Auth budget planning: what to expect at different growth stages

Auth Budget Planning: What to Expect at Different Growth Stages

As your business grows, understanding how to manage your authentication (auth) budget becomes crucial. Whether you're a startup scaling up or an established enterprise looking to optimize costs, knowing what to expect at different stages of growth can help you make informed decisions. In this article, we'll explore how auth costs evolve as your Annual Recurring Revenue (ARR) increases, and when consolidation can pay off. We'll also touch on Bastionary, a self-hosted auth + billing + licensing + feature flags platform that can help streamline your auth processes.

Auth Costs at $1M ARR

At the initial stage of $1M ARR, your auth costs are relatively low. This is because you're likely still in the early stages of setting up your infrastructure and haven't yet reached a significant number of users. However, even at this stage, it's important to plan for auth costs as a percentage of your ARR. Typically, you can expect auth costs to be around 1-2% of your ARR. This includes costs for implementing auth solutions, maintaining servers, and any third-party services you might be using.

Key Insight: At $1M ARR, your auth costs are minimal, but it's crucial to plan for them as a percentage of your ARR to avoid surprises later on.

Auth Costs at $5M ARR

As your ARR grows to $5M, your auth costs will increase. This is because you'll need to scale your infrastructure to support more users, and you'll likely be investing in more robust auth solutions. At this stage, you can expect your auth costs to be around 2-3% of your ARR. This includes costs for scaling your servers, implementing more advanced auth features, and possibly integrating with other systems.

Warning: Don't underestimate the importance of scaling your auth infrastructure as your ARR grows. Failing to do so can lead to security vulnerabilities and a poor user experience.

Auth Costs at $20M ARR

At $20M ARR, your auth costs will be significantly higher. This is because you'll need to maintain a large-scale infrastructure to support your user base, and you'll likely be investing in advanced auth solutions like multi-factor authentication, biometric authentication, and other security measures. At this stage, you can expect your auth costs to be around 3-5% of your ARR. This includes costs for maintaining servers, implementing advanced auth features, and integrating with other systems.

Key Insight: At $20M ARR, your auth costs can be a significant portion of your overall budget. It's important to regularly review and optimize your auth infrastructure to ensure you're getting the best value for your investment.

When Consolidation Pays Off

As your business grows, there comes a point where consolidation can pay off. This means that by consolidating your auth infrastructure, you can reduce your overall costs while still maintaining a high level of security and user experience. One way to achieve this is by using a platform like Bastionary, which can help you streamline your auth processes and reduce the need for multiple third-party services.

Key Insight: Consolidation can help you reduce your auth costs while still maintaining a high level of security and user experience. Consider using a platform like Bastionary to streamline your auth processes.

Conclusion

Understanding how your auth costs evolve as your ARR increases can help you make informed decisions about your business. By planning for auth costs as a percentage of your ARR, you can avoid surprises and ensure that you're getting the best value for your investment. Additionally, by considering consolidation at different stages of growth, you can further optimize your auth infrastructure and reduce costs. Consider using a platform like Bastionary to help you achieve these goals.