As global macroeconomic conditions worsen and funding slowdown continues, Indian startups are cutting their spends on an integral part of tech businesses – cloud storage – by renegotiating contracts with service providers like AWS and Google Cloud, multiple startup founders told ET.
Many of these companies have slashed cloud expenses by 20%-30% while some growth stage startups such as ecommerce platforms Meesho and Dealshare have brought down their cloud expenses by 50%, under pressure to control their cash burn, they said.
This has led to the top three cloud service providers – Amazon Web Services (AWS), Google Cloud Platform and Microsoft Azure – waging pricing wars to lure startups onto their platforms in the current downturn.
Over the past months, several startups have been approached by AWS rivals to switch over for lesser pricing, multiple founders who have been in talks with them confirmed.
In some instances, founders are using pricing quotes received from Google Cloud and Microsoft Azure to renegotiate discounted contracts with AWS, their primary cloud service provider, said one of the founders.
Cybersecurity ecosystem
Cybersecurity Ecosystem
India’s cybersecurity ecosystem continues to expand rapidly as enterprises accelerate cloud adoption, AI integration, and 5G infrastructure deployment. Industry reports in 2026 estimate that India faces a cybersecurity talent gap approaching one million professionals, with cloud security, AI security, and telecom infrastructure protection emerging among the fastest-growing specializations.
Demand for cloud security expertise continues to rise as organizations migrate workloads to multi-cloud and hybrid environments. Businesses increasingly require specialists in cloud-native security, identity and access management (IAM), threat intelligence, compliance, and AI-driven cybersecurity operations. Reports indicate that shortages in cloud-security and mid-to-senior cybersecurity talent remain significant across India’s technology sector.
An extensive push toward reskilling and upskilling the workforce is now considered essential for future-proofing telecom, enterprise, and cloud-security operations. Organizations are increasingly prioritizing certifications, AI-security capabilities, data protection expertise, and advanced cyber-defense skills to address evolving digital threats.
Indian telecom operators are also increasing investments in network security as 5G expansion, IoT adoption, edge computing, and AI-driven infrastructure create new attack surfaces and operational vulnerabilities. Cybersecurity has become a strategic priority for telecom providers, enterprise networks, and critical infrastructure operators.
Despite rising investment, building robust cybersecurity teams remains a major challenge for telecom companies and enterprise organizations due to persistent talent shortages, rapidly evolving threat landscapes, and increasing demand for specialized cloud and AI-security expertise.
“Even if we do not talk about 5G (specifically), the security talent in general in the country is very sparse at the moment. We need to get more (security) professionals in the system”
Bharti Airtel, for example, has been preparing for 5G roll out by upskilling its professionals and offering them certification courses such as CCNA (Cisco Certified Network Associate) and CCNP (Cisco Certified Network Professional). The courses are offered based on skill and eligibility level free of cost.
| Operational Category | Common Cost Issue | Optimization Strategy |
|---|---|---|
| Cloud Infrastructure | Oversized environments and unpredictable billing | Renegotiating usage-based pricing |
| Payment Processing | High transaction fees and hidden costs | Switching to affordable merchant services |
| SaaS Platforms | Redundant software subscriptions | Vendor consolidation |
| Data Storage | Unused storage resources | Storage optimization |
| Merchant Accounts | Long-term inflexible contracts | Reviewing provider agreements |
| Software Licensing | Overlapping platform costs | Subscription audits |
Why Affordable Merchant Services Matter for Startups
As startups scale, payment processing expenses become more significant. Businesses processing larger transaction volumes often discover that outdated pricing structures increase operational overhead.
Affordable merchant services help businesses reduce recurring payment-related expenses while maintaining scalable payment infrastructure.
Key benefits include:
- Lower processing costs
- Transparent pricing structures
- Reduced recurring service fees
- Simplified billing models
- Flexible contract terms
- Scalable payment systems
This operational approach aligns with the same cost-efficiency goals driving cloud infrastructure renegotiations.
| Vendor Category | What Startups Review |
|---|---|
| Cloud Providers | Usage pricing and scalability |
| Merchant Services | Transaction fees and hidden costs |
| Payment Gateways | Gateway charges and integration costs |
| SaaS Vendors | Redundant subscriptions |
| Infrastructure Providers | Contract flexibility |
| Payment Processors | Interchange and processing fees |
How Startups Are Evaluating Vendor Agreements
Businesses are increasingly auditing operational vendors to identify unnecessary costs and improve financial predictability.
Common Evaluation Areas
Companies focused on operational sustainability increasingly compare vendors based on long-term cost efficiency instead of short-term promotional pricing.
Affordable Merchant Services Support Sustainable Growth
Startups reducing infrastructure costs often seek payment processing providers that align with broader financial optimization goals.
Affordable merchant services support:
- Predictable operational expenses
- Reduced transaction overhead
- Improved cash flow management
- Simplified vendor management
- Lower recurring operational costs
- Scalable payment processing infrastructure
Businesses are prioritizing providers with transparent pricing models and flexible service structures to improve operational control.
Startup Cost Optimization Is Expanding Across All Business Operations
Cloud cost reduction is no longer treated as an isolated operational initiative. Startups are extending cost-control measures across all recurring vendor relationships.
This includes:
- Payment processing optimization
- Merchant account restructuring
- Software subscription reduction
- Infrastructure consolidation
- Vendor renegotiation
- Operational expense forecasting
The objective is long-term operational sustainability and improved financial efficiency.
Frequently Asked Questions
What are affordable merchant services?
Affordable merchant services are payment processing solutions designed to reduce transaction costs, recurring service fees, and operational payment expenses for businesses.
Why are startups renegotiating cloud service agreements?
Startups are renegotiating cloud contracts to reduce operational overhead, improve profitability, eliminate unnecessary expenses, and create more predictable infrastructure costs.
How do affordable merchant services help startups reduce costs?
Affordable merchant services help businesses lower processing fees, reduce hidden costs, improve pricing transparency, and simplify recurring operational expenses.
Why are recurring vendor expenses becoming a larger focus for startups?
Economic pressure, investor expectations, and operational efficiency goals are forcing startups to reevaluate all recurring expenses tied to infrastructure, software, and payment processing.
What operational costs are startups commonly optimizing?
Businesses frequently optimize:
- Cloud infrastructure
- Payment processing fees
- Merchant account expenses
- SaaS subscriptions
- Data storage costs
- Vendor agreements
How do startups evaluate merchant service providers?
Businesses commonly compare:
- Pricing transparency
- Processing rates
- Contract flexibility
- Recurring service fees
- Scalability
- Payment infrastructure support
Why does vendor competition matter for startups?
Competition among cloud providers and merchant service providers creates stronger negotiating leverage for startups seeking lower operational costs and improved contract terms.
How does payment processing optimization relate to cloud cost reduction?
Both strategies focus on reducing recurring operational expenses, improving financial efficiency, increasing scalability, and strengthening long-term business sustainability.
