Featured Article

The cloud can’t solve all your problems

Designing with costs in mind at the beginning is key

Comment

Ladder leaning on white puffy cloud on blue studio background, white surface, drop shadow
Image Credits: PM Images (opens in a new window) / Getty Images

Jon Shanks

Contributor

Jon Shanks is CEO and co-founder of cloud-native delivery platform Appvia.

The way a team functions and communicates dictates the operational efficiency of a startup and sets the scene for its culture. It’s way more important than what social events and perks are offered, so it’s the responsibility of a founder and/or CEO to provide their team with a technology approach that will empower them to achieve and succeed — now and in the future.

With that in mind, moving to the cloud might seem like a no-brainer because of its huge benefits around flexibility, accessibility and the potential to rapidly scale, while keeping budgets in check.

But there’s an important consideration here: Cloud providers won’t magically give you efficient teams.

It will get you going in the right direction, but you need to think even farther ahead. Designing a startup for scale means investing in the right technology today to underpin growth for tomorrow and beyond. Let’s look at how you approach and manage your cloud infrastructure will impact the effectiveness of your teams and your ability to scale.

Hindsight is 20/20

Adopting cloud is easy, but adopting it properly with best practices and in a secure way? Not so much. You might think that when you move to cloud, the cloud providers will give you everything you need to succeed. But even though they’re there to provide a wide breadth of services, these services won’t necessarily have the depth that you will need to run efficiently and effectively.

Yes, your cloud infrastructure is working now, but think beyond the first prototype or alpha and toward production. Considering where you want to get to, and not just where you are, will help you avoid costly mistakes. You definitely don’t want to struggle through redefining processes and ways of working when you’re also managing time sensitivities and multiple teams.

If you don’t think ahead, you’ll have to put all new processes in. It will take a whole lot longer, cost more money and cause a lot more disruption to teams than if you do it earlier.

For any founder, making strategic technology decisions right now should be a primary concern. It feels more natural to put off those decisions until you come face to face with the problem, but you’ll just end up needing to redo everything as you scale and cause your teams a world of hurt. If you don’t give this problem attention at the beginning, you’re just scaling the problems with the team. Flaws are then embedded within your infrastructure, and they’ll continue to scale with the teams. When these things are rushed, corners are cut and you will end up spending even more time and money on your infrastructure.

Build effective teams and reduce bottlenecks

When you’re making strategic decisions on how to approach your technology stack and cloud infrastructure, the biggest consideration should be what makes an effective team. Given that, keep these things top of mind:

  • Speed of delivery: Having developers able to self-serve cloud infrastructure with best practices built-in will enable speed. Development tools that factor in visibility and communication integrations for teams will give transparency on how they are iterating, problems, bugs or integration failures.
  • Speed of testing: This is all about ensuring fast feedback loops as your team works on critical new iterations and features. Developers should be able to test as much as possible locally and through continuous integration systems before they are ready for code review.
  • Troubleshooting problems: Good logging, monitoring and observability services, gives teams awareness of issues and the ability to resolve problems quickly or reproduce customer complaints in order to develop fixes.
  • Reliable service: Using highly scalable, reliable technology like Kubernetes and cloud services will reduce operational risk and improve customer experience. Having reliable tools and software that supports developers and that itself is scalable and reliable will also improve the service quality and impact.
  • Quality of service: Enabling developers to focus on the business logic and not infrastructure or cloud, will allow teams to produce a quality service to your end customers. Sitting on top of technologies that do the heavy lifting for teams, will enable this to be possible.
  • Cost management: Making teams design for cost efficiency at the beginning will keep cloud costs manageable and low. Technologies that give teams insights on what the costs are and how much you’re using, will enable them to make changes quickly and bring costs down.

Smooth scaling is the key to success

Ultimately, your objective is to scale quickly and effortlessly, so that neither your team nor your customers experience bumps in the road. But, in reality, there are a multitude of potential issues that your startup might eventually run into in different environments. If developers are spending more time on infrastructure issues over building features and deploying through to production, it will ultimately impact the release date or the overall quality of the service.

Your development teams need the time and the tools to figure out what’s broken (and fix it) as quickly as possible. They shouldn’t have to implement, design and configure a multitude of tools to meet their needs; your goal should be to provide them so that teams can focus on what matters and be as effective as they can be.

