Cloud Computing for Startups

BLG01x - edited feature imageIn the wake of online security threats, more and more companies are turning to cloud computing in search of better protection. According to Forbes, 83% of enterprise workloads will be in the cloud by 2020. However, it isn’t only big companies and enterprises that are the subjects of cybersecurity breaches. Recently, startups all over the world have been exposed to the threat of hacker attacks, so much so that some stats report that startups make up 58% of all data breach victims.

And, if for a big international company, being under cybersecurity attack already means losing millions of dollars, for a startup, such financial burden can be fatal. So, better online security is not the only thing startups can benefit from when choosing to migrate to a cloud. Cost savings is another important benefit, taking into account the limited budget and other financial concerns that many startups might face.

In terms of saving, cloud computing can be really cost-effective. In fact, according to Hosting Tribunal, the average savings from cloud migration is equal to 15% on all IT spending. However, this source also reports that small and medium businesses benefit from cloud computing the most, spending 36% less money on IT services.

Now, let’s go into details on how your startup can save investments by transferring to cloud computing.

Reducing Hardware Investments

Cybersecurity hardware can be a costly investment. Last year, Gartner predicted that the expenses on network security equipment will exceed over 13 million dollars in 2019.

So, for startups, cybersecurity hardware is a large, inconvenient and, frankly speaking, unnecessary purchase. Cloud computing, on the contrary, requires much less investment, saving a lot of money that you can spend on developing your product/service. Transferring to cloud computing means that all costs that cover repairing and replacing the cybersecurity equipment are your vendor’s (cloud computing owner’s) headache.

Moreover, cybersecurity hardware often consumes a lot of power and takes up a lot of space, which startups don’t often have. Transferring to cloud computing cuts your utility expenses and doesn’t occupy and additional space, thus, substantially cutting your cybersecurity investments.

Lower Maintenance Costs

Let’s talk personnel.

Maintaining cybersecurity hardware often requires the whole team in the IT department. This results in:

  • Spending over $100,000 annually on salaries
  • Having additional finances for possible maintenance operations, repairing equipment, etc.
  • Dealing with additional expenses from paying a third party for repairing cybersecurity equipment

Of course, employing a team of people who support the cybersecurity of your company is a good investment, as you create more jobs. However, for a startup, this is an unnecessary expense.

In this case, investing in cloud computing cuts maintenance costs, meaning that your company can have your IT department concentrate on product development, while the vendor deals with repairs and maintenance.

Smarter Capital Investment Management

Transferring to cloud computing is a smart expense in terms of capital investment. Developing a product is a primary concern for a startup, as the quality of this product is what will make this new company competitive on the market. Thus, startups have to concentrate their major investments on developing the product rather than spending on costly cybersecurity equipment.

Switching to cloud computing is what helped Flatfy, once a small real estate startup, become an international company. According to Flatfy executives, transferring to cloud computing saved them up to 40% of their capital investment, which they spent on developing high-quality localized websites for every country they operate in.

Investment in cloud computing presupposes a pay-as-you-go pricing model. This means that you purchase a cloud software license on a per-user basis and can cancel it at any time you deem necessary. Thus, investment in cloud computing is lower than purchasing in-house cybersecurity solutions. For a startup, purchasing a cloud software is a good capital investment management practice, saving more money for product development and marketing needs.


Although investing in cloud computing is a good way to prevent big data failure, poor cloud computing management can result in more expenses than anticipated. For instance, many beginners make the mistake of purchasing more cloud software accounts than there are people in the company.

Purchasing cloud computing solutions should be a well-calculated move and each step should be consulted with an IT professional. Cloud computing has a lot of benefits, including a pay-as-you-go option. So, if you choose to invest in cloud software, make sure that you take everything from it in terms of saving money.

Final Thoughts

By no means is cybersecurity is something that should not be taken seriously. For a startup, even the smallest cybersecurity attack can be fatal. However, to prevent any hacker attacks, it isn’t necessary to buy costly cybersecurity equipment.

Startups can benefit a lot from investing in cloud computing, including saving money on maintenance and having more finances for product development. Cases of successful startups show that when done right, investing in cloud computing can save you up to 40% of your capital investment, which you can use to better your product and turn your startup into a success.


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Kate Khom

Kate Khom

Kate Khom is a passionate writer who likes sharing her thoughts and experience with the readers. Currently, she works as a digital marketing specialist, you can check her website She likes everything related to traveling and new countries.

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