August 29, 2018

Workload management company Spotinst raises USD 35 million

The cloud company aims to modulate capacity for data centers by leveraging artificial intelligence in a bid to cut operational costs.

Quantum cloud

Cloud-based workload management firm Spotinst have raised USD 35 million to boost their capacity management prowess for data center providers. With this cash infusion, Spotinst will be leveraging AI (Artificial Intelligence) to provide economically viable data center services from cloud infrastructure vendors like AWS, Microsoft and Google.

According to Spotinst, cloud players like AWS, Microsoft and Google have built massive datacenters which are dedicated to customer needs. They say that since the number of servers are large, chances are that some of them undergo demand crunch like any product in the market.

This cyclical demand, Spotinst claim, is difficult to predict and causes huge loss to those customers that have already paid a premium for data center services. They further added that some customers that avail these servers on discounted rates need to move to other virtual machines if the need for more servers suddenly arises.

In a bid to end this unpredictability, Spotinst say that they had to raise funds to reach to markets where their customers are depending on cloud providers like Amazon AWS, Azure and Google Cloud Platform. They believe that with this move, Spotinst will boost the capacity management at cloud-based data centers and use predictive analytics and AI to save operational costs for clients.

Speaking about the move, Amiram Shachar, Co-founder and CEO of Spotinst, commented:

What we’ve seen in the past six months is that our containers offering is growing exponentially month over month. And as customers are deploying containers we’re able to run them on excess capacity, and save them huge amounts of money.

Industry experts believe that this move will benefit Spotinst’s global customers immensely. They also claim that it is about time that cloud service providers think of myriad ways to optimize capacity management at data centers to help mitigate operational costs. To know how cloud companies manage cloud capacity for different industries read about AWS launching Aurora Serverless for the retail industry.