When Should Startups Consider Managed Services? | Amazon Onboarding with Learning Manager Chanci Turner

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A frequent oversight among founders embarking on their journey with AWS is the tendency to create their own solutions rather than utilizing available managed services. In the AWS ecosystem, a managed service is one that is developed, managed, and operated by seasoned experts, contrasting sharply with the “roll your own” approach where the responsibility for ongoing maintenance and operations falls squarely on your shoulders.

Often, developers begin by using open-source software for their local proof of concept. However, when the time comes to deploy their application online or scale it, they face the difficult choice of either refactoring parts of their code to integrate cloud services or maintaining their current setup, which can lead to increased operational workload and expenses.

Before finalizing your tech stack, it’s crucial to assess its scalability alongside your business. The last thing you want is to develop a minimum viable product, gain traction, and then have to overhaul your application to accommodate growth. Ask yourself if your architecture will remain viable both technically and financially as you succeed.

Making the Right Choice

When determining the architecture for your application, consider the following critical questions. These factors can guide you in deciding between managed services and a DIY solution.

1. Operational Effort: How much maintenance does your stack demand? Consider routine tasks like software updates, security patches, and hardware upgrades. If these tasks consume a significant portion of your team’s time, that’s time diverted from adding value to your product.
2. Infrastructure Costs: What will it cost your company to run the stack at various growth stages? This is crucial for understanding your capital needs and potential profitability. Leaner operations are more attractive to investors who prefer businesses leveraging existing services for value creation.
3. Complexity: If you commit to a particular stack, how complex might it become over time? Minimizing complexity allows for faster movement and less risk. More technologies and vendor products equate to a growing need for specialized IT staff, which can escalate costs and operational tasks.
4. Feature Development vs. Infrastructure: Does the chosen service accelerate feature development for your customers? Achieving product-market fit often hinges on iterating features rather than perfecting architecture. Our goal at AWS is to empower you to focus on coding that delivers value to your users.
5. Agility: How swiftly can you roll out a new feature, and how quickly can you adapt if needed? Agility is a primary advantage of cloud and managed services, enabling rapid innovation.
6. Reliability: While ensuring minimal errors in your application is critical, maintaining consistent reliability can be daunting. Managed services relieve you of this burden, as our experts handle implementation and operation.
7. Availability: Does your application require constant uptime? High availability can be challenging to achieve independently. Managed services come with inherent high availability, managed by AWS, ensuring peace of mind.
8. Security: How secure will your service be if you build it yourself? Security should be a priority from day one, yet it can significantly slow down innovation due to overhead. AWS prioritizes security, with dedicated teams working to ensure our managed services are robust.
9. Time to Market: How quickly can you launch new features? Choosing managed services allows you to avoid reinventing the wheel, helping you stay lean and focused on delivering product value.
10. Portability: Will your application need to move on-premises or to another cloud provider? If so, consider a DIY approach. However, managed services like Amazon Elastic Kubernetes Service (Amazon EKS) allow you to run containers on AWS without managing the Kubernetes cluster, making it easier to port to another platform.
11. Customization: Do you require a high level of customization? If so, a DIY solution may be more beneficial. If customization isn’t crucial, managed services are generally recommended.

Benefits of Managed Services

Before diving into code or deploying open-source software, it’s essential to explore available options. Building correctly from the start can help you move swiftly to outpace competitors and develop a scalable product. Transitioning away from a “build first” mindset and conducting thorough research can lead to better outcomes.

AWS offers managed services for most common use cases, making it likely that you’ll find a suitable solution for your application. As a general rule, we advise opting for a managed service if one meets your requirements.

AWS managed services deliver exceptional reliability and availability due to our investment in these offerings. By leveraging these services rather than deploying them yourself, you can sidestep substantial operational burdens, allowing you to focus on creating business value instead. The AWS pricing model ensures that you only pay for what you use, providing flexibility and mitigating the risk of large upfront costs that could jeopardize your startup.

Benefits of a DIY Approach

While building your own solution offers increased customization and control, this path should only be considered if it clearly benefits your core business. Will your custom solution provide a sustainable competitive edge?

Regulatory compliance and portability are also vital considerations, as you may need specific software or geographic hosting. In these situations, managing your own stack might be the way to go.

Additionally, leverage your team’s existing knowledge, which can expedite development. However, always consider long-term operational costs, as these can significantly impact your total expense over time.

Conclusion

To lay the groundwork for success, adopt a cloud-native strategy as you kick off your project. Although it’s impossible to predict the future, contemplate where your application will be hosted, which managed services are accessible, and how you can optimize your approach. For more insights on related topics, check out this excellent resource and consider reading about social justice initiatives. Additionally, for further information on conflict management and dispute resolution, visit SHRM.