Starting or running a tech start-up can be a roller coaster. There are ups and downs, and all kinds of surprises that come out of left field. One kind of surprise you don't want to deal with, however, is server down-time. After all, you're a tech start-up. Your business relies on your technology. So not only does a down-time make you look bad, but every moment that your applications or sites are down costs you money.
Of course, down-time can be caused by all sorts of things. But the most embarassing kind of down-time comes when you're over-capacity. Just think of how the fail whale has become the butt-end of so many tech-jokes.
More importantly, though, when downtime is caused by your applications being over-capacity, it's sends a signal that your business is not ready for success: you built it, they came, and now you have to turn them away. Consider how the only thing worse than no one showing up at your party, is too many people showing up and you not having enough refreshments for everyone.
Of course, the catch is that, as a start-up, you have to be prudent with your budget. Start-ups need to be careful with how they invest in their budgets because resources are scarce, and investing too much in one thing means there not being enough to get another thing up and going. In other words, erring on the side of caution is not an option.
So if you're a tech start-up that (1) relies on its web-based technology, (2) plans to experience several significant growth spurts during the next few years, and (3) doesn't yet have the resources to invest heavily into your hosting, you need to choose your hosting carefully. On the one hand, you need to be as cost-effective as possible. On the other hand, you need high availability (HA), and the flexibility to scale according to the needs of your resource-critical business applications and websites.
Consequently, cloud hosting is probably one of the best choices for tech start-ups. Cloud hosting lets businesses rent the resources of virtual servers, and then scale those resources on an as-needed basis as your traffic fluctuates. In other words, you can adjust your hosting package as you go. Many cloud hosting providers also offer you flexible billing so that you can pay only for the resources you use, a choice of operating system (Windows or Linux), and the ability configure and optimize that virtual server through an API or web-based interface.
Basically, by using a cloud hosting package, your business can save money by not investing more into its hosting than is necessary at any given moment, but still have access to all the benefits of cloud computing - such as scalability and enhanced server performance. This kind of versatility is ideal for a company that's tech- and web-reliant, but doesn't yet have the need to invest in comprehensive infrastructure such as a dedicated hosting package.