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That depends on where they're spending money. If their cloud costs are 1/10 their labor costs, then doing that won't really move the needle.
by presentation 4y ago
That depends on where they're spending money. If their cloud costs are 1/10 their labor costs, then doing that won't really move the needle.
- withinboredom 4y agoA ten percent reduction in costs is huge. In most businesses, you can only move the needle by fractions of a percent (without ruining people’s job security), so being able to get even a whole percent is nice, more than a whole percent is Must Do ASAP. Most of the time (in life, business, and marriage), you succeed/fail in “death by 1000 cuts”, not in huge gains or losses.
- presentation 4y agoThat's true for a more mature business that already has monetization figured out and is trying to optimize its operation, but sounds like OP is running an early stage startup that isn't even monetized yet. If they can't find a way to make solid margins on his operating costs, then it's a real question if the opportunity cost of being distracted by stuff like how they're hosted is worthwhile vs doing work to materially make their product better/more marketable.
- withinboredom 4y agoOP has 100k potential customers. If they fail to monetize that, there’s no point in continuing. Beyond that, driving costs down before marketing anything and achieving sustainability should be priority number one. That’s the opportunity, and the only one that matters unless they get some other injection of cash. Trying to market on a short runway is suicide.