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Why choose Amazon AWS as a cloud hosting solution for your startup

Cloud hosting technology is rapidly gaining popularity — and especially among startups. Why, you ask? In the pre-cloud era, young companies had to pour a considerable portion of their investment into setting up infrastructure. But today, rather than manage their own computing systems or data centers, businesses at every stage and size can get everything they need from a cloud service provider, only paying for what they use. According to CB Insights, lack of cash is the number two reason for startup failure, suggesting that these cloud-associated cost savings can truly make or break many early-stage startups.

In simple terms, cloud computing is on-demand delivery of computing services — servers, storage, database, networking, software, and other IT resources. Opting for a cloud hosting package from a reliable vendor sometimes costs as little as $10 a month, while bringing extra scalability and security, and saving you many other untold hassles.

With so many options available, the next logical question you'll probably ask is, "How do I know which vendor to choose?" Well, we can answer that as well!

Why is AWS the best cloud hosting solution for startups?

The largest tech companies — such as Amazon, Google, and Microsoft — have specifically designed a range of cloud programs with free-of-cost services to help startups and small enterprises move to the cloud. Still, Amazon seems to be far more successful in competing for startup attention.

Per Statista, Amazon leads the $100 billion cloud market, while Visual Capitalist affirms that AWS accounts for 41.5% of the public cloud market, bigger than Microsoft, Google, Rackspace, and IBM combined. Not only is AWS used by many Fortune 500 companies, but it helped pave the way for unicorns including Stripe, Airbnb, and Slack.

Cloud market

So, what makes AWS a market leader?

Spanning 245 countries and territories, AWS has by far the widest range of services. AWS provides various IaaS and PaaS offerings, addressing every task traditionally performed by a server, all divided into organized categories. No matter what you want to do, you can be sure that AWS will never compromise your scalability. And the advantages don't end there!

Before diving into AWS benefits in more detail, though, we’ve briefly outlined some AWS programs that are designed specially for startups.

AWS Startup Programs: A quick overview

AWS Startup Programs

AWS Partner Network (APN) Startup Program

The APN Global Startup Program is perfectly tailored for mid-to-late startups that have already raised institutional funding, found their market fit, and are ready to scale. The APN Global Startup Program offers unique support by assigning Partner Development Managers (PDMs) with deep AWS knowledge and startup or co-sell business experience. Being a participant of the APN Startup Program, you’ll be able to accelerate product development in the cloud, reduce workload risks, and differentiate your solutions by leveraging the best AWS products.

AWS Marketplace for Startups

If your startup has received funding from a VC firm, has a market-ready B2B product that is publicly available, and is production-ready, you are eligible to receive assistance from AWS Marketplace. If you’re a part of AWS Go-to-Market you can enable faster software evaluation and procurement, and automated deployment — all while offering your product to a global customer base. Moreover, while AWS Marketplace will handle all of the complex billing, payment collection, and financial reporting, so you can focus on increasing sales.

AWS Public Sector for Startups

AWS Public Sector Startup Ramp is a program designed to help startups build and scale innovative solutions for the public sector. Being a member of this program you can get support from AWS experts who engage directly with customers to understand the needs of a specific industry. After that, you design the strategy, receive technical assistance from AWS experts to enhance your solution with security, compliance, and reliability. And finally connect with other teams including the Amazon Partner Network (APN), AWS GovCloud (US), and AWS Marketplace to leverage the opportunities within AWS.

How AWS benefits startups

How AWS benefits startups

#1 Affordable pricing

As we’ve mentioned earlier, AWS follows the pay-as-you-go principle meaning you pay only for the storage or resources you use, with no long-term contracts or up-front commitments. Plus, you can start building on AWS for free, with more than 85 different products available from the get-go; just choose between the three major types depending on your domain.

#2 Improved customer acquisition

Amazon Web Services offer different customer acquisition strategies by creating a remarkable customer experience. For example, you can increase visibility with customers through the AWS Competency program. You are free to use different tools to acquire and support your clients, a vital element for small businesses and startups.

With the targeting and analytics that Amazon Pinpoint provides, you can send the right customer the right message at the right time — thus improving customer retention. And to capture caller sentiment in real-time, surface insights, spot trends, and successfully react to customer needs, you can use Amazon Connect. All these tools will definitely improve your customer acquisition strategy.

#3 Scalability opportunities

AWS supports scaling with modular systems that break complex components or solutions into smaller parts that are less complicated and easier to secure and manage. This results in horizontal scaling — automatically adding systems in a distributed manner to accommodate an increase in load, leverage the content delivery network, or go serverless where possible.

AWS also offers auto-scaling where you explore your startup applications, discover what you can scale, choose what to optimize, and track growth as it happens.

#4 Improved collaboration for distributed teams

With the ever-increasing popularity of the remote workforce and the WFH movement, startups need options that enable employees to work from any location while remaining secure and productive. AWS provides a set of solutions to quickly, securely, and cost-effectively enable remote work for any general employee, as well as specialized solutions for contact center agents and creative professionals. Moreover, it helps companies onboard new employees remotely, enable secure access to their desktop from anywhere.

With Amazon WorkSpaces you can be sure that all company content remains securely in the cloud; with Amazon WorkDocs you can remotely share and collaborate on documents inside and outside the organization; and with Amazon Chime you have the opportunity to enable virtual meetings, calling, and chats from anywhere.

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Like all technologies, AWS has minor disadvantages — confusing billing, EC2 limits, possible periods of downtime — but having worked through them with countless clients, we can say that the benefits clearly outweigh the cons.

That said, if you’re still not sure whether AWS is the right choice or you’re curious how the others compare, get in touch! We’d love to help you start your journey to the cloud.

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