For startups, growth still trumps containing cloud costs

There is room for startups to reduce their cloud costs, even if they have to balance the implicit costs of doing so, such as the time required and the potential for slower development. The question then becomes: to what extent is the search for additional savings a priority for young technology companies?

A recent survey of founders by TechCrunch+ indicates that a shift in investor expectations is prompting startups to take a closer look at their cloud spending and move away from a stance more focused on speed than profitability. – but not too much.

The changing economy and the resulting impact on the availability of venture capital and the price of money keep coming up in our investigative work. In other words, rising interest rates have a ripple effect on cloud spending by tech companies and therefore slow the growth of public cloud incumbents.

TechCrunch+ also recently asked startup founders whether new startups should pursue a multicloud strategy. They answered mostly in the negative, with some caveats about extreme cases.

This morning, we have a wealth of insights to digest, building on our late 2022 work to understand how startups chose their first big cloud provider and why.

Find some fat to trim

Last year, Boldstart Ventures partner Shomik Ghosh told TechCrunch+ that for startups still “in the early product or go-to-market stage, cloud spend optimization should be the last thing to do.” which a founder thinks in addition to using as many cloud resource credits as possible”.