Ternary, a leading cloud spend management startup, has recently closed a successful Series A funding round, raising an impressive $12 million. The funding round was led by Jump Capital, with participation from Fin Capital, RiverPark Ventures, Great Oaks Venture Capital, and Gaingels.
Key Takeaway
Ternary, a cloud spend management startup, has secured
2 million in Series A funding. The company offers a comprehensive platform that helps companies optimize their cloud spending by breaking down expenses and recommending areas for cost reduction. With competition in the growing FinOps market, Ternary differentiates itself through agile product development, scalability, and its team’s expertise. As cloud spend becomes an increasing challenge for organizations, Ternary aims to provide the tools needed to navigate this complex landscape.
Addressing the Cloud Spend Challenge
According to Ternary’s co-founder and CEO, Sasha Kipervarg, the influx of capital will be used to bolster the company’s go-to-market strategy, scale its revenue team, and further enhance its product development efforts. Kipervarg believes that cloud spend has become a significant challenge across the industry, noting that while most compute tasks are still performed inside data centers, they will eventually migrate to the cloud. As the cloud infrastructure continues to evolve, there is a pressing need for tools that can effectively manage the dynamic cloud services being utilized.
Ternary was founded by Kipervarg, Patrick Raymond, and Joshua Kwan, who first collaborated on a massive cloud data migration project for LiveRamp, a prominent software-as-a-service data connectivity and orchestration platform. After overspending by $300 million, the team realized the need for a comprehensive tool that would have streamlined the migration process. This experience served as the catalyst for the creation of Ternary.
The Rise of FinOps
Ternary falls under the category of FinOps, which has rapidly evolved from a niche field into a significant sector within the IT industry. FinOps encompasses tools and practices aimed at managing and reducing cloud costs. A 2023 Wakefield Research report reveals that nearly 3 out of 10 developers, engineers, and executives are prioritizing FinOps investments this year. Additionally, 74% of respondents consider FinOps to be as critical as other established IT disciplines, such as DevOps and SecOps.
Ternary’s Unique Positioning
Although Ternary faces competition in the FinOps market, Kipervarg believes that the company stands out due to several key factors. Firstly, Ternary releases major functionality at an agile pace, distinguishing itself from incumbents that are slower to adapt. Moreover, Ternary is built on top of native Google Cloud Platform serverless services, enabling it to handle vast volumes of cloud spend. The company’s team consists of early leaders from Cloudability, Cloudhealth, and Cloudchkr, allowing them to make informed decisions about product development.
Bespoke Solutions for Effective Cloud Spend Management
Ternary’s platform offers comprehensive cloud spend management solutions to its customers. It breaks down an organization’s major cloud expenses, providing optimization suggestions and forecasting future spending. The platform ingests real-time billing data from major cloud providers, including Google Cloud Platform, Amazon Web Services, and Azure. This data allows companies to view costs associated with different accounts, services, software vendors, and cloud service providers. Additionally, Ternary employs “human-tunable” algorithms to recommend areas for cost reduction and can send alerts to customers when cloud costs exceed a certain threshold or experience unexpected spikes.
Unlocking Responsible Cloud Spending
Kipervarg emphasizes that companies require FinOps guardrails to effectively manage their cloud spending and operate successfully in the cloud. Ternary aims to shed light on an area of a company’s expenditure that often lacks proper instrumentation. With the latest funding round, Ternary is valued in the “two figures” and boasts nearly 250 customers. The company plans to expand its workforce from 25 employees to 40 within the next year.
