Sitemaps
How We Secretly Lose Control of Our Startups
Does Startup Success Validate Us Personally?
Should Kids Follow in Our Founder Footsteps?
The Evolution of Entry Level Workers
Assume Everyone Will Leave in Year One
Was Mortgaging My Life Worth it?
What's My Startup Worth in an Acquisition?
When Our Ambition is Our Enemy
Are Startups in a "Silent Recession"?
Do Founders Deserve Their Profit?
The Utter STUPIDITY of "Risking it All"
Why Most Founders Don't Get Rich
Investors will be Obsolete
Why is a Founder so Hard to Replace?
We Can't Grow by Saying "No"
More Money (Really Means) More Problems
Committees Are Where Progress Goes to Die
Wait a Minute before Giving Away Equity
Why do Founders Suck at Asking for Help?
The Value of Actually Getting Paid
Will Investors Bail Me Out?
Is the Problem the Player or the Coach?
Do People Really Want Me to Succeed?
You Only Think You Work Hard
SMALL is the New Big — Embracing Efficiency in the Age of AI
The 9 Best Growth Agencies for Startups
Never Share Your Net Worth
This is BOOTSTRAPPED — 3 Strategies to Build Your Startup Without Funding
The Ridiculous Spectrum of Investor Feedback
$10K Per Month isn't Just Revenue — It's Life Support
Why do VCs Keep Giving Failed Founders Money?
If It Makes Money, It Makes Sense
The Hidden Treasure of Failed Startups
My Competitor Got Funded — Am I Screwed?
Why Having Zero Experience is a Huge Asset
How About a Startup that Just Makes Money?
How to Recruit a Rockstar Advisor
Risk it All vs Steady Paycheck
A Steady Hand in the Middle of the Storm
How to Pick the Wrong Co-Founder
Staying Small While Going Big
Why I'm Either Working or Feeling Guilty
Are Founders Driven by Fear or Greed?
What if I'm Building the Wrong Product?
How Startups Actually Get Bought
Quitting vs Letting Go
Actually, We Have Plenty of Time
Why Can't Founders Replace Themselves?
Who am I Really Competing Against?
Investors are NOT on Our Side of the Table
Plan for Bad Times, Budget in Good Times
Demo Article
When a $40m Exit is More Than a $200m Exit
Don't Fear the Reaper: AI Edition
Don't Let Investors Become Your Customer
We Can't Stay Out Of The Game For Too Long
What if Our Dreams Are an Illusion?
What if this isn't a "Big Business"?
Founders, Not All Problems Are Apocalyptic
Stop Listening to Investors
Can You Build a Startup in Less than 40 Hours per Week?
Unlocking the Power of a Startup Community
Strategies to Effectively Raise Capital for Your Startup Business
Are Bootstrapped Startups Less Valuable?
Why Founders Don't Ask for Help
Where to Find Startup Mentors to Take Your Business to the Next Level in 2023
What Is a Venture Capitalist and How Do They Work?
What Is an Entrepreneur? A 2023 Guide to Starting Your Own Business
A Guide to Different Stages of Funding for Startups
Time is Our Greatest Asset
The Toll of Everyone Around a Founder
Big Starts Breed False Victories
Once a Founder, Always a Founder
The Invention of the 20-Something-Year-Old Founder
When is Founder Ego Too Much?
Founder Impostor Syndrome Never Goes Away
Always Take Money off the Table
Should I Feel Guilty for Failing?
The Case Against Full Transparency
Why Do We Still Have Full-Time Employees?
This is Probably Your Last Success
How Many Deaths Can a Startup Survive?
How Should I Share My Wealth with Family?
Why Do VC Funded Startups Love "Fake Growth?"
Living the Founder Legend Isn't so Fun
Youth Entrepreneurship: Can Middle Schoolers be Founders?
How to get Customers for Startups
Founder Sacrifice — At What Point Have I Gone Too Far?
The Power of a Growth Mindset: How to Achieve Success in Your Startup
Startup Board Negotiations: How do I tell the board I need a new deal?
20 Best Kinds of Startups for 2023
Series A Funding Rounds
6 Similarities between Startup Founders and Pro Athletes
Choosing The Right Type Of Website For Your Business
Startup Failure is just One Chapter in Founder Life
What If my plan for retirement is "never retire"?
Is Quiet Quitting a Problem at Startup Companies?
If a Startup Sinks, Founders Go Down With it
Startup Growth Challenges: The Downfall of Becoming Internally Focused
Analyzing Startup Accounting Results

How Cloud Computing Enables Our Startups Success

Denny Brandt

How Cloud Computing Enables Our Startups Success
Photo credit: Adrian

I sift the snow on the mountains below,
And their great pines groan aghast;
And all the night ’tis my pillow white,
While I sleep in the arms of the blast.
~Shelley


Remember when clouds were just for sifting snow, and “the Cloud” was just for storage?

A lot has happened since those days. A lot. But the Cloud’s out-of-sight and out-of-mind nature makes it easy to miss the benefits of the latest developments.

Why Cloud computing matters

Recently I sat down with my colleague Eric Schmidt, an Amazon Web Services (AWS) certified Cloud Systems Architect, to talk about his perspective on the future of Cloud computing. Our aim was to exchange ideas as we create products and services our customers value.

