What is AWS and Why is it Good for Startups?
Table of Contents
Introduction
When a startup is in its initial stages of business, selecting and employing the right tools and resources is imperative. Running a successful company is a challenging undertaking, and even more so in today’s economic climate. That’s where AWS Startups come into play.
AWS is the world’s most broadly adopted cloud that provides businesses with a comprehensive catalog of scalable and cost-effective cloud computing solutions. Among the many services offered are computing power, database storage, virtual servers, and content delivery.
A leader in cloud computing, AWS was one of the first companies to introduce a pay-as-you-go model providing users with scalable and customizable tools. AWS’s cost is modified based on the customer’s usage—making the platform very appealing to start-ups and small businesses on a budget.
In this blog, we’ll share how AWS cloud computing services work and why it’s particularly popular with startups and web-based tech companies.
How AWS works
AWS is widely revered as one of the top cloud services used among companies of all sizes around the world—offering cloud capability through the use of global data centers established in key locations. Companies use AWS to experiment, lower costs, and increase efficiency virtually without having to manage physical hardware.
The AWS portfolio is comprised of more than 200 services, which can be configured based on the user’s needs. The service catalog features products such as servers, storage, networking, remote computing, email, mobile development, and security.
Why AWS is popular with startups
When first taking off, startups often have a financial disadvantage over larger, more established companies. AWS helps make the journey more manageable for startups with their hassle-free services that are easy on the budget. On top of that, the AWS Startups program is particularly suited to help under represented founders find capital and community. Those were some of the driving factors that led Glou to join the program (see video below).
On top of all that, about 80% of the world’s unicorns (privately held startups valued at more than $1 billion) listed by PitchBook run on AWS, and here are some of the key reasons why:
Cost-effective
AWS’s pay-as-you-go model gives founders time to build their businesses and allows for active growth. The cost-optimization resources are aimed at startups—saving new businesses up to 40%, making it easier to budget. Watch our cost-optimization series videos to learn how to maximize your AWS spending.
Building an IT framework can be costly, and AWS offers a Free Tier so that businesses can get an idea of how much they are going to need before making a financial commitment.
Flexible
Having a flexible IT framework is important for startup growth. AWS offers the flexibility needed to build systems that meet the individual requirements of each customer. They allow users to pay only for what they consume, without having to lock in a long-term contract, thus greatly reducing the risk of overspending.
AWS also enables you to select which operating system, programming language, web application, database, and additional services you need. You’ll receive a virtual environment allowing you to load the specific software and services required for your application.
Scalable
AWS also offers on-demand scaling. In just 10 minutes, you can set up the infrastructure with the resources you need—without having to worry about the system crashing.
They use what’s called AWS Application Auto Scaling, a tool that continually monitors your applications to ensure they are operating at optimum performance levels. When demand increases, AWS Auto Scaling also increases the capacity of its resources to maintain the highest quality of service.
Secure
With the influx of hackers stealing information, security has never been more important. AWS is known for its high-security standards and uses multiple encryption layers—allowing users to set up access controls. AWS supports 143 security standards and compliance certifications, including: PCI-DSS, HIPAA/HITECH, FedRAMP, GDPR, FIPS 140-2, and NIST 800-171.
When strong security is at the core of an organization, it equips them for digital transformation and innovation. AWS was built to be the most secure global cloud infrastructure to create, migrate, and manage applications. Its backed by 300+ cloud security tools and millions of customers including government, healthcare, and financial services.
AWS’s security features are attractive to startups because they allow your business to take a more proactive approach to safeguarding their data. A study conducted by Nucleus Research found that moving from on-premises storage to AWS cloud reduced yearly security events by 43%.
Reliable
AWS provides greater security than a company that hosts its storage, and its dozens of global data centers are strictly maintained and continuously monitored. Startups can have greater peace of mind knowing that their data is safely housed within a reliable cloud server.
Cloud infrastructure is generally known for making faster transitions, and AWS was built with cloud continuity in mind. AWS CodeDeploy easily automizes customized software deployment processes such as rolling out new features and updating applications—eliminating downtime.
Best options for startups
Some of the best options for startups offered by AWS include the ability to:
- Select specific a la carte resources
- Customize your cloud solution
- Use databases to build data-driven applications
Why web-based tech companies use AWS
Web-based tech companies greatly benefit from using AWS’s comprehensive service suite, because it's designed to help startups build and maintain tech solutions.
AWS’s suite includes computing, database, and content delivery tools designed to help startups host their web platforms, reach their target audience, and communicate securely with clients.
For web-based tech companies, there are many advantages to using AWS:
- Improves system reliability
- Optimizes testing efforts
- Streamlines server management
- Automates tasks
- Speeds up release cycles
- Builds confidence in product quality
Software-as-a-Service (SaaS) on AWS
The AWS Cloud is also attractive to SaaS organizations because SaaS models rely on a similar flexible and agile approach to business. Whether building, launching, or scaling SaaS, organizations of all sizes can use AWS to increase agility, lower operating costs, and advance innovation in the cloud.
AWS offers a broad range of tools for companies at any stage of the SaaS journey through the AWS SaaS Factory Program. SaaS organizations can also greatly benefit from AWS’s pay-as-you-go pricing model and being able to manage all of their software solutions in one place.
Conclusion
AWS offers countless tools and resources specifically designed for startups—making for a more seamless journey to building a business. Startup owners can address any questions or concerns 24/7 via AWS’s Support service.
One of the main reasons that startups choose AWS is to get help developing the IT infrastructure they need to become successful. It’s easy to use, which allows companies to focus less on technology and more on building their business cost-effectively.
Additionally, AWS offers more services and features than any other cloud provider and continues to be an ideal choice for startups looking to build without breaking the bank.
Even HubSpot’s platform is built on AWS and supports the expansion of the HubSpot for Startups program.
Ready to get started with AWS? Get $5,000 in AWS Activate Credit valid for 2 years, 1 year of AWS Business Support (up to $1,500), and 80 credits for self-paced labs HERE.