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How startups are cutting cloud costs, renegotiating deals with service providers

  • Startups
  • April 10, 2023

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.

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.

Cybersecurity ecosystem

The Data Security Council of India has forecast that the cybersecurity ecosystem will expand up to a point where nearly one million professionals will be required by 2025. Additionally, the demand for cloud security skills is estimated to grow by 115% between 2020 and 2025, representing almost 20,000 job openings, Narayan added.

An extensive exercise in reskilling and/or upskilling the existing workforce, believe staffing experts, is one of the ways that telcos can future proof their work.

Indian mobile phone operators are expected to at least double their investments on network security with the 5G roll out expected to spark a surge in network vulnerabilities, which assume critical importance especially for enterprises.

However, it is already proving to be a challenge for telcos to have robust security teams.

“Even if we do not talk about 5G (specifically), the security talent in general in the country is very sparse at the moment. We need to get more (security) professionals in the system”

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Bharti Airtel, for example, has been preparing for 5G roll out by upskilling its professionals and offering them certification courses such as CCNA (Cisco Certified Network Associate) and CCNP (Cisco Certified Network Professional). The courses are offered based on skill and eligibility level free of cost.

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