I started using AWS in 2017 while developing one of Peru's most influential digital wallets. The results impressed me, and I wanted to keep exploring AWS. Later, I worked with other cloud providers like Microsoft Azure, Google Cloud, IBM, and Oracle. However, I always came back to recommending AWS, especially for startups and building new digital products. In the past four years, I've used AWS to build two fintechs from scratch, and each of these experiences has reinforced my conviction that AWS is the best option.
Why? AWS offers a wide range of options for implementing any architecture you need, with high levels of automation. This enables my tech teams to move faster and keep costs down. Startups can take advantage of these features because they start from scratch and have the flexibility to build things right from the beginning. Any startup that relies heavily on technology needs the right tools to be efficient and cost-effective. In this article, I’ll share why I recommend AWS for startups and how it can help you build and scale your products effectively.
Why Choosing the Right Cloud Provider Is Critical for Startups
First, let’s discuss why startups must choose their cloud provider carefully.
Speed to Market and Agile Development
Startups need to move fast. Validating your business idea quickly can make all the difference. You need to build rapidly and adapt your products even faster. If your idea takes off, you’ll need to scale quickly. It would help to have a technology foundation that lets you move at lightning speed to do all this. That’s why picking the right cloud provider from the beginning is so important.
Cost-Efficiency and Budget Constraints
Let’s face it—most startups don’t have unlimited budgets. You must be efficient during the MVP (Minimum Viable Product) phase and beyond. Some cloud providers might offer discounts for your MVP, but costs can skyrocket afterward. That’s why choosing a cloud provider that makes financial sense now and in the future is crucial.
Security and Compliance Considerations
Startups should focus on what sets them apart from competitors rather than building everything from scratch. Security is one area where you can leverage the cloud provider’s built-in features. By using solid security and compliance services, you can avoid spending time and money on these critical but foundational aspects.
Need for Scalability and Flexibility
If your business idea is successful, you’ll need to scale rapidly. Your cloud provider should let you start small—with minimal costs—and then scale smoothly as you grow. Changing or scaling your infrastructure shouldn’t be a headache; it should be seamless.
Why I Recommend AWS
Let’s dive into my AWS experience and why it stands out.
Comprehensive Suite of Services
AWS offers an extensive list of services, and they’re constantly improving. I haven’t seen anything quite like it with other cloud providers. This allows you to choose the services that best fit your needs and build your desired tech architecture. Startups benefit significantly from this flexibility, as they build from scratch and can adopt new technologies without the baggage of traditional organizations. I went fully serverless in the last two fintechs I built because it allowed my teams to move faster and operate more cost-effectively.
Unmatched Scalability and Global Reach
Many cloud providers offer auto-scaling features, which are extremely helpful post-MVP. However, some providers change their pricing models, complicating costs after the MVP phase. That’s why choosing technology that lets you move fast initially and remains cost-effective at scale is essential. In my last two fintechs, I could scale quickly without much effort because we went fully serverless. We scaled to over 18,000 users without changing the MVP architecture in one of them. That’s powerful.
Cost-Effective Pricing Models
In technology, you must learn how to use a tool properly to avoid problems. The same goes for the cloud. Without the right talent to make informed decisions, you’ll face cost issues—whether in the cloud or on-premises. If startups use their infrastructure wisely, costs can be minimal. I’ve tried to be cost-effective with other clouds, and while it’s possible, I always find that AWS provides more options to save money. In my last two fintechs, the monthly infrastructure cost during the MVP phase was minimal ($50 - $500), even after scaling ($200 - $1500).
Support for DevOps and Agile Practices
AWS excels in supporting DevOps and Agile practices. This is the first time I’ve seen the same level of automation capabilities with other clouds. Tools like AWS CloudFormation and the AWS Cloud Development Kit (CDK) are outstanding compared to elsewhere. I recommend that any startup make CDK a crucial part of its infrastructure strategy. In my recent teams, we’ve automated nearly 100% of our infrastructure. This accelerates new software deployment, reduces human errors, and lowers costs. I tried achieving that with other cloud providers but have yet to reach the same level.
Innovation and Continuous Improvement
No one can deny AWS’s commitment to innovation. Over the years, I’ve seen many AWS services improve. Sometimes, it’s challenging to keep up with all the changes and incorporate them into my projects, but that’s a good problem to have. Additionally, new products are only helpful if the cloud provider offers good documentation. AWS excels in this area—their documentation has been instrumental in my learning process, unlike other cloud providers.
Addressing Common Concerns
Learning Curve
As mentioned, achieving what I’ve discussed here can only be challenging with the right know-how. That’s why I recommend hiring talent with AWS experience or training your team as soon as possible. Alternatively, you can bring in a consultant to help you start on the right foot.
Vendor Lock-In
I’ve heard a lot about multi-cloud strategies and why they should be the go-to for most organizations. In theory, I agree—in the context of a large organization. But for startups, the primary goal is to validate business ideas, not to be multi-cloud. That’s why I firmly believe that speed is worth the risk of vendor lock-in in the early years of a startup.
Cost Management
Monitoring your cloud costs is a must. Design solutions to take advantage of new technologies and services that reduce costs. This isn’t a one-time activity; it’s ongoing. I’ve seen a lot of startups get surprised by their billing because they made mistakes using a service. That’s why monitoring and hiring the right talent is critical.
Practical Tips for Startup Founders
Hire the Right Expertise: Get a CTO or co-founder with AWS experience. If that’s not possible, hire a DevOps engineer with strong AWS skills or, as a last resort, bring in a consultant.
Use Infrastructure as Code with AWS CDK: Encourage your team to use Infrastructure as Code with AWS CDK. If done right, nearly 100% of your infrastructure will be automated.
Automate Everything: Use IaC not just for your servers and databases but also to build your CI/CD pipelines. This will help your team deploy faster—developing that muscle is crucial for your startup.
Embrace Serverless Technologies: Utilize serverless as much as possible, even if it means tweaking your customer experience.
Conclusion
Choosing the right cloud provider can significantly impact your startup’s success. AWS offers a comprehensive, scalable, and cost-effective platform that helps you build and scale your products quickly. By leveraging AWS’s robust services and focusing on automation and serverless technologies, you can validate your business ideas faster and scale efficiently.
Remember, investing in the right talent and tools now can save you a lot of headaches down the road. So, if you’re a startup founder looking to make the most of your technology stack, seriously consider AWS.
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