Cloud computing is a key strategic component for our startup. The way it has enabled our Software as a Service value proposition is only growing in significance and scale. That’s important for us as an organization that creates differentiated customer experiences amidst expanding customer expectations. We never stop hunting for new ways to create value.

A conversation about creating value

In the conversation below, Eric answers my questions in areas we believe are key to creating value for our customers. We’ve edited it for length and clarity.

Let’s start with background and assumptions about the Cloud. What would be helpful to know about?

We use AWS as our Cloud solution, but our conversation could be generalized to any industrial strength Cloud computing solution. Let’s assume the product benefitting from Cloud computing has a consumer-facing software component. Think iPhone app or SaaS solution.

For industry context, it’s also worth noting that we’re part of the AWS Partner Network (APN) and have the AWS Financial Services Competency designation.

One last piece of background. You might be wondering, how did “the Cloud” get its name?

The history of the name comes from system diagrams. Engineers typically use a cloud shape to refer to an entity that is outside their organization or control.

 

Get it? Nice.

What’s the regulatory environment like for Cloud solutions? Are they safe and secure?

What we’ve found is that Cloud security is actually stronger than a physical data center’s. It’s the difference automation makes over the human-error factor.

At a physical data center, people are responsible for installs, configurations, and maintenance. All activities are at risk for people’s natural and individual variations. These variations could open vulnerabilities and other problems. Of course, a data center is not the place for individualism.

What were manual human actions in a traditional data center environment are now programmatic API calls, greatly reducing the opportunity for human error.

Photo credit: Alberto Restifo

For example, the AWS CloudFormation service provides a template based orchestration API for provisioning cloud resources that removes the inherent risk of multiple human interactions.

In addition to security and related errors, we’ve also had great results with Cloud compliance standards. The compliance standards among Cloud providers are comprehensive and often also cover narrow markets with unique compliance standards, such as an Asian financial market. The level of verification you can do on a Cloud implementation just isn’t possible in a physical data center. You can check out the compliance details as described by Amazon.

What are the unique Cloud advantages for rapid prototyping, or for lean startup build, measure, and learn cycles? Is there a concept of a development sandbox?

It’s incredibly painless and easy to get started. For AWS, if you have an Amazon.com account, you’re already on you’re way. You can sign up for the AWS Free Tier with your existing account.

There’s an incredibly low barrier to entry. Compared to even 10 years ago, the startup costs are zero or very low. Individuals and small development teams often start for free for the first year. After all, the goal of Cloud computing is to do the undifferentiated heavy lifting for you, so you can focus on differentiators in your products.

If you’re looking for a simple way to get started with an end to end experience, try the Internet of Things (IoT) Button. You don’t have to be a developer.

The IoT Button is a great way for anyone to learn the possibilities by actually using AWS services such as IoT, AWS Lambda, DynamoDB, Simple Notification Service and others. The IoT button and everything you need to get started is available from Amazon.

At what scale does Cloud make sense? Is there a tipping point where the scale is too small or too big?

Cloud solutions makes sense at any scale. While not all Cloud solutions are created equally, neither are all systems deployed in the Cloud in need of the same level of Cloud resources. You can match your needs with Cloud capabilities and their corresponding costs. Whether big or small.

There’s no scale too small. Get started quickly and cheaply, and the infrastructure scales with you. Eventually, cost optimization may be a factor. But that’s not a barrier to starting. So before you launch your web site with an ad during the big game, plan ahead for scaling options. Understand that there are costs associated with supporting increased traffic.

Photo credit: Reelika Raspel

There’s also no scale too big. Don’t think of your Cloud instance as a single hosted server. You’re actually tapping into a set of global, highly-available resources.

If you think about a Distributed Denial of Service (DDoS) attack, you can get a sense for the global, distributed nature of a Cloud system. Imagine a DDoS attack against a single rack server, versus an attack against distributed resources around the world. Most physical data centers can’t respond to and fight off DDoS attacks the way distributed Cloud computing can.

What’s the biggest WOW factor related to product that you’ve experienced from Cloud computing?

It used to be that you had to choose two of three among cost, schedule, and quality. Now, with a correctly architected Cloud solution, you can have all three. This is a huge wow factor the engineers and the CEO can all get excited about.

The wow factors are not the products themselves. You still have to imagine and deliver those. However, the commodities are now off your plate. You can focus on the differentiators that let you deliver products and services your customers value.

Look at technology environments as an example. The benefits come from optimization that allows you to focus. It’s a huge competitive advantage.

Production environments often differ in material ways from Development and Test environments. You may start with identical environments, but as you scale up Production, you’re unlikely to scale your other environments in lock step. With Cloud solutions, you can stamp out identical environments in ways not seen in physical data centers. You have the ability to rapidly build code and move from Dev to Test to Production.

Ultimately, the goal of Cloud computing is to do the undifferentiated heavy lifting for you, so you can focus on the differentiators in your products and customer experiences.

Good-bye big data center. We’ll kind of miss your double air lock doors and elevated tile floors.


Also shared on the Startups.co Medium Publication

Find this article helpful?

This is just a small sample! Register to unlock our in-depth courses, hundreds of video courses, and a library of playbooks and articles to grow your startup fast. Let us Let us show you!

Submission confirms agreement to our Terms of Service and Privacy Policy.

Already a member? Login

No comments yet.

Register to join the discussion.

Already a member? Login

Create Free Account