For many companies, cloud spend starts small. A few hundred here, a few thousand there. Then the product grows, users multiply, new features launch… and suddenly, you’re staring at a $40,000 bill with no idea where it came from. I’ve seen this happen to startups, scaleups and even seasoned mid-market leaders. And while the tech may differ, the pattern is the same.
This article isn’t a warning to early-stage founders or a deep dive for enterprise teams. It’s a call to action for mid-market businesses — the ones caught between credit-fueled startups and resource-rich enterprises. You’re building fast, chasing growth and relying heavily on the cloud to do it. But unless you’ve taken a hard look at your infrastructure, there’s a good chance you’re overpaying.
The Mid-Market Blind Spot
Startups often benefit from generous cloud credits. Enterprises have dedicated cloud architects and procurement departments. But mid-sized digital companies? They’re expected to move fast, yet rarely have the in-house expertise to track, evaluate or optimize their cloud usage.
We’ve seen this firsthand at STRV, working with a variety of companies — teams that are sharp, successful and scaling. But many were unknowingly burning money on underused resources, inefficient data practices or simply not taking advantage of the cost-saving programs available to them.
One company we know was spending upward of $100K per month on one of the major clouds — with no pre-committed resources. They didn’t lack the technical skill to build their product. But no one had paused to ask: Could this cost less?
The Illusion of Simplicity
Cloud pricing looks straightforward. Until it isn’t.
Most people assume it’s like renting a server. You pay for what you use. But the real picture is far more complex. Every byte of data transferred between services, every outgoing request, every bit of ingress or egress traffic… it all adds up.
If your app includes video, high user interaction or complex microservices, bandwidth costs can spike without warning. Even databases — which seem like a fixed cost — can ramp up if you're not watching storage tiers or performance settings.
We’ve had engineers admit that, even with experience, calculating cloud costs feels like a guessing game. And when companies are scaling quickly, it’s easy to deprioritize cost planning until the invoice arrives.
When to Act — and Why
Let’s be clear: if your company is still finding product-market fit and spending $1–2K/month, your focus should be on building. Cloud optimization doesn’t move the needle yet.
But if you’re spending $20K, $30K or $50K per month and you haven’t reviewed your setup in the past 6–12 months? Then it’s not just a good idea — it’s a responsibility.
In our experience, companies in that range can often cut 20–30% of their monthly cloud spend with a few targeted adjustments. Sometimes, even more. And unlike hiring freezes or marketing cuts, this kind of savings doesn’t hurt growth — it funds it.
The Low-Hanging Fruit
The good news? Optimization doesn’t have to be painful. Here are a few of the simplest (and most overlooked) ways to start saving:
- Prepaid or Committed Use: Locking in a baseline level of usage with providers like AWS or GCP can cut compute and storage costs by 30–50% on average — and in some cases, even up to 70%. If you have predictable growth, this one’s a no-brainer.
- Clean Up the Clutter: Old test environments, outdated datasets, unused services, over-provisioned instances — they all add up. Fast-moving teams often forget what they’ve left running in the background.
- Use a CDN: For media-heavy apps, routing static content through a content delivery network reduces both bandwidth costs and latency.
- Start with a Cloud Audit: Not sure where to begin? An audit can quickly identify where you're overspending — and how to fix it.
A Strategic Advantage — and a Greener One
There is another reason to care, no matter the company size: efficiency is good business, but it’s also good stewardship.
Cloud data centers are massive energy consumers. The more unnecessary resources you use, the larger your environmental footprint. Thankfully, major cloud providers are investing in renewables. But the onus is still on companies to build and scale responsibly.
We’ve seen how infrastructure tweaks can lead to major gains. In late 2024, AWS introduced new data center components that cut mechanical energy use by up to 46% and reduced construction-related carbon by 35%. Even if you’re not operating at AWS scale, smarter cloud usage still adds up.
The Bottom Line
Cloud optimization won’t win you press. It’s not a splashy feature or a viral campaign. But it might fund both.
It’s easy to let cloud spend become background noise — just another cost of doing business. But unlike headcount or ad spend, these are recurring, essential costs. You can’t pause them. You can’t fire them. They’re what keeps your product running.
With the right timing, mindset and support, cloud costs can become a source of competitive advantage.
At STRV, we’ve helped teams uncover hidden inefficiencies and cut cloud costs without compromising speed or scale. Whether it’s a one-time audit or ongoing guidance, sometimes a second set of eyes makes all the difference.
So here’s my challenge to fellow founders and business leaders: Ask your team one question this week — are we getting what we pay for in the cloud?
You might be surprised by the answer.
