The cloud cost management and optimization business is highly competitive, with several new startups offering platforms that can help businesses improve their return on their investment in the cloud. Cloudyn is one such firm that is doing particularly well, having just closed its latest round of funding with a further $4 million raised.
The Israeli firm has an advantage over some of its competitors as it is already possible to use the platform to optimize costs across multiple cloud platforms. In addition to AWS, Cloudyn supports Rackspace, IBM SoftLayer, and the Google Cloud Platform. Cloudyn is currently working on adding support for Microsoft Azure and VMware’s public cloud and is already a leader in cost optimization for hybrid cloud environments.
The firm has already signed up more than 2,400 businesses, many of which are large firms with significant cloud footprints. Many of its clients are using more than 250 cloud instances concurrently, with plenty of potential for cost optimization. Most of the firm’s business comes from AWS – around 70% of its customers are on AWS – which is unsurprising given AWS is the market leader by some distance. According to Cloudyn CEO Sharon Wagner, Cloudyn is used to manage approximately 8% of all AWS instances. 20% of the firm’s customers are using GCE, with the majority of the rest primarily using OpenStack-based cloud environments.
The latest round of funding was led by Titanium Investments. RDSeed, a previous investor, also participated. The company is also performing well, having enjoyed a doubling of its revenue each quarter for the past six quarters. That adds up to 400% year-over-year growth.
The funding will be used for further platform development and to cover the cost of more staff, increasing its team from 17 full time employees. In addition to expanding support for other cloud platform providers, Cloudyn is working on providing its customers with even more granular cloud cost visibility.