Zesty Secures $75M in Funding to Cut Enterprise Cloud Costs


Cloud infrastructure optimization startup Zesty Tech Ltd. today announcement that it secured a $75 million funding round.

The Series B funding round was jointly led by B Capital and Sapphire Ventures. Zesty’s existing backers Next47 and S-Capital also participated. Since its launch in 2019, the startup has raised a total of $116 million from investors.

Israel-based Zesty offers two software products that promise to help businesses reduce their cloud infrastructure expenses. The first product, Commitment Manager, aims to reduce the costs associated with the compute instances used by a company. Zesty’s other offering is called Zesty Disk and focuses on reducing data storage expenses.

Both of the startup’s products are designed to work with Amazon Web Services Inc’s cloud platform. According to Zesty, hundreds of organizations use its technology to optimize their AWS environments.

AWS customers looking to reduce their cloud expenses have access to Amazon EC2 Reserved Instances, which cost up to 72% less than standard EC2 instances. To qualify for the discounted rate, enterprises must commit to renting a Reserved Instance for one to three years.

A company could theoretically use Reserved Instances for all of its cloud projects to minimize compute costs. But this approach is often not practical to implement.

The fact that Reserved Instances must be purchased for one to three years means companies need to carefully plan their cloud investments. If a company purchases more Reserved Instances than needed, cost overruns can occur. To avoid cost overruns, organizations often opt for standard EC2 instances, which are more expensive than Reserved Instances but don’t require a long-term investment and therefore make it easier to manage cloud-related expenses.

Zesty’s first product, Commitment Manager, promises to help enterprises reduce their EC2 instance costs. The product does this by allowing enterprises to use Reserved Instances without the risk of cost overruns. According to Zesty, Commitment Manager can provision Reserved Instances on demand and sell them when no longer needed to avoid unnecessary cloud infrastructure spending.

The result, Zesty says, is that enterprises can use low-cost Reserved Instances for workloads they previously had to run on more expensive Standard Instances. The startup claims that Commitment Manager can reduce costs by up to 60% in some cases. Additionally, the software promises to save administrators time by automating the historically manual process of adding and removing instances when application infrastructure requirements change.

“The cloud has become the foundation of mission-critical functions for countless enterprises, but more often than not, DevOps teams are stuck with static infrastructure, like discount program commitments or allocated storage volumes that waste time and effort. money,” said the co-founder and head of Zesty. General Director Maxim Melamedov.

Zesty’s second product, Zesty Disk, promises to optimize enterprise AWS storage environments. Zesty Disk can automatically add or remove block storage capacity based on application requirements. By aligning the amount of provisioned capacity with application requirements, the software helps reduce the risk of organizations purchasing more capacity than needed.

Zesty says Zesty Disk also optimizes storage performance in the process. The software can replace a large volume of storage, the term for a pool of cloud-based storage capacity, with several smaller volumes that together are capable of holding the same amount of data. According to Zesty, this approach increases the number of data input and output operations that applications can perform simultaneously, increasing their performance.

The startup says its revenue has tripled since its last funding round last November. Additionally, the startup revealed today that its customer count grew 127% from 2021 to 2022, but did not disclose absolute numbers. Zesty’s counts major tech companies such as Monday.com Ltd. among its customers. and Grubhub Inc.

Zesty will use the recently announced $75 million funding round to hire more workers and develop additional features for its software products.

Photo: Unsplash

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