Startups have become the norm nowadays. They’ve become a hallmark for not just the tech industry but also a thriving economy. However, when it comes down to it, the startup arena can also become one of the most brutal, unforgiving arenas any founder or individual can find themselves. The world has its eyes on Southeast Asia – Malaysia included – as its startup ecosystem teeters on the verge of another boom. The start-up arena has become one of the largest spaces for investment in the region, attracting some USD$1.48 billion in just Q1 of 2021 alone according to CB Insights. A significant chunk of 40.6% of this investment is driven by early-stage deals.
So, the big question is, what do we do with this data? We’ve heard tonnes of startup stories – so, we’re offering a slightly different perspective. Let’s talk about the tech. Yes, not every startup is an app or tech-related. However, with the rapidly changing needs and challenges now, it has become even more important for startups to be able to adapt and react accordingly – in a word – AGILE. Again, it’s a term we’ve heard or read countless times. That said, it’s become even more important now that they do – it could be the difference between survival and disappearing into the ether.
Fail Efficiently, Innovate Quickly
Like a wise woman once sang – “Let’s start at the very beginning. A very good place to start…”. The world as we know it has changed over the past few decades. In fact, it’s changed in the past few years! The costs of starting a startup have reduced from USD$5 million in 1999 to just over USD$50,000 in 2010 and continue to decline.
The biggest difference? The Cloud. Cloud computing has significantly reduced the capital needed to start-up enterprises and it will continue to do so. Companies like Amazon Web Services (AWS) are enabling agility and cost-efficiency. They are enabling startups to take off with no upfront costs but most importantly they encourage startups to experiment and fail fast – allowing them to move forward with innovating their next approach. Each failure allows startups to learn, optimise and eventually succeed.
“The great thing about startups is the ability to start small and learn as you go. So long as you get the foundations right – such as ensuring you are secure by design from the outset – it won’t matter so much if you make the odd misstep along the way, because the consequences will be small.”
Digbijoy Shukla, Business Development Lead, Startup Business Development ASEAN, AWS
These flexibilities are key in startups as it goes without saying – the road to their success is how fast they are able to present and prove their concept. The ability to provision and decommission servers and technological resources quickly and efficiently will help these start-ups further optimise and conserve resources. With this inherent efficiency built in it falls to start-ups and their management to take advantage of the tools at their fingertips to enhance their offering, evolve their approach and embrace the insights they are privy to.
The Right Cloud Computing Partners can determine the Success of Startups
The ability to fail fast and experiment comes secondary to the tools any startup has at its disposal. Cloud computing continues to be a necessity simply because of its robust offerings. Going digital is no more about changing typewriters to desktops, it’s about a set of tools that allow you to create, adapt and react to ensure that the company is meeting its clients’ and customers’ needs.
“It’s critical to align yourself with the right partners and support as early as possible. Folks like 500 Startups and AWS aren’t here to be new and trendy, we’ve been part of the core ecosystem infrastructure since the early days.”
Khailee Ng, Managing Partner, 500 Startups
Choosing the right cloud, then, is an essential part of a start-up’s success. It’s like choosing the right business partner, you need someone who believes in your vision and complements your skills with the correct tools. With the number of Cloud providers continually increasing, start-ups are forced to make a choice based on the needs and skill level of their organisation.
In our session with AWS, Khailee Ng, Managing Partner at 500 Startups, stressed that getting the right partner can be akin to getting that first investment. Programs like AWS Activate enable startups to continue experimenting and functioning while upskilling and adapting. It creates a simultaneous process in which founders, staff and enablers are continually interacting and improving. In fact, programmes like AWS Activate essentially provide startups with an infusion of not just credits for experimentation and setting up, it provides a platform for startups to learn and implement the relevant knowledge for their success. AWS also provides technical support which allows non-technical founders to also benefit.
Scale, Pivot and React with Actionable Insights from the Cloud
Being on the Cloud is not always about cost or efficiency. It’s about the amount of data that will be available from the experimentation and even day to day usage of services and products. The data and insights that it gives will invariably determine the direction in which the startup can grow. In fact, if utilised properly, this data can even provide insights into new niches and services that can grow the startup’s user base and open new markets.
In the initial six months, we were a car listings site. We pivoted the business in 2016, based on the data. We then extended our sales online, with customer benefits such as five days money back guarantee. Our (sales) pickup rate became much stronger, as we saw the same level of sales (as what we experienced) before the lockdowns. It’s really all about navigating successfully through this crisis.”
Eric Cheng, Co-Founder and CEO of Carsome, an integrated car e-commerce platform
Take, for instance, Malaysian born startup – Carsome which started as a platform for searching for second-hand cars. The company ended up pivoting to complement its pre-existing service. They expanded to include the sales and purchase of these vehicles based on insights derived from the data generated by their users. They were able to gain insights that highlighted a niche that they could occupy; more importantly, it complemented their existing product. With these insights, they were quickly able to adapt, react and develop an offering that enhanced their product and led to exponential growth. They continue to use this data to enhance their service and ensure user happiness.
Of course, the Cloud doesn’t just provide for actionable insights and agility. It’s also about offloading mundane tasks and leveraging offerings like AWS Sagemaker. Implementing AI and Machine Learning in taking over tasks that can and should be automated will allow startups to focus their workforce on more pertinent tasks that will allow them to differentiate themselves further. Focusing on what is important will allow startups to eventually be able to scale. Of course, this doesn’t mean that vital tasks are offloaded, but it does mean that startups are able to maximise efficiency and optimise their workforce allowing them to flourish.
The Cloud Is Not the Future, It is Now
We keep hearing that the Cloud is the future. In truth, startups and companies that fail to adopt and adapt are bound to be held back by their own inefficiencies and stigmas. It is crucial that we realise that the Cloud is now – it’s not the future; at least, not anymore. Leveraging the Cloud and its many tools is a pivotal skill that startups need to develop. In fact, it would not be unfounded to say that it is a skill that all organisations should already be developing.
We are at a stage in the world where technology has already proliferated every aspect of our lives; from our entertainment to our work and even in our day-to-day lives. Why then are we hesitant to adopt it at scale to increase our own efficiencies and productivity? Why are we hesitant to put technology – already available – to use to increase profitability?
Startups cannot wait to adopt Cloud computing anymore. In fact, they are setting themselves up for failure without the proper Cloud and the willingness to learn how to use it. You don’t need to be a rocket scientist to put technology to work for you in this day.
