- The company claims that engineers can stay ahead of shifting conditions by using the “CloudZero AnyCost” service, which allows them to see what’s happening at all times.
- In 2023, spending on public cloud services will increase significantly, reaching USD 597 billion, up from USD 491 billion in 2022, according to a report by Gartner Inc.
CloudZero Inc., an expert platform for cloud intelligence and cost reduction, announced recently that it has successfully raised USD 32 million in Series B financing. The funding will be utilized to expand the platform and enable software teams to manage their cloud spending effectively.
CloudZero assists cloud teams in eradicating unnecessary expenditures and delivering
optimized code by monitoring usage data obtained from various cloud providers like Microsoft Azure, Amazon Web Services, and Google Cloud Compute, among others. It unifies and standardizes all costs, determining how usage will affect customers.
This includes insights into how a particular change, product, or feature affects cloud
spending so that the team can decide how to handle development decisions collaboratively. Before any waste occurs, engineers have the ability to view real-time, hourly data on costs and optimize them.
Chief Executive of CloudZero, Phil Pergola, said, “Despite the existence of first-generation cloud cost management solutions, the number one pain for FinOps professionals is consistently getting engineers to take action. CloudZero recognizes that every engineering decision is a buying decision, which is why our platform is purpose-built for engineers.”
Innovius Capital and Threshold Ventures led the funding round, with participation from existing investors like Underscore VC, Matrix Partners, and G20 Ventures. The current round of funding brings the company’s total funding to more than USD 47 million.
CloudZero’s products include a behind-the-scenes dashboard that provides complete
visibility of all cloud spending incurred by a company through all of its usages by ingesting 100% of its cloud activity, including infrastructure-,platform-, and software-as-a-service, all in real-time, according to the company. Engineers can see what’s going on at any time and stay ahead of changing conditions by using the “CloudZero AnyCost” service, according to the company.
In addition, the company claims to use AI-powered anomaly detection to monitor the fixed and variable costs associated with cloud consumption and costs. In this manner, engineers can focus on prioritizing cost efficiency for new features and products as they build and work across the entire software and cloud stack.
Chief Executive of Innovius Capital, Justin Moore, said, “Cost management is a challenge for every business that leverages the cloud. We were looking to invest in a company that unified all sources of cloud costs into a single platform that was granular enough to help an individual engineer identify the exact line of code or SQL query that was spiking costs, yet broad enough to help finance and operations accurately understand and forecast the company’s unit economics.”
According to a report by Gartner Inc., spending on public cloud services is expected to
experience significant growth in 2023, reaching a total of USD 597 billion, compared to USD 491 billion in 2022. The report also forecasts that by 2026, approximately 75% of organizations will adopt cloud technologies as part of their digital transformation efforts, driven by the need to enhance customer experience. As a result, cloud spending will become an integral aspect of operations for these companies, representing a constant presence in their business landscape.
CloudZero isn’t the only company on the market that offers cloud cost intelligence; ProsperOps Inc. emerged in the FinOps space to help reduce public cloud expenses with an AI-driven intelligence solution. Achera.ai Inc., for example, uses AI to automate cloud management for workloads by forecasting compute needs to reduce cloud costs.
CloudZero stated that the new funding would be used to expand platform features and develop additional enterprise functionality. With the goal of helping more customers derive greater value from their cloud investments, the company plans to expand its workforce by hiring additional employees.