Why SMEs and start-ups rent servers!

In this blog post, we show what requirements agile companies have for their IT infrastructure and why it only makes sense in very few cases today to operate their own servers on site and why many prefer to rent their servers.

Growing start-ups, SaaS providers on an expansion course and innovative software developers depend on their IT infrastructure working from day 1 after the company or team is founded so that new products can be tested and further developed. Scalability has become a buzzword in the start-up scene in recent years - and rightly so. Only if the business model and IT infrastructure are scalable can new customers be continuously acquired and the position on the market improved.

What do agile start-ups expect from their IT infrastructure?

Company size, mission, industry, the scope of the online project and portfolio all play an important role in providing the appropriate IT infrastructure. While stability, reliability and security of the IT infrastructure are usually must-have criteria, the expectations regarding scalability, flexibility and price-performance ratio often differ massively. Newly founded companies, SaaS providers and software developers usually need IT infrastructures that are immediately available so that applications can be tested, prototypes realized and products further developed.

Here become the requirements of start-ups, SaaS providers and development teams for IT infrastructure in brief:

• Expandable and scalable: For growing businesses, it is essential that the IT environment can be expanded within a very short time. Reasons for this can be new customers, additional projects or the hiring of new team members.
• Flexible: Work where and when you want - the possibility of remote work can be a great advantage when recruiting new employees. For this, it must be possible to access applications at any time, from anywhere in the world and with multiple end devices. In surveys conducted years before the outbreak of the pandemic, many digital natives said that flexible working hours and the possibility of remote work played a non-negligible role in their choice of employer.
• Cost-efficient: In addition to scalability and flexibility, the price/performance ratio is one of the most important criteria when building the right IT infrastructure. Cost savings are often one of the main reasons why cost-conscious businesses decide against on-premise servers and for cloud migrations.
• Stable and reliable: It is essential that applications and IT environments are always available. This is the only way to provide both end customers and the development team with a functioning working environment.
• Sure: It is essential to protect the company's IT from hacker and cyber attacks and to protect customer data from illegal access.

  
  However, application and IT environment requirements can change quickly in growing start-ups and SMEs, depending on the order situation or team development. The highest scalability is associated with cloud-based servers: if a small business grows to become a medium-sized company, new servers and software do not have to be purchased at every milestone (unlike with the development of on-premise servers). With cloud servers, more computing power can be activated within minutes. A cloud-based server or cloud server is a virtual server located in a physical data center. An external partner takes care of the provision of cloud hosting and provides customers with the necessary resources. The IaaS provider takes care of possible security problems and takes preventive measures.

Rent a server: On-premise or cloud-based?

In the past, on-premise infrastructures made sense for static IT environments that had not been adapted for years. Today, however, every industry requires agility that can only be achieved with the right IT environment. If companies have fewer than 500 employees, in most cases it is a waste of time and money to invest valuable resources in an in-house IT infrastructure. Instead, many companies rely on cloud services and obtain storage repositories for their applications from professional hosting companies. Instead of stockpiling services in their own server room and having little room for expansion, cloud services are used to obtain tailor-made services from an external provider.

In contrast to the operation of your own servers, no hardware has to be set up when purchasing cloud services. Regular hardware revisions and the permanent assurance of correct physical conditions for server rooms such as air conditioning and ventilation are no longer necessary. There is no longer any hardware that has to be renewed every five to seven years, saving time and costs. Instead of a large one-off expense, cloud services provide services on a monthly model. Just as with physical servers, companies can also know where their data is located and what security precautions are in place by purchasing cloud services.

Advantages of renting servers in the cloud for start-ups, SaaS providers and developers

The requirements for the application and IT environment can change quickly, especially in growing start-ups, depending on the order situation or team development. One of the biggest advantages of cloud-based servers is their high scalability: If a small business grows to a medium-sized company, new servers and software do not have to be purchased at every milestone. With cloud servers, more computing power can be activated within minutes. Cloud storage space is usually billed monthly, so there is no need to make large advance payments. Thanks to an attractive pay-as-you-go payment model, a cloud server only pays for the resources actually used.

The Cloud provider takes care that applications run stable and reliable and you can always access the application or important data. Access on the leased cloud resources is available from anywhere in the world and at any possible, the only requirement is an Internet connection. server in the Cloud can be configured within minutes and are available without setup fee provided. Thanks to reliable hosting, software developers can use the devices to access all files and new applications, and to create new uncomplicated testing. The cloud is accessible around the clock, which allows flexible working hours and minimizes downtime. So your team can also reach deadlines far away from the usual workplace.

Also for security is taken care of: With a cloud-based infrastructure you have to no more worrying about cyber security and protection from Hacker attacks. In addition to integrated security programs, there are often automatic recording, continuous operation and emergency planning in the Packages from cloud providers included. The external partner also takes over the responsibility for software as well as hardware and carries out regular patching of systems, which minimizes safety risks and provides the best possible ensures the functioning of the systems.

The right IaaS provider for agile companies

Only with the right cloud concept can the potential of cloud computing be fully exploited. We elicit the individual needs of our customers in a personal conversation. How much performance is actually needed? What security measures are required? Is the IT infrastructure to be expanded and extended in the foreseeable future? Do adjustments have to be made regularly? Are there load peaks? What about the IT budget? These questions need to be answered when creating a customised IT concept for start-ups and SaaS providers before the various forms of server rental become an issue. Our team of consultants has experience in supporting growing businesses, knows the Swiss SaaS landscape and will work with your team to build the right IT infrastructure so that you can test and further improve your products, provide the best possible support to customers and gain market share.

When choosing an IaaS provider, the company location should also be taken into account. In times of data leaks and hacker attacks, most companies want to know where their data is stored and who they are effectively renting the server from. The majority of hyperscalers have their headquarters in the USA. Access to data, as is practised for example by US companies without judicial control by means of the American Patriot Act, is not permitted in Switzerland. Local providers comply with Swiss data protection laws and can therefore guarantee the highest data security standards. Our infrastructure is located in ISO-certified data centres in the cantons of Aargau and Zurich. All customer data is subject to Swiss data protection laws and we can therefore guarantee the highest data protection standards.

Conclusion

Start-ups, SaaS providers and software developers typically need IT infrastructure that is immediately available so that applications can be tested, prototyped and products can be developed further. The right IT environment for agile companies is characterized by scalability, flexibility and cost efficiency. It is also essential that the application is always available - from anywhere in the world and from any end device. This is the only way to provide both the end customer and the development team with a functioning working environment.

Cloud services or server rentals enable the uncomplicated expansion of the portfolio without investment costs. Adjustments and extensions can be carried out at the click of a mouse, so that changes in the company or team can be reacted to quickly. Access to the rented cloud resources is possible from anywhere in the world and at any time, the only requirement is an internet connection. Cloud storage space is often billed monthly and therefore no large upfront payments need to be made. Obtaining cloud server services from an external partner and monthly billing based on effective usage allows flexibility and is easy on the budget. The IaaS provider ensures that the IT environment can be accessed at any time, creating a productive working environment for entrepreneurs, SaaS providers and developers.