Spotinst, which allows businesses to purchase and manage cloud infrastructure space through its Elastigroup platform, has raised approximately $52 million since its launch. This latest round was led by Highland, with all of Spotinst’s previous investors -- including Intel Capital, Vertex Ventures, and Leaders Fund -- participating in the round.
Founded in 2015, Spotinst helps businesses to manage their compute infrastructure across different cloud providers, while also achieving savings of 80 percent on average on regular cloud computing costs, according to the company’s own numbers.
Essentially, the mega-cloud providers like Google Cloud Platform, Amazon Web Services, and Microsoft Azure are all running massive data centers to make sure that there is enough data available to keep up with customer demand, which can rise and fall depending on the time of day. Because of this, there are always machines going unused, so to put the extra capacity to use, those providers will over discounts of up to 80 percent. The problem is that if Google or Amazon suddenly needs those machines, the discounted customers are unceremoniously booted off. For many users, the unreliability isn’t worth the low cost.
Spotinst takes advantage of this by using machine learning and AI to predict trends in availability. Then, when one instant ends, the company can smoothly transition its customers to another instance.
Multi-Cloud Management APIs
The company recently bolstered its AI-based cloud workload management platform by adding new user management capabilities to its API. Previously, user management was provided only through the company’s Spotinst Console, but now users can integrate the new APIs into their administrative applications and processes. These user management APIs can be used to provide users with role-based access, update a user’s role, and associate users with Spotinst Accounts.
Gajan Rajanathan, growth investor at Highland Europe, which led this latest round of funding, said that Spotinst’s unique platform should be seen as a boon for some of the world’s largest organizations by helping them control their mission-critical infrastructure costs while freeing up time and 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 testament to an exceptional team. We are truly excited to partner with them in their next innings of growth,” he said.
Spotins plans to use the new funds to increase its market share in the cloud optimization 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, combining the power of Containers with a true Serverless experience and zero ops,” said Amiram Shachar, founder & CEO, Spotinst.
Spotinst has 100 employees spread across offices in San Francisco and Tel Aviv. Customers span large enterprises to hundreds of SMBs across the US, Europe, and the Middle East, and its clientele includes names like Sony and Ticketmaster.