As global macroeconomic conditions worsen and funding slowdown continues, Indian startups are cutting their spends on an integral part of tech businesses – cloud storage – by renegotiating contracts with service providers like AWS and Google Cloud, multiple startup founders told ET.
Many of these companies have slashed cloud expenses by 20%-30% while some growth stage startups such as ecommerce platforms Meesho and Dealshare have brought down their cloud expenses by 50%, under pressure to control their cash burn, they said.
This has led to the top three cloud service providers – Amazon Web Services (AWS), Google Cloud Platform and Microsoft Azure – waging pricing wars to lure startups onto their platforms in the current downturn.
“Ultimately, the deciding factor for any founder for a cloud service provider is cost,” DevOps startup Hatica cofounder and CEO Naomi Chopra told ET. “AWS couldn’t provide for it in comparison to Azure and Google Cloud…but it makes up for overall efficiency and agility,” she added.
Over the past months, several startups have been approached by AWS rivals to switch over for lesser pricing, multiple founders who have been in talks with them confirmed.
In some instances, founders are using pricing quotes received from Google Cloud and Microsoft Azure to renegotiate discounted contracts with AWS, their primary cloud service provider, said one of the founders. “We were approached by Google and Azure to switch over and were even given some examples of startups that have switched to these providers. However, moving to a new cloud provider itself is a time-consuming and costly affair, keeping in mind the current market environment,” said the founder who did not want to be identified.
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