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Development of native software for cloud architecture

Petr Svoboda



Cloud architecture

Company founded



>1.000.000 EUR


  • Cost reduction
  • Reporting from accounting data

Accounting was not structured to enable suitable reporting to management and subsequently to investors. A cost center structure with corresponding responsibility for costs in individual centers was not established.

The company found itself in a situation where, after the initial large expansion of the team (both product and sales), it needed to rationalize the cost structure and extend the runway because the increase in costs was not accompanied by revenue growth. At this stage, due to the aforementioned, we could rather speak of an increase in expenses compared to revenue growth.

The division into centers, revenue and cost categories, and consistent adherence to this reporting structure enabled a detailed overview of the status and development of individual cost categories and responsibilities for various parts of the company.

Another positive aspect of this change is the possibility of easily tracking sales and other metrics. For example, the development of MRR, costs of acquiring individual clients, and others.

Individual cost categories were thoroughly discussed with management across centers. As is often the case with similar companies, only with such a structured approach were a number of smaller regular expenditures for services found that were essentially not being utilized.

But it was not only these items. A target was set with management for the monthly amount by which total costs would be reduced. This was achieved within a few months. Costs that were not essential for operation and further development gradually decreased to almost zero. Based on overhead costs, operational costliness was reduced by approximately 33% over three quarters.

This helped the company extend its runway by several months and rationalize its operations for the future.

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