It’s also vital that teams keep an eye on their cloud costs. Ensuring that everyone is designing with costs in mind at the beginning is key. It is incredibly easy for costs to run away with teams due to the pay-as-you-go principles of cloud. Without the right oversight and team empowerment, it can be difficult and time-consuming for teams to do post-mortems on what is causing such high costs and how to bring them down to sensible amounts.

Security is also paramount, especially if your business is planning to hold any customer or business data. Making sure that architectural and cloud best practices are understood and adopted across teams will allow you to sleep well, knowing that your services are as safe as they can be. Having these built into the workflows for teams, will enable teams and applications to scale quickly and seamlessly.

Don’t compromise quality for speed

As technology evolves and your business grows, you need software to effortlessly grow and scale with it. Platforms are designed to allow users to easily iterate and develop applications by removing the burden from teams. A developer platform provides speed, security and scalability that would not be possible to achieve with building in-house at a reasonable cost.

When you build or manage cloud infrastructure for your application teams yourself, you might believe you’re bringing the best standard, but you’re really embracing a never-ending regime of ongoing management and maintenance.

Designing a startup for scale means investing in the right technology today to underpin your future growth. You have to keep an eye on what decisions could mean farther down the road. Take the time to analyze and evaluate the options for each decision, process and product you need. To take full advantage of cloud, you need to be able to automate the work that otherwise drains time, budget and resources.

3 ways the pandemic is transforming tech spending

More TechCrunch

On Friday, Pal Kovacs was listening to the long-awaited new album from rock and metal giants Bring Me The Horizon when he noticed a strange sound at the end of…

Rock band’s hidden hacking-themed website gets hacked

Jan Leike, a leading AI researcher who earlier this month resigned from OpenAI before publicly criticizing the company’s approach to AI safety, has joined OpenAI rival Anthropic to lead a…

Anthropic hires former OpenAI safety lead to head up new team

Welcome to TechCrunch Fintech! This week, we’re looking at the long-term implications of Synapse’s bankruptcy on the fintech sector, Majority’s impressive ARR milestone, and more!  To get a roundup of…

The demise of BaaS fintech Synapse could derail the funding prospects for other startups in the space

YouTube’s free Playables don’t directly challenge the app store model or break Apple’s rules. However, they do compete with the App Store’s free games.

YouTube’s free games catalog ‘Playables’ rolls out to all users

Featured Article

A comprehensive list of 2024 tech layoffs

The tech layoff wave is still going strong in 2024. Following significant workforce reductions in 2022 and 2023, this year has already seen 60,000 job cuts across 254 companies, according to independent layoffs tracker Layoffs.fyi. Companies like Tesla, Amazon, Google, TikTok, Snap and Microsoft have conducted sizable layoffs in the first months of 2024. Smaller-sized…

3 hours ago
A comprehensive list of 2024 tech layoffs

OpenAI has formed a new committee to oversee “critical” safety and security decisions related to the company’s projects and operations. But, in a move that’s sure to raise the ire…

OpenAI’s new safety committee is made up of all insiders

Time is running out for tech enthusiasts and entrepreneurs to secure their early-bird tickets for TechCrunch Disrupt 2024! With only four days left until the May 31 deadline, now is…

Early bird gets the savings — 4 days left for Disrupt sale

AI may not be up to the task of replacing Google Search just yet, but it can be useful in more specific contexts — including handling the drudgery that comes…

Skej’s AI meeting scheduling assistant works like adding an EA to your email

Faircado has built a browser extension that suggests pre-owned alternatives for ecommerce listings.

Faircado raises $3M to nudge people to buy pre-owned goods

Tumblr, the blogging site acquired twice, is launching its “Communities” feature in open beta, the Tumblr Labs division has announced. The feature offers a dedicated space for users to connect…

Tumblr launches its semi-private Communities in open beta

Remittances from workers in the U.S. to their families and friends in Latin America amounted to $155 billion in 2023. With such a huge opportunity, banks, money transfer companies, retailers,…

Félix Pago raises $15.5 million to help Latino workers send money home via WhatsApp

Google said today it’s adding new AI-powered features such as a writing assistant and a wallpaper creator and providing easy access to Gemini chatbot to its Chromebook Plus line of…

Google adds AI-powered features to Chromebook

The dynamic duo behind the Grammy Award–winning music group the Chainsmokers, Alex Pall and Drew Taggart, are set to bring their entrepreneurial expertise to TechCrunch Disrupt 2024. Known for their…

The Chainsmokers light up Disrupt 2024

The deal will give LumApps a big nest egg to make acquisitions and scale its business.

