Exostellar, a startup specializing in cloud spend optimization, has successfully closed a $15 million Series A funding round. The funding round was led by Celesta and Cambium Capital, with participation from Alpha Intelligence Capital. Exostellar’s new CEO, Tony Shakib, stated that the funding values the company at $40 million. With the increasing demand for cloud services and the need to minimize wasteful cloud spend, Exostellar is in a favorable position to take advantage of market trends.
Exostellar, a cloud spend optimization startup, has raised
5 million in a Series A funding round. The funding highlights the increasing demand for solutions to manage and optimize cloud spending. With its software that dynamically allocates and moves workloads between the most cost-effective cloud infrastructure, Exostellar aims to reduce cloud infrastructure costs and increase utilization for its customers.
The Challenge of Cloud Spend Management
As companies increasingly rely on cloud services, keeping track of and optimizing cloud spending has become a significant challenge. According to Statista, 82% of companies find managing cloud spend to be a significant challenge. Self-estimated wasted cloud spend for this year sits at 28%, highlighting the need for solutions to optimize costs. This is especially important with the growing demand for compute-intensive technologies like AI.
Introducing Exostellar’s Solution
Exostellar, formerly known as Exotanium, offers cloud spend optimization software. The software dynamically allocates and moves workloads between the most cost-effective cloud infrastructure in real-time. It works alongside popular resource management tools like Slurm and is designed to be application-agnostic. By monitoring variables such as spot instance pricing, Exostellar’s software can predict when a cloud provider might shut down an instance. When this is likely to happen, the software temporarily moves the workload to a more expensive, standard-rate cloud instance. Additionally, the software consolidates instances into the minimum necessary number and adjusts their size and power according to the current workload.
A Competitive Market and Growth Opportunities
The cloud spend management market, also known as FinOps, is set to grow from under $1 billion this year to $2.75 billion by 2028. Exostellar faces competition from vendors such as Netapp-owned Spot.io, Cast AI, VMWare’s CloudHealth, Apptio, nOps, and Zesty. However, Exostellar differentiates itself by eliminating the trade-off between on-demand, reserved, and spot instance pricing, enabling organizations to achieve the lowest cloud pricing without long-term commitments.
To stay ahead, Exostellar plans to expand its platform to include additional public cloud platforms such as Azure, Google Cloud, and IBM Cloud. The company also intends to introduce support for GPU instances. The COVID-19 pandemic has presented both challenges and opportunities for Exostellar. With organizations operating primarily online, the demand for cloud application servers has reached an all-time high, creating significant growth opportunities for Exostellar’s technology.