Cloud resource management solution provider Spotinst has raised more than $15 million in Series A funding, with Intel Capital leading the latest funding round. Springtime Ventures and Vertex Ventures both participated, and together bring the total investment in the firm up to $17 million. The funding from the latest round of investment will be used to increase the firm’s business reach and grow its operations.
Spotinst is an Israeli firm that has developed a machine-learning based cloud cost management platform that provides businesses with cloud workload management capabilities at the best price point.
Spotinst’s intelligent cluster orchestration software helps companies reduce their spending on spot instances on AWS and Microsoft Azure low priority virtual machines. Many companies choose spot instances for VMs instead of renting traditional VMs due to the cost advantages. While the costs are lower, spot instances can be shut down at any time and it is often difficult for businesses to ensure they have the capacity they need. Spotinst takes advantage of on-demand, reserved and spot instances to create a cluster that is always available, while ensuring users still get the cost advantages of spot instances.
Spotinst manages the bid process for spot instances and accurately predicts when customers are likely to have to switch servers. That process is automated ensuring customers get stable cloud capacity without interruptions and get the capacity they need at the lowest possible cost.
The platform uses a predictive algorithm to determine required capacity and chooses the most cost-effective option for businesses, allowing them to make huge savings on their compute costs. Use of the platform can help businesses shave an impressive 50%-90% from their compute bills.
While it is possible to take advantage of the spot instance market and keep cloud costs to a minimum, without a software solution it can be a complicated and ultimately frustrating process. Via a simple dashboard, Spotinst provides users with cost data and automatically implements all the necessary actions to ensure businesses benefit from the best possible prices. By outsourcing spot instance management, businesses can keep cloud costs to a minimum and can focus on core elements of the business. In addition to ensuring businesses get the best possible price, the platform also helps them make full use of the compute resources they are paying and eliminates wasted cloud spend.
The firm has gone from strength to strength since its launch in 2015 and is now enjoying 30% month-over-month growth. The Tel Aviv firm is now managing hundreds of millions of computing hours for its customers.