After securing an investment round of $8.7 million earlier this year, cloud management startup Cloudability recently passed $250 million in total cloud bills. The milestone is further evidence of the emerging market for cloud monitoring.
“That means we’re tracking over a quarter of a billion dollars for our users. Annualized spending is a tad over $160 million, and, given Amazon’s dominance in cloud spending today, we’re probably helping our customers to manage at least 10 percent of global spending on AWS,” according to the company’s Founder and CEO Mat Ellis.
“We spend a lot of time in this data figuring out usage and spending patterns, and what we are seeing is very interesting,” Ellis said in a blog post.
Ellis explained the company’s meteoric rise to belief by CIOs that analyzing cloud usage is quickly being seen as mandatory.
“We used to joke about the difficulty in training engineers to turn out the lights after they left the room, but increasingly we are seeing technical folks take this aspect of their job very seriously,” he said. “The meme of ‘that stuff is for managers’ is being replaced with ‘we’ve only got so much, let’s make the best of it.’”
Cloudability is also seeing the focus move from total cost to total efficiency, Ellis explained.
“Instead of thinking of your cloud like a data center costing $x per month, companies are beginning measuring it in $y per unit of productivity. If you make widgets, what’s the cost per widget? This makes sense, and it’s been a long time coming,” he said.
In addition, the market has matured in the past 12 months, moving past the exploratory stage to more implementations and, therefore, complex systems designed to define the true cost of cloud technology.
“The most advanced practitioners are already 6-12 months into a deep understanding of the IT economics of their business,” Ellis said. “These understandings will be translated into best practices as the market grows through 2013.”
In July, Cloudability closed a Series A investment round of $8.7 million, led by the Foundry Group. Other participants in the round include 500 Startups, Trinity Ventures and Wieden + Kennedy.
Company officials said the funding round will help further expand its engineering and marketing teams, build out new, advanced features and accelerate platform development and additional cloud-service integrations.
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