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Startups and Server costs

Published August 12, 2021
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I’ve been around a few different tech startups at this point and one problem I see very often is that at some point someone says lets make this multiplayer. If your not a programmer you probably don’t know why this can be a problem and if you are your probably cringing a little bit. So why is this such a big problem? One it’s a significant amount of work compared to a single player or single user. Two is that someone always says lets make this scalable and put it on the cloud so we don’t have to buy infrastructure. It’ll be cheaper right?

The answer is sometimes, rarely, or it depends. Without having a fully built prototype it’s difficult to figure out the computing power needed. The problem this creates is that scalable cloud based servers are often charged based off of how often the data is changed. Server costs can add up quickly. This high variable cost is not good for startups who often have limited cash reserves.

So what’s the solution? Buy a server? It can take specialized knowledge to set up and manage a server. However this is the best option for most start ups because the cost is predictable. There is the upfront cost of buying the server and then monthly electricity and internet. Short term it is more expensive but after a few months to a year it can actually become cheaper than renting cloud space.

Are there any other options though? Depending on the actual product there may be. Some games particularly PC games use the players computer’s as a server. This is a fantastic solution because the cost isn’t on the startup and while the cost is on the users it is so minor that they don’t see it as a cost.

If you’re creating a tech start up it’s worth considering if it really needs to be multiplayer. If it does make sure you do your research and have a strict budget. It is very easy to create a multiplayer or multiuser application that costs more to maintain per user than what you can make per user.

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