Taking along good ideas on a journey into the unknown: Start-ups often face many challenges on their way to becoming a successful business. But it’s during those early days when firms need to concentrate every moment and resource to making their ideas ready to bring to market.
Any advantage available to an entrepreneur can make the difference. But it doesn’t always have to be raising capital. The right IT resources can also give start-ups room to maneuver and grow. Capacity from the public cloud provides multiple advantages. Below are just three reasons why the cloud has become crucial to start-ups.
1. Calculating cloud costs: Do it right and you’ll save money
No matter if it’s servers, software or storage – companies can always tap exactly the cloud resources they need. Taking true advantage of this can dramatically lower a firm’s investment risk. “The key to success is in the booking tailored to what’s required,” says Frank Strecker, who leads Deutsche Telekom’s cloud business. “Anyone using cloud resources exactly like classic IT services, with servers running 24 hours a day, will pay for it in the end. But when they’re only used when they’re really needed, you can profit from greatly reduced costs.”
It’s a concept that’s gaining popularity – for example, with software development. Need large IT resources for complex testing? Simply book what’s required straight from the cloud and pay for them only as long as you actually use them. This method ensures your IT and costs mirror the growth of your business – a huge advantage for start-ups. The Open Telekom Cloud provides flexible computing and storage resources from certified German data centers that are billed by the hour.
Take, for example, the start-up Octopus Cloud. The Swiss firm is filling a true gap in the market with its new reporting tool for Microsoft SPLA licenses. To further develop their solution, the entrepreneurs are relying on the Open Telekom Cloud. “When our employees have an idea, they can simply switch on a server and try it out,” says Bruno Pauli, co-CEO and founder from Octopus Cloud. “When we’re done, we simply switch the server off again. And we’re only billed for the hours we actually used.”
2. Immediately available: The cloud adapts to growth
Even when a business idea seems great on paper, nobody really knows when it might take off. Scalable computing, storage and software resources from the cloud give you unlimited flexibility. Infrastructure as a service (IaaS) means your IT resources will also provide the perfect fit as your business develops. Should your idea fail, your IT costs will remain low. But if it blows up bigtime, you’ll be able to scale your resources accordingly – and even automatically, if so desired.
Maybe you need to ensure your online shop has the capacity to withstand the Christmastime crush. Or perhaps you quickly have to set up workstations with Windows and Office environments for new employees. Or even a firm using artificial intelligence (AI) to make complex complications requiring massive processing power. Cloud resources provide the necessary agility no matter what your business does.
“The added value is, in particular, that we are always able to deliver,” says Andreas Kulpa, Chief Executive Officer (CEO) and one of the founders of the start-up DATAlovers. Based in the German city of Mainz, the entrepreneurs have developed artificial intelligence that makes new customer acquisition for sales reps much more efficient. For their complex Big Data analysis, they rely on resources from the Open Telekom Cloud. “It doesn’t matter what time it is or how many customer inquiries come in: We always have exactly the computing resources required at that particular moment straight from the cloud.”
3. Fort Knox for data: Cloud resources from highly secure data centers
Data security and data privacy are two of the biggest challenges currently facing companies. This isn’t just true for start-ups, but also more established firms: These days, IT security and reliable handling of personal information has become vital to doing business. Here, too, IT resources from the public cloud show their competitive advantage: Anyone turning to a trustworthy cloud provider will always have access to the most up-to-date resources.
The Open Telekom Cloud is operated from certified, highly secure twin-core data centers in Germany. Data can also be processed and saved while encrypted upon request. It can be accessed either via the public Internet or an encrypted connection over a virtual private network (VPN), as well as a private connection based on multiprotocol label switching (MPLS).
The Open Telekom Cloud has also been certified with the Trusted Cloud Data Protection Profile (TCDP) 1.0. This confirms that a cloud provider adheres to the technical requirements to fulfill the European General Data Protection Regulation (GDPR).
“Of course, Deutsche Telekom simply has the best reputation in the industry. For us that was fantastic foundation to emphasize the trustworthiness of our service, as well as establish ourselves quickly and sustainably in the market,” says Patrick Palacin, founder and Chief Technology Officer (CTO) at the Munich-based start-up TeleClinic. Together with his colleagues Katharina Jünger and Prof. Dr. Reinhard Meier he developed a platform allowing patients to make virtual doctor visits online using a laptop, smartphone or tablet. “Trust is everything in the healthcare sector,” says Palacin. “That’s why data security, data privacy and the reputation of our provider were at the top of our list of requirements.”
TechBoost: €100,000 in resources from the Open Telekom Cloud
At the beginning of 2017, Deutsche Telekom initiated the start-up program TechBoost. The idea was simple: Start-ups with a software-based business model could pitch their concept to Deutsche Telekom. Successful applicants would receive €100,000 in credit for IT resources from the Open Telekom Cloud to grow their digital businesses further. They would also get help with marketing and sales from Deutsche Telekom. Now, just a few years later, more than 80 German start-ups have already qualified for the program. “Many start-ups without lots of capital face an uncertain future,” says Miriam Mertens, start-up expert for Telekom Deutschland. “The cloud takes a lot of the risk out the equation, because it allows for flexible IT tailored to how the business develops. Start-ups have access to IT resources that previously only financially powerful big firms used to have – the cloud enables start-ups to simply rent what’s necessary to secure their future prospects.”
Start-ups based in Germany with digital business models set for growth can apply online for Deutsche Telekom’s TechBoost program.
At a glance: the benefits of Open Telekom Cloud
- Security: The data are hosted in highly secure Telekom computing centres in Germany.
- Scalability: Computing power and memory can be ordered and set up online and adapted flexibly at any time.
- Pricing models: We offer you flexible and fixed contractual periods as well as a combination of both models.
- No vendor lock-in: Open Telekom Cloud is based on OpenStack, a freely available open-source standard. You can change the provider at any time.
- Individual configuration: CPU, RAM, storage, network – you can put a package together for yourself that matches your requirements to the optimum degree.
- IaaS for all: Open Telekom Cloud is extremely flexible and therefore suitable for companies of every size.