LumApps, the French ‘intranet super app,’ sells majority stake to Bridgepoint in a $650M deal

Featured Article

More neobanks are becoming mobile networks — and Nubank wants a piece of the action

Nubank is taking its first tentative steps into the mobile network realm, as the NYSE-traded Brazilian neobank rolls out an eSIM (embedded SIM) service for travelers. The service will give customers access to 10GB of free roaming internet in more than 40 countries without having to switch out their own existing physical SIM card or…

10 hours ago
More neobanks are becoming mobile networks — and Nubank wants a piece of the action

Infra.Market, an Indian startup that helps construction and real estate firms procure materials, has raised $50M from MARS Unicorn Fund.

MARS doubles down on India’s Infra.Market with new $50M investment

Small operations can lose customers by not offering financing, something the Berlin-based startup wants to change.

Cloover wants to speed solar adoption by helping installers finance new sales

India’s Adani Group is in discussions to venture into digital payments and e-commerce, according to a report.

Adani looks to battle Reliance, Walmart in India’s e-commerce, payments race, report says

Ledger, a French startup mostly known for its secure crypto hardware wallets, has started shipping new wallets nearly 18 months after announcing the latest Ledger Stax devices. The updated wallet…

Ledger starts shipping its high-end hardware crypto wallet

A data protection taskforce that’s spent over a year considering how the European Union’s data protection rulebook applies to OpenAI’s viral chatbot, ChatGPT, reported preliminary conclusions Friday. The top-line takeaway…

EU’s ChatGPT taskforce offers first look at detangling the AI chatbot’s privacy compliance

Here’s a shoutout to LatAm early-stage startup founders! We want YOU to apply for the Startup Battlefield 200 at TechCrunch Disrupt 2024. But you’d better hurry — time is running…

LatAm startups: Apply to Startup Battlefield 200

The countdown to early-bird savings for TechCrunch Disrupt, taking place October 28–30 in San Francisco, continues. You have just five days left to save up to $800 on the price…

5 days left to get your early-bird Disrupt passes

Venture investment into Spanish startups also held up quite well, with €2.2 billion raised across some 850 funding rounds.

Spanish startups reached €100 billion in aggregate value last year

Featured Article

Onyx Motorbikes was in trouble — and then its 37-year-old owner died

James Khatiblou, the owner and CEO of Onyx Motorbikes, was watching his e-bike startup fall apart.  Onyx was being evicted from its warehouse in El Segundo, near Los Angeles. The company’s unpaid bills were stacking up. Its chief operating officer had abruptly resigned. A shipment of around 100 CTY2 dirt bikes from Chinese supplier Suzhou…

1 day ago
Onyx Motorbikes was in trouble — and then its 37-year-old owner died

Featured Article

Iyo thinks its GenAI earbuds can succeed where Humane and Rabbit stumbled

Iyo represents a third form factor in the push to deliver standalone generative AI devices: Bluetooth earbuds.

1 day ago
Iyo thinks its GenAI earbuds can succeed where Humane and Rabbit stumbled

Arati Prabhakar, profiled as part of TechCrunch’s Women in AI series, is director of the White House Office of Science and Technology Policy.

Women in AI: Arati Prabhakar thinks it’s crucial to get AI ‘right’

AniML, the French startup behind a new 3D capture app called Doly, wants to create the PhotoRoom of product videos, sort of. If you’re selling sneakers on an online marketplace…

Doly lets you generate 3D product videos from your iPhone

Elon Musk’s AI startup, xAI, has raised $6 billion in a new funding round, it said today, as Musk shores up capital to aggressively compete with rivals including OpenAI, Microsoft,…

Elon Musk’s xAI raises $6B from Valor, a16z, and Sequoia

Indian startup Zypp Electric plans to use fresh investment from Japanese oil and energy conglomerate ENEOS to take its EV rental service into Southeast Asia early next year, TechCrunch has…

Indian EV startup Zypp Electric secures backing to fund expansion to Southeast Asia

Last month, one of the Bay Area’s better-known early-stage venture capital firms, Uncork Capital, marked its 20th anniversary with a party in a renovated church in San Francisco’s SoMa neighborhood,…

A venture capital firm looks back on changing norms, from board seats to backing rival startups