Intelligent Workload Management company Spotinst has raised $35 million in Series B funding led by Highland Capital. Leaders Fund, Intel Capital, and Vertex Ventures also participated in this round of funding. This means that Spotinst has now raised more than $52 million in total funding.
What is Spotinst known for? Essentially, Spotinst helps customers save up to 90% on cloud computing costs whether it is for their web applications, containers, financial simulation, caching tiers, etc.
Technology companies use cloud infrastructure companies such as Amazon Web Services (AWS), Microsoft Azure and Google Cloud Platform for content distribution and those vendors have data centers with enough capacity to handle customer demand. But often times, these vendors have machines that are not being used so this excess capacity is sold at major discounts. If that excess capacity needs to be tapped into, then the priority is going to be given to customers that were not sold at a discount.
“With machine learning and artificial intelligence, Spotinst can predict trends of availability. We know how long an instance will live and we can smoothly move our customers from one instance to another, allowing them to run complex or mission-critical applications,” said Spotinst co-founder and CEO Amiram Shachar in an interview with TechCrunch.
Shachar emphasized that Spotinst is not a brokerage service. Companies sign up for Spotinst as cloud customers. And Spotinst generates revenue by receiving a percentage of money saved for the discounted cloud capacity.
Spotinst has 100 employees as of right now. But its employee count is expected to double in the next year across its offices in San Francisco and Tel Aviv.