CloudZero, a start-up specialising in cloud cost management, has announced a significant influx of capital.
The Boston-based company, established almost a decade ago, offers a unique platform designed to equip engineering teams with crucial cost data, thereby streamlining decision-making and enhancing cloud efficiency.
The firm recently secured a hefty $32m in a Series B funding round, led by key investors Innovius Capital and Threshold Ventures. This latest round propels the company’s total funding to a staggering $52m, marking a significant milestone in CloudZero’s trajectory.
CloudZero aims to revolutionise how businesses manage and minimise their cloud costs. Through its innovative platform, the company provides engineering teams with cost data on a unified dashboard. The data is layered atop cloud billing information, offering in-depth answers to cost-related queries concerning individual products or features. By integrating business- and system-level telemetry with hourly cloud spend data, the platform can effectively alert engineers to “abnormal” spend events flagged by its AI algorithm.
This fresh investment is set to bolster the expansion of CloudZero’s platform and expedite its go-to-market efforts. CEO Phil Pergola stated that the focus will be on enhancing savings insights and self-service analytics.
According to Pergola, the pandemic has rapidly accelerated digital transformation, leading to a surge in public cloud spend while the broader tech slowdown has shifted focus to profitability and unit economics. He added that CloudZero has significantly benefited from these trends and is primed to accelerate its growth.
CloudZero was co-founded by Erik Peterson and Matt Manger. Peterson identified an “intrinsic” connection between efficient architecture and cost-effective cloud solutions, a perspective that has driven CloudZero’s value proposition.
Pergola added, “Cloud adoption is now widespread across sectors, but digital businesses struggle with lack of visibility, control, and optimisation of their cloud costs. With up-to-the-minute monitoring, our platform identifies cost drivers and anomalies instantly, enabling engineers to proactively address cost spikes or inefficiencies and avoid cloud waste.”
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