Oof, that sucks and I feel for you. That said... > setting up in a new region would be complicated for us. Sounds to me like you've got a few weeks to get this working. Deprioritize all other work, get everyone working on this little DevOps/Infra project. You should've been multi-region from the outset, if not multi-cloud. When using the public cloud, we do tend to take it all for granted and don't even think about t…
I'm totally on board with the idea of being scrappy and taking shortcuts in order to get to PMF as soon as possible. However, it seems the proof is in the pudding here. If you can't service customers due to lack of compute resources, you can't get to PMF.
Also, yes there are certain infrastructure and network topologies that would absolutely be overkill for a young startup. I don't think multi-region is one of those things. I don't have experience with Azure directly, but on every other cloud providers, going multi-region is not something that requires huge amounts of time or resources. You just need to be mindful of it from the outset. And if you decide not to be, then at least be intentional and conscious about the risk and have a plan in place for what happens when you get bit by deciding not to go multi-region.