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

Praktika has secured a $35.5M Series A round to apply AI-powered avatars to language-learning apps.

Praktika raises $35.5M to use AI avatars to make learning languages feel more natural

Humane, the company behind the hyped Ai Pin that launched to less-than-glowing reviews last month, is reportedly on the hunt for a buyer.

Humane, the creator of the $700 Ai Pin, is reportedly seeking a buyer

India’s Oyo, once valued at $10 billion, has withdrawn its IPO application from the market regulator for the second time.

Oyo, once valued at $10 billion, shelves IPO plans for second time

Where Aytac Yilmaz lives in the Netherlands, the sun might not appear for days on end, which can really crimp the output of the country’s solar panels. Wind turbines might…

Ore Energy emerges from stealth to build utility-scale batteries that last days, not hours

Paytm, a leading financial services firm in India, said its net loss widened in the fourth quarter as it grappled with a regulatory clampdown.

Paytm warns of job cuts as losses swell after RBI clampdown

Government officials and AI industry executives agreed on Tuesday to apply elementary safety measures in the fast-moving field and establish an international safety research network. Nearly six months after the…

In Seoul summit, heads of states and companies commit to AI safety

Copilot, Microsoft’s brand of generative AI, will soon be far more deeply integrated into the Windows 11 experience.

Microsoft wants to make Windows an AI operating system, launches Copilot+ PCs

Some startups choose to bootstrap from the beginning while others find themselves forced into self funding by a lack of investor interest or a business model that doesn’t fit traditional…

VCs wanted FarmboxRx to become a meal kit, the company bootstrapped instead

Uber and Lyft drivers in Minnesota will see higher pay thanks to a deal between the state and the country’s two largest ride-hailing companies. The upshot: a new law that…

Uber’s and Lyft’s ride-hailing deal with Minnesota comes at a cost

Andreessen Horowitz’s American Dynamism fund has established a new fellowship program aimed at introducing top engineers and technologists to venture investing, a move that could help the firm identify less…

a16z’s American Dynamism team launches program to introduce technical minds to VC

Another fintech startup, and its customers, has been gravely impacted by the implosion of banking-as-a-service startup Synapse. Copper Banking, a digital banking service aimed at teens, notified its customers on…

Teen fintech Copper had to abruptly discontinue its banking, debit products

Autodesk — the 3D tools behemoth — has acquired Wonder Dynamics, a startup that lets creators quickly and easily make complex characters and visual effects using AI-powered image analysis. The…

Autodesk acquires AI-powered VFX startup Wonder Dynamics

Farcaster, a blockchain-based social protocol founded by two Coinbase alumni, announced on Tuesday that it closed a $150 million fundraise. Led by Paradigm, the platform also raised money from a16z…

Farcaster, a crypto-based social network, raised $150M with just 80K daily users

Microsoft announced on Tuesday during its annual Build conference that it’s bringing “Windows Volumetric Apps” to Meta Quest headsets. The partnership will allow Microsoft to bring Windows 365 and local…

Microsoft’s new ‘Volumetric Apps’ for Quest headsets extend Windows apps into the 3D space

The spam reached Bluesky by first crossing over two other decentralized networks: Mastodon and Nostr.

The ‘vote Trump’ spam that hit Bluesky in May came from decentralized rival Nostr

Welcome to TechCrunch Fintech! This week, we’re looking at the continued fallout from Synapse’s bankruptcy, how Layer wants to disrupt SMB accounting, and much more! To get a roundup of…

There’s a real appetite for a fintech alternative to QuickBooks

The company is hoping to produce electricity at $13 per megawatt hour, which would be more than 50% cheaper than traditional onshore wind.

Bill Gates-backed wind startup AirLoom is raising $12M, filings reveal

Generative AI makes stuff up. It can be biased. Sometimes it spits out toxic text. So can it be “safe”? Rick Caccia, the CEO of WitnessAI, believes it can. “Securing…

WitnessAI is building guardrails for generative AI models

It’s not often that you hear about a seed round above $10 million. H, a startup based in Paris and previously known as Holistic AI, has announced a $220 million…

French AI startup H raises $220M seed round

Hey there, Series A to B startups with $35 million or less in funding — we’ve got an exciting opportunity that’s tailor-made for your growth journey! If you’re looking to…

Boost your startup’s growth with a ScaleUp package at TC Disrupt 2024

TikTok is pulling out all the stops to prevent its impending ban in the United States. Aside from initiating legal action against the U.S. government, that means shaping up its…

As a US ban looms, TikTok announces a $1M program for socially driven creators

Microsoft wants to put its Copilot everywhere. It’s only a matter of time before Microsoft renames its annual Build developer conference to Microsoft Copilot. Hopefully, some of those upcoming events…

Microsoft’s Power Automate no-code platform adds AI flows

Build is Microsoft’s largest developer conference and of course, it’s all about AI this year. So it’s no surprise that GitHub’s Copilot, GitHub’s “AI pair programming tool,” is taking center…

GitHub Copilot gets extensions

Microsoft wants to make its brand of generative AI more useful for teams — specifically teams across corporations and large enterprise organizations. This morning at its annual Build dev conference,…

Microsoft intros a Copilot for teams

Microsoft’s big focus at this year’s Build conference is generative AI. And to that end, the tech giant announced a series of updates to its platforms for building generative AI-powered…

Microsoft upgrades its AI app-building platforms

The U.K.’s data protection watchdog has closed an almost year-long investigation of Snap’s AI chatbot, My AI — saying it’s satisfied the social media firm has addressed concerns about risks…

UK data protection watchdog ends privacy probe of Snap’s GenAI chatbot, but warns industry

U.S. cell carrier Patriot Mobile experienced a data breach that included subscribers’ personal information, including full names, email addresses, home ZIP codes and account PINs, TechCrunch has learned. Patriot Mobile,…

Conservative cell carrier Patriot Mobile hit by data breach

It’s been three years since Spotify acquired live audio startup Betty Labs, and yet the music streaming service isn’t leveraging the technology to its fullest potential — at least not…

Spotify’s ‘Listening Party’ feature falls short of expectations

Alchemist Accelerator has a new pile of AI-forward companies demoing their wares today, if you care to watch, and the program itself is making some international moves into Tokyo and…

Alchemist’s latest batch puts AI to work as accelerator expands to Tokyo, Doha

“Late Pledge” allows campaign creators to continue collecting money even after the campaign has closed.

Kickstarter now lets you pledge after a campaign closes