ON THIS PAGE:
—The pre-cloud era [When software was physical] —the cloud revolution [Speed, but complexity] —The emergence of DevOps —How platform engineering + AI change everything
TL;DR
Before the cloud, building software meant buying physical servers, manually installing updates, and enduring long delays to scale or fix issues. It was slow, costly, and physically exhausting.
The cloud then brought speed and flexibility, but also complexity, security gaps, and compliance headaches.
DevOps improved collaboration and automation, but required hard-to-find expertise and still left critical issues unsolved.
Now, platform engineering + AI are redefining how startups build and scale by standardizing infrastructure, automating security and removing complexity. With Sequolia’s AI agent acting like a virtual CTO, even small teams can move fast, stay compliant, and scale like pros without needing a massive engineering team.
—The pre-cloud era [When software was physical]
Picture this: A fast-growing B2B SaaS company is onboarding a new enterprise customer. But the night before launch day, things go wrong:
This was normal before cloud computing and literally physically draining. Imagine a world where: Software updates were mailed to clients on CDs, IT teams manually installed programs on every machine and scaling meant physically buying more servers—which took weeks or even months.
Era | Software Delivery | Key limitations | Operational pain points |
1980s | Floppy Disks |
No updates, security risks, manual installation, zero patching (fixing bugs or issues after it's been installed) |
• Hardware failures required on-site fixes |
1990s | CDs, Postal Services | Slow and costly distribution, long update cycles, slow bug fixing | • Bug fixes delayed by physical shipping • Scaling meant buying and installing physical servers manually |
Early 2000s | Hosted Software (ASP) | Limited scalability, expensive hardware, high maintenance burden | • Scaling required months and big upfront purchases • No elastic infrastructure (Systems that automatically grow or shrink based on demand—like cloud services that scale up or down) • Infrastructure outages = total downtime |
—The cloud revolution [speed, but complexity]
The rise of cloud providers like AWS, Azure, and Google Cloud in the 2010s was a game-changer. Suddenly, startups didn’t need to buy physical servers or worry about capacity planning. The cloud solved some of the biggest problems in tech:
But as deployment speed accelerated, complexity quickly followed.
“Works on my machine” issues – Code that ran perfectly in the development environment (where developers build and test features) often broke in the production environment (the live system used by customers), due to mismatched configurations.
Operational bottlenecks – Developers had to wait days for ops teams to provision infrastructure—that is, to set up servers, databases, or cloud services needed to run the application.
Security left behind – In the race to ship faster, security was often bolted on at the end—leading to vulnerabilities, breaches, and costly cleanups.
Compliance chaos – Enterprise buyers demanded detailed documentation, security audits, and regulatory proof, which many startups weren’t ready for.
For years, 70% of IT budgets were spent on maintenance rather than innovation (Gartner). SaaS startups, in particular, faced an uphill battle: it took 6-12 months just to set up infrastructure before they could even start shipping features. This slowed time to market and drained resources that could have been used for growth.
To break free from these constraints, the industry started evolving fast. A series of new approaches and tools emerged, aiming to streamline delivery and reduce friction.
Before virtualization, companies had to buy and maintain physical servers, often over-provisioning to handle peak demand (the highest level usage the system might experience during busy times). That meant buying more servers than they usually needed, just to prepare for occasional traffic spikes. VMs reduced hardware costs by allowing multiple virtual servers to run on a single physical machine, making resource use more efficient and flexible.
→ However, they still required manual scaling and management, making them a partial solution.
Traditional IT operations teams were separate from developers, creating bottlenecks. Developers wrote code, then "threw it over the wall" to ops teams, who had to deploy and maintain it. This led to misalignment, slow releases, and unpredictable failures.
DevOps emerged as a new philosophy, integrating development and operations into one collaborative process. It emphasized:
→ But there was a catch: DevOps required highly skilled engineers who understood both software and infrastructure management. Many startups struggled (and still are struggling) to find and retain this kind of talent, making DevOps adoption uneven.
DevOps gave birth to Continuous Integration/Continuous Deployment (CI/CD) pipelines, allowed companies to automate code testing, integration, and deployment, significantly reducing time-to-market. Startups could ship updates daily or even multiple times per day, instead of waiting weeks for a major release.
→ But there was a gap: Security wasn’t built into early CI/CD pipelines. Instead, security reviews happened after deployment, often delaying releases or exposing applications to vulnerabilities. This led to breaches, compliance headaches, and additional costs.
—How platform engineering + AI change everything
With these challenges piling up, the promise of DevOps hit its limit. That’s when platform shift began↗.
How it started
Over a decade ago, companies like Netflix, Shopify, and Spotify faced the same issues now hitting modern SaaS startups. DevOps didn’t scale. Engineers burned time debugging infrastructure. Security lagged behind.
Their solution? Build a platform layer—a dedicated system between product teams and raw cloud services. These platforms included:
This wasn’t just DevOps 2.0—it was a shift in mindset: treat infrastructure like a product for your developers, not a one-off project.
How it’s going [Evolution & Popularization]
In the last 3–5 years, platform engineering has gone mainstream. More companies adopted platform engineering principles, and entire communities formed around this approach. Once reserved for tech giants, it’s now within reach of every startup—thanks to shared playbooks, open-source tools, and companies like Sequolia.
But we’re not stopping at platforms. The next leap? AI-powered infrastructure agents.
At Sequolia, we’re building an AI agent that acts like a virtual CTO—automating routine infrastructure tasks, continuously improving performance, and enforcing security best practices behind the scenes. It learns over time, optimizes based on usage patterns, and ensures the platform evolves as your business scales.
So even a two-person founding team can operate like a 20-person org—shipping faster, staying compliant, and focusing on growth. Here’s what that means for you:
Platform Engineering + AI isn’t just about tech—it’s about unlocking growth. Startups can ship faster, scale smarter, and stay secure without hiring a CTO early on or an army of DevOps engineers.
Eager to learn more?
Read The Platform Shift: Adapt or Get Left Behind or let's book a call! ↗