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

Former Autonomy chief executive Mike Lynch issued a statement Thursday following his acquittal of criminal charges, ending a 13-year legal battle with Hewlett-Packard that became one of Silicon Valley’s biggest…

Autonomy’s Mike Lynch acquitted after US fraud trial brought by HP

Featured Article

What Snowflake isn’t saying about its customer data breaches

As another Snowflake customer confirms a data breach, the cloud data company says its position “remains unchanged.”

12 hours ago
What Snowflake isn’t saying about its customer data breaches

Investor demand has been so strong for Rippling’s shares that it is letting former employees particpate in its tender offer. With one exception.

Rippling bans former employees who work at competitors like Deel and Workday from its tender offer stock sale

It turns out the space industry has a lot of ideas on how to improve NASA’s $11 billion, 15-year plan to collect and return samples from Mars. Seven of these…

NASA puts $10M down on Mars sample return proposals from Blue Origin, SpaceX and others

Featured Article

In 2024, many Y Combinator startups only want tiny seed rounds — but there’s a catch

When Bowery Capital general partner Loren Straub started talking to a startup from the latest Y Combinator accelerator batch a few months ago, she thought it was strange that the company didn’t have a lead investor for the round it was raising. Even stranger, the founders didn’t seem to be…

18 hours ago
In 2024, many Y Combinator startups only want tiny seed rounds — but there’s a catch

The keynote will be focused on Apple’s software offerings and the developers that power them, including the latest versions of iOS, iPadOS, macOS, tvOS, visionOS and watchOS.

Watch Apple kick off WWDC 2024 right here

Welcome to Startups Weekly — Haje’s weekly recap of everything you can’t miss from the world of startups. Anna will be covering for him this week. Sign up here to…

Startups Weekly: Ups, downs, and silver linings

HSBC and BlackRock estimate that the Indian edtech giant Byju’s, once valued at $22 billion, is now worth nothing.

BlackRock has slashed the value of stake in Byju’s, once worth $22 billion, to zero

Apple is set to board the runaway locomotive that is generative AI at next week’s World Wide Developer Conference. Reports thus far have pointed to a partnership with OpenAI that…

Apple’s generative AI offering might not work with the standard iPhone 15

LinkedIn has confirmed it will no longer allow advertisers to target users based on data gleaned from their participation in LinkedIn Groups. The move comes more than three months after…

LinkedIn to limit targeted ads in EU after complaint over sensitive data use

Founders: Need plans this weekend? What better way to spend your time than applying to this year’s Startup Battlefield 200 at TechCrunch Disrupt. With Monday’s deadline looming, this is a…

Startup Battlefield 200 applications due Monday

The company is in the process of building a gigawatt-scale factory in Kentucky to produce its nickel-hydrogen batteries.

Novel battery manufacturer EnerVenue is raising $515M, per filing

Meta is quietly rolling out a new “Communities” feature on Messenger, the company confirmed to TechCrunch. The feature is designed to help organizations, schools and other private groups communicate in…

Meta quietly rolls out Communities on Messenger

Featured Article

Siri and Google Assistant look to generative AI for a new lease on life

Voice assistants in general are having an existential moment, and generative AI is poised to be the logical successor.

1 day ago
Siri and Google Assistant look to generative AI for a new lease on life

Education software provider PowerSchool is being taken private by investment firm Bain Capital in a $5.6 billion deal.

Bain to take K-12 education software provider PowerSchool private in $5.6B deal

Shopify has acquired Threads.com, the Sequoia-backed Slack alternative, Threads said on its website. The companies didn’t disclose the terms of the deal but said that the Threads.com team will join…

Shopify acquires Threads (no, not that one)

Featured Article

Bangladeshi police agents accused of selling citizens’ personal information on Telegram

Two senior police officials in Bangladesh are accused of collecting and selling citizens’ personal information to criminals on Telegram.

1 day ago
Bangladeshi police agents accused of selling citizens’ personal information on Telegram

Carta, a once-high-flying Silicon Valley startup that loudly backed away from one of its businesses earlier this year, is working on a secondary sale that would value the company at…

Carta’s valuation to be cut by $6.5 billion in upcoming secondary sale

Boeing’s Starliner spacecraft has successfully delivered two astronauts to the International Space Station, a key milestone in the aerospace giant’s quest to certify the capsule for regular crewed missions.  Starliner…

Boeing’s Starliner overcomes leaks and engine trouble to dock with ‘the big city in the sky’

Rivian needs to sell its new revamped vehicles at a profit in order to sustain itself long enough to get to the cheaper mass market R2 SUV on the road.

Rivian’s path to survival is now remarkably clear

Featured Article

What to expect from WWDC 2024: iOS 18, macOS 15 and so much AI

Apple is hoping to make WWDC 2024 memorable as it finally spells out its generative AI plans.

2 days ago
What to expect from WWDC 2024: iOS 18, macOS 15 and so much AI

As WWDC 2024 nears, all sorts of rumors and leaks have emerged about what iOS 18 and its AI-powered apps and features have in store.

What to expect from Apple’s AI-powered iOS 18 at WWDC 2024

Apple’s annual list of what it considers the best and most innovative software available on its platform is turning its attention to the little guy.

Apple’s Design Awards highlight indies and startups

Meta launched its Meta Verified program today along with other features, such as the ability to call large businesses and custom messages.

Meta rolls out Meta Verified for WhatsApp Business users in Brazil, India, Indonesia and Colombia

Last year, during the Q3 2023 earnings call, Mark Zuckerberg talked about leveraging AI to have business accounts respond to customers for purchase and support queries. Today, Meta announced AI-powered…

Meta adds AI-powered features to WhatsApp Business app

TikTok is testing streaks that are similar to Snapchat’s in order to boost engagement, including how long people stay on the app.

TikTok is testing Snapchat-like streaks

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! Your usual…

Inside Fisker’s collapse and robotaxis come to more US cities

New York-based Revel has made a lot of pivots since initially launching in 2018 as a dockless e-moped sharing service. The BlackRock-backed startup briefly stepped into the e-bike subscription business.…

Revel to lay off 1,000 staff ride-hail drivers, saying they’d rather be contractors anyway

Google says apps offering AI features will have to prevent the generation of restricted content.

Google Play cracks down on AI apps after circulation of apps for making deepfake nudes

The British retailers association also takes aim at Amazon’s “Buy Box,” claiming that Amazon manipulated which retailers were selected for the coveted placement.

Amazon slammed with £1.1B data abuse lawsuit from UK retailers