for “omni,” referring to the model’s ability to handle text, speech, and…

OpenAI debuts GPT-4o ‘omni’ model now powering ChatGPT

Featured Article

The women in AI making a difference

As a part of a multi-part series, TechCrunch is highlighting women innovators — from academics to policymakers —in the field of AI.

7 hours ago
The women in AI making a difference

The expansion of Polar Semiconductor’s facility would enable the company to double its U.S. production capacity of sensor and power chips within two years.

White House proposes up to $120M to help fund Polar Semiconductor’s chip facility expansion

In 2021, Google kicked off work on Project Starline, a corporate-focused teleconferencing platform that uses 3D imaging, cameras and a custom-designed screen to let people converse with someone as if…

Google’s 3D video conferencing platform, Project Starline, is coming in 2025 with help from HP

Over the weekend, Instagram announced it is expanding its creator marketplace to 10 new countries — this marketplace connects brands with creators to foster collaboration. The new regions include South…

Instagram expands its creator marketplace to 10 new countries

You can expect plenty of AI, but probably not a lot of hardware.

Google I/O 2024: What to expect

The keynote kicks off at 10 a.m. PT on Tuesday and will offer glimpses into the latest versions of Android, Wear OS and Android TV.

Google I/O 2024: How to watch

Four-year-old Mexican BNPL startup Aplazo facilitates fractionated payments to offline and online merchants even when the buyer doesn’t have a credit card.

Aplazo is using buy now, pay later as a stepping stone to financial ubiquity in Mexico

We received countless submissions to speak at this year’s Disrupt 2024. After carefully sifting through all the applications, we’ve narrowed it down to 19 session finalists. Now we need your…

Vote for your Disrupt 2024 Audience Choice favs

Co-founder and CEO Bowie Cheung, who previously worked at Uber Eats, said the company now has 200 customers.

Healthy growth helps B2B food e-commerce startup Pepper nab $30 million led by ICONIQ Growth

Booking.com has been designated a gatekeeper under the EU’s DMA, meaning the firm will be regulated under the bloc’s market fairness framework.

Booking.com latest to fall under EU market power rules

Featured Article

‘Got that boomer!’: How cybercriminals steal one-time passcodes for SIM swap attacks and raiding bank accounts

Estate is an invite-only website that has helped hundreds of attackers make thousands of phone calls aimed at stealing account passcodes, according to its leaked database.

12 hours ago
‘Got that boomer!’: How cybercriminals steal one-time passcodes for SIM swap attacks and raiding bank accounts

Squarespace is being taken private in an all-cash deal that values the company on an equity basis at $6.6 billion.

Permira is taking Squarespace private in a $6.9 billion deal

AI-powered tools like OpenAI’s Whisper have enabled many apps to make transcription an integral part of their feature set for personal note-taking, and the space has quickly flourished as a…

Buy Me a Coffee’s founder has built an AI-powered voice note app

Airtel, India’s second-largest telco, is partnering with Google Cloud to develop and deliver cloud and GenAI solutions to Indian businesses.

Google partners with Airtel to offer cloud and GenAI products to Indian businesses

To give AI-focused women academics and others their well-deserved — and overdue — time in the spotlight, TechCrunch has been publishing a series of interviews focused on remarkable women who’ve contributed to…

Women in AI: Rep. Dar’shun Kendrick wants to pass more AI legislation

We took the pulse of emerging fund managers about what it’s been like for them during these post-ZERP, venture-capital-winter years.

A reckoning is coming for emerging venture funds, and that, VCs say, is a good thing

It’s been a busy weekend for union organizing efforts at U.S. Apple stores, with the union at one store voting to authorize a strike, while workers at another store voted…

Workers at a Maryland Apple store authorize strike

Alora Baby is not just aiming to manufacture baby cribs in an environmentally friendly way but is attempting to overhaul the whole lifecycle of a product

Alora Baby aims to push baby gear away from the ‘landfill economy’

Bumble founder and executive chair Whitney Wolfe Herd raised eyebrows this week with her comments about how AI might change the dating experience. During an onstage interview, Bloomberg’s Emily Chang…

Go on, let bots date other bots