AWS is making it easier for start-ups to use its cloud services

A graphic image of a cloud set in a digital background.
(Image credit: Shutterstock/ZinetroN)

Amazon Web Sevices (AWS) is increasing the value of cloud credits available to eligible startups.

Effective from today (July 1), startups that have secured a Series A funding round within the past 12 months can access $200,000 AWS credits – double the $100,000 previously available.

The extra availability of credits that can be used for Amazon’s cloud computing resources forms part of the AWS Activate program, which is designed to foster innovation among early-stage companies that don’t have the financial resources to scale sufficiently.

AWS doubles startup cloud computing credits

According to CNBC, the announcement was communicated to venture investors via email this week. Recently appointed AWS CEO Matt Garman emphasized during a recent meeting with Silicon Valley founders that partnering with startups remains a core focus for the business.

Speaking about Amazon Web Services’ ideal customers, Garman confirmed that those utilizing artificial intelligence, particularly those with an aim of solving core global issues, remain a priority.

AWS also upped its credit expiry, from one year to three years, enabling startups to scale their businesses with more flexibility. 

An AWS spokesperson confirmed that 280,000 startups run on its infrastructure, including 96% of unicorns in AI and ML.

However, while the extra computing power is welcome news to many startups, many have criticized Amazon for using the scheme to build on its monopolization by enticing companies to use its services. Amazon’s cloud business accounts for around one-third of the entire cloud market, which equals the combined market share of both Microsoft and Google.

AWS isn’t alone, though. Microsoft also offers substantial incentives, including up to $350,000 in Azure credits for startups in programs like Y Combinator.

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Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

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