Spotinst raises $35m for AI cloud computing workload management platform
Spotinst has announced that it has raised $35 million in a Series-B funding round for its AI-based workload management platform, which helps companies to manage and optimise their cloud computing spend across several cloud providers.
The funding round was led by Highland, with participation from existing investors Leaders Fund, Intel Capital, and Vertex Ventures. Spotinst has now raised approximately $52m since launch.
‘We're enabling enterprises and startups to run their production and mission-critical applications for a fraction of the regular price,’ says Founder and CEO Amiram Shachar. ‘We enable cost optimisation through AI. It means that our customers can be proactive in managing their cloud usage, rather than reactive. Our workload management platform helps customers dramatically reduce their cloud costs.’
Founded by Amiram Shachar, Liran Polak and Aharon Twizer in 2015, Spotinst helps businesses to manage their compute infrastructure across different cloud providers, while also achieving savings of 80 per cent on average on regular cloud computing costs, by tapping into excess compute capacity in data centres operated by Amazon Web Services, Microsoft Azure and Google Cloud.
Excess capacity is sold by the major cloud vendors at a heavily discounted rate but it can be hard for companies who would like to take advantage to predict the availability of capacity. Spotinst’s platform can intelligently manage, provision, and orchestrate compute capacity in the public cloud. It uses predictive machine learning algorithms to identify and predict when so-called ‘Spot Instances’ - the discounted opportunities - become unavailable. When they do, Spotinst automatically migrates applications to available capacity, without compromising on availability.
Gajan Rajanathan from Highland, said: ‘Spotinst’s Elastigroup is a unique platform that enables some of the world’s largest organizations to control their mission-critical infrastructure costs with an enterprise-grade SLA, while freeing up time and valuable DevOps resources. The ability to provision, manage and scale compute needs across a variety of public and private clouds has been a real challenge to enterprises, and the level of sophistication that Spotinst brings to solving these complex issues is a testament to an exceptional team. We are truly excited to partner with them in their next innings of growth.’
Spotinst is yet to start spending the $15m it raised in series A in 2017, but has decided to raise additional funds. ‘This is a business that can live on its operating cash flows but the time is right to capture the large opportunity in front of us and begin a period of hyper-expansion and grow across multiple markets and cloud providers,’ Shachar said.
Spotinst will use the new funds to increase its market share of the cloud optimisation space, and double-down on its Serverless and Containers platform. ‘The world is consolidating around Containers and Kubernetes APIs, and our next big mission is to enable dev and ops engineers to deploy ‘Serverless’ Containers. Our platform provides the next generation and the nirvana that everyone was waiting for, it fits and right-sizes compute infrastructure dynamically based on containers and application needs.’ Shachar said.