Cloud utilization optimization firm Spotinst has raised $2 million in a Series A funding round led by PICO Venture Partners, the startup announced Tuesday. Spotinst provides an IaaS platform which uses advanced machine learning to optimize cloud deployments on AWS.
The three founders of Spotinst came together while serving in the Israeli Defense Force’s elite technology unit MAMRAM over a decade ago. They managed DevOps and software engineering teams and built and managed large scale cloud architectures in the private sector after being discharged, and picked up key experience with big data ecosystems.
From this background they built an algorithmic platform to predict and automate switching between servers, including managing the bid process, to provide stable cloud capacity at the lowest possible cost. It features a price prediction algorithm, cloud metrics monitoring and atypical trend detection, optimal infrastructure utilization, automatic recovery, and cost-aware action. Its customers typically achieve 50 to 80 percent cost reductions, Spotinst says.
“Leveraging the benefits of the Spot markets and running cost-aware applications can be a complicated, costly and frustrating process, even for mature companies with experienced DevOps teams and extensive cloud experience,” said Amiram Shachar, CEO of Spotinst. “Spotinst allows any company to outsource the management of the Spot Instance market, enabling them to focus on the core elements of their business.”
Spotinst’s API and UI provide high-level reporting and a granular view of cloud deployments to show clients its maximization of the efficiency of the spot market.
“As greater numbers of software teams around the world seek to optimize their cloud computing usage, an effective “spot” strategy will become an increasingly important part of their cloud programs,” said Todd Kesselman of PICO Venture Partners. “We are excited to work closely with Spotinst to help them further build out their technology and grow their impressive roster of clients, which already includes some of the world’s most innovative companies.”
Support for Google Cloud Platform and Microsoft Azure will be introduced later this year, according to Spotinst.
Cloud management companies like Cedexis and RackWare have announced successful financing rounds in the past couple of years, but more direct competitors in the public cloud cost management space include Cloudyn, Cloudability, and Cloud Cruiser. A report released by Cloud Cruiser in July found that while cloud usage and tracking tools are potentially very valuable, over a quarter of those who use them are dissatisfied. A November report by Sungard Availability Services showed costs associated with cloud frequently exceed enterprise expectations.