Similarly, Berlins once fast-growing rapid grocery delivery startup Gorillas recently laid off 300 employees.
With pressure from VC firms mounting,startupsare now bracing for potential hardships ahead by cutting expenses.
This has led to mass layoffs across the sector and a move towards lean spending strategies.
It’s free, every week, in your inbox.
Contract lock-ins and egress fees are making it impossible to leave.
In fact,some arguethat the cloud could be costing many businesses more than its actually saving.
You may have credits, but sooner or later youll have to pay hefty bills.
In fact,65% of French startupsfeel theyre too dependent on GAFAM services.
Meanwhile,othersare concerned that exceptions will be made for certain providers.
Whatever happens at the regulation level, there are some things startups can do to optimize their cloud spending.
Many VC firms areencouragingtheir portfolio companies to make proactive decisions that can help them navigate the current downturn.
Consider what parts of your business data need to be stored on public vs private servers.
Decide which cloud vendors are best for your different departments needs.
For example, you may need more storage and functionality for your logistics operations vs HR.
Check out our guide to building a multi-cloud strategyhere.
This makes it difficult or more expensive to switch to other cloud providers when they want to.
According to Lechelle:
As entrepreneurs, we are optimistic, we dont see barriers.
You use that mindset to bring you forwards.
But theres always a reality check at some point, and thats cost.
Cloud credits encourage people to build things like they dont cost anything.
You may have credits, but sooner or later youll have to pay the bills.
The program isopen for applications, so apply now!
Story byMarris Adikwu
Marris Adikwu is a freelance writer with a passion for internet culture.
Her work has been published in Glamour Magazine, New York Magazine, Eater, and more.
In her free time, she writes short stories.
