CloudZero – a cloud cost management company that reported another year of triple-digit growth – announced that it closed $32 million in Series B funding to expand its cloud cost intelligence platform. The funding round was led by Innovius Capital and Threshold Ventures with continued support from existing investors Matrix Partners, Underscore VC, and G20 Ventures. As part of the funding, CloudZero welcomes Justin Moore from Innovius Capital to its board of directors and Arpit Mittal from Threshold Ventures as a board observer.
CloudZero is addressing one of the largest and most opaque expense buckets for modern organizations: cloud spend. This will reach nearly $600 billion worldwide this year. This is why 73% of companies surveyed identify cloud costs as a board-level issue.
CloudZero’s ability to provide granular insights for any cloud provider empowers software teams to collaboratively manage cloud spend down to how a specific product feature or customer impacts margin. And this means engineering teams can see real-time, hourly data showing the consequences of software development decisions and can proactively optimize costs before waste occurs -which is something no other cost management solution can provide.
Unlike other solutions on the market, the CloudZero platform provides:
1.) Complete Visibility – CloudZero AnyCost ingests 100% of cloud spend (IaaS, PaaS, SaaS) in real-time, normalizes it in a common data model, and presents it in a single pane of glass. And this gives every stakeholder the most complete, accurate, and granular source of truth.
2.) Business Context – CloudZero CostFormation combines billing and telemetry data to allocate every penny of taggable and untaggable spending, including shared resources, multi-tenant architecture, and Kubernetes. And this enables software teams to understand what is driving their spending — customers, features, teams, microservices, etc. and minimize time spent on manual tagging or in spreadsheets.
3.) Engineering Engagement – CloudZero makes it easier for engineers to optimize the fixed and variable costs associated with their cloud consumption, including AI-powered anomaly detection. And this empowers engineers to prioritize cost efficiency as they build and operate their entire software stack.
With more than $5 billion in cloud costs currently under management, these differentiators are why customers ranging from leading startups to Fortune 500 companies rely on CloudZero to build cost-efficient software.
With the new funding round, CloudZero is going to expand platform features, advance its enterprise functionality, and scale headcount with the goal of helping more customers get the most value out of their cloud investments.
KEY QUOTES:
“Cost management is a challenge for every business that leverages the cloud. Most vendors in the market address small pieces of the overall problem, only providing surface-level insights into underlying cost drivers. We were looking to invest in a company that unified all sources of cloud costs into a single platform that was granular enough to help an individual engineer identify the exact line of code or SQL query that was spiking costs, yet broad enough to help finance and operations accurately understand and forecast the company’s unit economics. We found that platform in CloudZero.”
— Justin Moore, CEO of Innovius Capital
“CloudZero has one of the most powerful cloud cost intelligence platforms on the market. As a fellow data-driven organization, CloudZero is a strong cultural fit for Nubank and we’re glad to partner with the team.”
— Mike Rosenberg, senior director of engineering at Nubank
“Product and engineering leaders are under as much pressure as ever to deliver innovation, but now they are being asked to do so on leaner budgets. CloudZero provides engineers with the right data at the right time to make cost-efficient decisions without disrupting their workflow or slowing down new feature delivery.”
— Josh Stein, co-founder and managing partner at Threshold Ventures
“Despite the existence of first-generation cloud cost management solutions, the number one pain for FinOps professionals is consistently getting engineers to take action. CloudZero recognizes that every engineering decision is a buying decision, which is why our platform is purpose-built for engineers. It is invigorating for the CloudZero team to come to work every day knowing that we are helping thousands of engineers drive tens of millions of dollars in cost savings, and we are just getting started.”
— Phil Pergola, CEO of CloudZero
