Whether you’re building your MVP, launching your SaaS product, or scaling your infrastructure, choosing a cloud computing provider is one of the most important technical decisions you’ll make. With so many options and unfamiliar terms, it can feel overwhelming. This guide breaks everything down so you can make the right call for your startup, without needing a PhD in cloud architecture.

Cloud computing essentially means running your software, apps, and data on someone else’s servers (typically accessed over the internet) rather than setting up your own hardware. This allows you to rent computing power, storage, databases, and other infrastructure on-demand from big providers like Amazon Web Services (AWS), Google Cloud Platform (GCP), Microsoft Azure, IBM Cloud, and DigitalOcean. It enables rapid launches, flexible scaling, and a cost-efficient way to operate without upfront infrastructure investment.

When choosing your provider, you have to first have a clear idea of what it is your startup actually needs. Many of the cloud providers offer equivalent services, with differences being in small technical details. In order to pick between them, you should first start with your requirements. Ask:

If you’re not the one actually working on the technical side of things, be sure to include your developers in this process. 

Example: A pre-Series A startup is building a HIPAA-compliant, AI-powered voice assistant for clinicians. With a small technical team and a focus on real-time transcription and natural language processing, they need robust AI/ML tools, managed infrastructure, and autoscaling compute—all while meeting strict security and compliance requirements. Because they rely heavily on Google APIs and tools like TensorFlow, and plan to expand internationally, Google Cloud Platform (GCP) is the best fit. GCP offers services like Vertex AI and Cloud Speech-to-Text, supports HIPAA compliance, and provides generous startup credits through its Google for Startups Cloud Program.

Here’s a high-level look at the major players and what they’re best at:

• AWS: Ideal for startups that need scalability and a wide range of tools. Offers over 200 services, but the learning curve can be steep.
• GCP: Great for startups focused on machine learning, analytics, or working with large datasets. Simple UI and excellent AI tools.
• Azure: Best for startups working with Microsoft technologies or selling into the enterprise. Strong hybrid cloud features.
• IBM Cloud: A fit for regulated industries like finance or healthcare, with powerful compliance and legacy support.
• DigitalOcean: Perfect for solo developers or early-stage startups. Easy to use, quick to deploy, and predictably priced.

For a more in-depth look at each of these cloud providers, check out our full reviews. 

Most cloud services use a pay-as-you-go model, charging by the second or hour. Some offer Reserved Instances for long-term savings. Most major providers also have free tiers so you can try things out with little risk.

To give you a ballpark idea, here’s what a simple MVP might cost:

• VM for backend ($20–$50/month): This covers a general-purpose virtual machine (like AWS EC2 t3.small or a DigitalOcean Droplet) suitable for running your application backend, API, or simple logic.
• Object storage ($5–$15/month): This typically gets you around 100–300 GB of object storage (e.g., on Amazon S3, Google Cloud Storage, or DigitalOcean Spaces), enough to host user-uploaded images, documents, backups, or other media files.
• Managed database ($15–$30/month): You can run a managed PostgreSQL, MySQL, or MongoDB instance with automatic backups, scaling, and monitoring included.
• Bandwidth ($10–$25/month): Covers outgoing traffic (data sent to users) up to around 100–300 GB, depending on your provider and region.

Total: ~$50–$120/month

These estimates vary depending on the provider, location, and specific service configuration, but they give a solid foundation for budgeting early-stage cloud infrastructure.

Cloud providers offer generous credit programs to startups:

• AWS Activate: Up to $100K in credits
• Google for Startups Cloud: $2K to $350K based on your stage
• Microsoft for Startups: Up to $150K in Azure credits
• DigitalOcean Hatch: Up to $100K in credits
• IBM Cloud for Startups: Up to $120K in credits and technical support

These can stretch your runway significantly, sometimes covering your cloud costs for a year or more.

To learn more, check out our article on qualifying for cloud credit programs.

Cloud discount providers help companies reduce their cloud infrastructure costs without requiring them to change their code, architecture, or cloud provider. These platforms act as intermediaries between startups and services like AWS and Google Cloud, using financial tools like Reserved Instances, Savings Plans, and group purchasing power to unlock better pricing than most startups could access on their own.

Examples of Cloud Discount Providers

CloudKeeper:

Provides guaranteed AWS savings (15–25%) by managing Reserved Instances at scale and bundling in FinOps dashboards and support.

Instead of choosing blindly, try setting up a small test project on one or two platforms. This doesn’t need to be a full production deployment, just enough to simulate what you’d actually use day-to-day. For example, spin up a virtual machine, deploy your backend, connect it to a managed database, and upload a few files to object storage. You can also test out common developer workflows like CI/CD pipelines, setting up staging environments, and monitoring usage.

Pay close attention to the user interface, documentation, and support channels. Is it easy to navigate the dashboard? Does the provider make it simple to configure and deploy services? Are costs easy to track? If your team is more technical, you might care about CLI tools or API integrations. If your team includes non-technical founders or designers, the overall experience might matter more.

This kind of testing gives you firsthand experience with the platform’s strengths and quirks, which can help you make a confident, informed decision before investing significant time or money.

When choosing a cloud provider, focus on your team’s technical comfort level, your product’s needs, and your budget. DigitalOcean is great if you want something fast and simple. GCP excels at AI and data. Azure is ideal if you’re deep into the Microsoft ecosystem. IBM Cloud shines in compliance-heavy spaces. AWS offers the most power and flexibility for ambitious growth.

There’s no one-size-fits-all answer. Fortunately, cloud providers make it easy to start small and switch later. Focus on what you need today, use startup credits to experiment, and evolve your setup as your startup grows.