How Startups Can Leverage AWS for Better Backend Discounts

Navigating the tech landscape has been a fulfilling journey for me. My experience ranges from roles at renowned gaming giants like Electronic Arts to agile startups like Loop Media.

Every product development phase brings its own set of learnings. This process inherently shapes your preferences for certain tools and services, tailored to the specific tasks you face.

By the time you're gearing up for your next platform, you've often established a set of trusted tech tools. If your product garners attention and scales post-launch, the instinct to seek discounts from tech providers becomes a focal point.

Yet, many startups grapple with negotiations. The common sentiment? Feeling like a small fish in a vast tech ocean. However, there's a potential game-changer: AWS. Leveraging its vast and cohesive offerings might just open the door to significant savings in your business, as it did for ours. Our experience was so transformative that I was compelled to put down these words so others could get inspired to explore the possibilities at their own firms- especially those suspecting they need a migration, but unsure of which direction to turn, and what to expect out of it if it exceeds expectations.

Our Initial Tech Stack and The AWS Transition at Loop

In the early days of LoopTV®, we integrated technologies we were most familiar with. Let me share the tech tools we initially used, and the AWS services we transitioned to. It's important to note that our migration to AWS wasn’t based on the individual superiority of its products, but rather their cohesive integration:

• Database Management: Our most significant move was shifting from Percona MySQL DB clusters to Amazon Aurora Serverless Auto-Scaling ACUs. The transition helped us identify issues with our previous setup, thanks to the Performance Insights tools of AWS.

• Core API Services: Post our database transition, moving our Core API services from Google Cloud Compute Engine to Amazon EC2 was the next logical step.

• Bandwidth & Media Storage: A substantial cost-saving was achieved by transitioning from Akamai to Amazon S3 and Amazon CloudFront.

• Media Encoding: Our in-house Mac mini farm was replaced by AWS Elemental MediaConvert, streamlining our content intake from various sources like music labels, TikTok, and World Surf League.

• Email Services: We switched from Twilio SendGrid to Amazon Simple Email Service.

  
  

Overall, we successfully migrated over 12 services to AWS, and we remain excited about exploring even more of their offerings.

Migration Assistance from AWS

Once we decided on AWS, the supportive team from AWS Startups collaborated with us closely. We had regular weekly meetings, where they provided invaluable support and architectural

guidance throughout our migration journey. Such high-level support is something I've only experienced at larger companies, making it even more appreciated as a startup founder.

Effective Negotiation Strategies with AWS

A crucial aspect to remember before committing to a company like Amazon is understanding their sales dynamics. Here are a few tips to help you negotiate better deals:

• Bundling Works: The more services you consolidate, the better discounts you're likely to receive.
• Timing is Everything: Negotiating towards the end of a quarter or year can yield better deals, as sales teams are often keen to hit their targets.
• Competitive Offers: If you have offers from other providers, AWS might be more inclined to match or better them.

A Tip Before You Commit

Look into the AWS Activate program. If eligible, you can apply for up to $100,000 in AWS credits before signing any contract. These credits can be beneficial when you start consolidating services with Amazon.

In conclusion, while the tech landscape can be vast and sometimes intimidating for startups, strategic decisions like consolidating services can lead to meaningful savings and support. AWS has been a game-changer for Loop Media, and it might be for your startup, too.

- By Liam McCallum, Chief Product Officer, Loop Media, Inc.

About Loop Media

Loop Media, Inc. (“Loop Media”) (NYSE American: LPTV) is a leading digital out of home (DOOH) TV and digital signage platform optimized for businesses, providing free music video, news, sports, and entertainment channels through its Loop TV service. Loop Media is the leading company in the U.S. licensed to stream music videos to businesses through its proprietary Loop Player.