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

Here’s what one insider said happened in the days leading up to the layoffs.

Tesla’s profitable Supercharger network is in limbo after Musk axed the entire team

StrictlyVC events deliver exclusive insider content from the Silicon Valley & Global VC scene while creating meaningful connections over cocktails and canapés with leading investors, entrepreneurs and executives. And TechCrunch…

Meesho, a leading e-commerce startup in India, has secured $275 million in a new funding round.

Meesho, an Indian social commerce platform with 150M transacting users, raises $275M

Some Indian government websites have allowed scammers to plant advertisements capable of redirecting visitors to online betting platforms. TechCrunch discovered around four dozen “gov.in” website links associated with Indian states,…

Scammers found planting online betting ads on Indian government websites

Around 550 employees across autonomous vehicle company Motional have been laid off, according to information taken from WARN notice filings and sources at the company.  Earlier this week, TechCrunch reported…

Motional cut about 550 employees, around 40%, in recent restructuring, sources say

The deck included some redacted numbers, but there was still enough data to get a good picture.

Pitch Deck Teardown: Cloudsmith’s $15M Series A deck

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

OpenAI’s ChatGPT announcement: What we know so far

Unlike ChatGPT, Claude did not become a new App Store hit.

Anthropic’s Claude sees tepid reception on iOS compared with ChatGPT’s debut

Welcome to Startups Weekly — Haje‘s weekly recap of everything you can’t miss from the world of startups. Sign up here to get it in your inbox every Friday. Look,…

Startups Weekly: Trouble in EV land and Peloton is circling the drain

Scarcely five months after its founding, hard tech startup Layup Parts has landed a $9 million round of financing led by Founders Fund to transform composites manufacturing. Lux Capital and Haystack…

Founders Fund leads financing of composites startup Layup Parts

AI startup Anthropic is changing its policies to allow minors to use its generative AI systems — in certain circumstances, at least.  Announced in a post on the company’s official…

Anthropic now lets kids use its AI tech — within limits

Zeekr’s market hype is noteworthy and may indicate that investors see value in the high-quality, low-price offerings of Chinese automakers.

The buzziest EV IPO of the year is a Chinese automaker

Venture capital has been hit hard by souring macroeconomic conditions over the past few years and it’s not yet clear how the market downturn affected VC fund performance. But recent…

VC fund performance is down sharply — but it may have already hit its lowest point

The person who claims to have 49 million Dell customer records told TechCrunch that he brute-forced an online company portal and scraped customer data, including physical addresses, directly from Dell’s…

Threat actor says he scraped 49M Dell customer addresses before the company found out

The social network has announced an updated version of its app that lets you offer feedback about its algorithmic feed so you can better customize it.

Bluesky now lets you personalize main Discover feed using new controls

Microsoft will launch its own mobile game store in July, the company announced at the Bloomberg Technology Summit on Thursday. Xbox president Sarah Bond shared that the company plans to…

Microsoft is launching its mobile game store in July

Smart ring maker Oura is launching two new features focused on heart health, the company announced on Friday. The first claims to help users get an idea of their cardiovascular…

Oura launches two new heart health features

Keeping up with an industry as fast-moving as AI is a tall order. So until an AI can do it for you, here’s a handy roundup of recent stories in the world…

This Week in AI: OpenAI considers allowing AI porn

Garena is quietly developing new India-themed games even though Free Fire, its biggest title, has still not made a comeback to the country.

Garena is quietly making India-themed games even as Free Fire’s relaunch remains doubtful

The U.S.’ NHTSA has opened a fourth investigation into the Fisker Ocean SUV, spurred by multiple claims of “inadvertent Automatic Emergency Braking.”

Fisker Ocean faces fourth federal safety probe

CoreWeave has formally opened an office in London that will serve as its European headquarters and home to two new data centers.

CoreWeave, a $19B AI compute provider, opens European HQ in London with plans for 2 UK data centers

The Series C funding, which brings its total raise to around $95 million, will go toward mass production of the startup’s inaugural products

AI chip startup DEEPX secures $80M Series C at a $529M valuation 

A dust-up between Evolve Bank & Trust, Mercury and Synapse has led TabaPay to abandon its acquisition plans of troubled banking-as-a-service startup Synapse.

Infighting among fintech players has caused TabaPay to ‘pull out’ from buying bankrupt Synapse

The problem is not the media, but the message.

Apple’s ‘Crush’ ad is disgusting

The Twitter for Android client was “a demo app that Google had created and gave to us,” says Particle co-founder and ex-Twitter employee Sara Beykpour.

Google built some of the first social apps for Android, including Twitter and others

WhatsApp is updating its mobile apps for a fresh and more streamlined look, while also introducing a new “darker dark mode,” the company announced on Thursday. The messaging app says…

WhatsApp’s latest update streamlines navigation and adds a ‘darker dark mode’

Plinky lets you solve the problem of saving and organizing links from anywhere with a focus on simplicity and customization.

Plinky is an app for you to collect and organize links easily

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

For cancer patients, medicines administered in clinical trials can help save or extend lives. But despite thousands of trials in the United States each year, only 3% to 5% of…

Triomics raises $15M Series A to automate cancer clinical trials matching

Welcome back to TechCrunch Mobility — your central hub for news and insights on the future of transportation. Sign up here for free — just click TechCrunch Mobility! Tap, tap.…

Tesla drives Luminar lidar sales and Motional pauses robotaxi plans