Startups spend way more on staffing than cloud. generally the cloud Premium is less than the cost of a single employee for an early stage startup.
As the startup scales it’s about velocity of product. Spending 10% your time to save 20% on cost is a bad strategy. Instead startups should take that 10% time and invest it into their core product. This would lead to an accelerated timeframe for raising their next funding, which will be much larger than any cost savings. Eventually in the future once growth slows down you can focus on costs to improve profit.
*you still want to ensure your costs grow slower than top line rev.
As the startup scales it’s about velocity of product. Spending 10% your time to save 20% on cost is a bad strategy. Instead startups should take that 10% time and invest it into their core product. This would lead to an accelerated timeframe for raising their next funding, which will be much larger than any cost savings. Eventually in the future once growth slows down you can focus on costs to improve profit.
*you still want to ensure your costs grow slower than top line rev.