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The cloud wave has been rising for a while now. According to Palo Alto Networks, nearly 70% of organizations currently host more than half of their workloads in the cloud, and overall adoption has grown 25% over the past year.
A big reason behind the rapid adoption of the cloud is the opportunity to reduce IT infrastructure costs. In the cloud, IT leaders and development teams can easily right-size computing resources to their unique business requirements and reduce wasteful spending. The benefit is significant, especially for someone coming from an on-premise infrastructure, but it also remains marred by some gaps.
Essentially, more often than not, teams are stuck with static cloud infrastructure such as subscriptions or distributed storage volumes. This causes them to struggle to keep resources aligned with the fast pace of the modern business environment — and ultimately affects application performance.
“Devops engineers are stuck in the middle – trying to fit this dynamic reality into rigid infrastructure. They face constraints such as discount program commitments, fixed storage volume capacity, CPU and RAM, which cannot be continuously adjusted to suit changing demand,” said Maxim Melamedov, CEO and co-founder of Israel-based Zesty. “This results in countless wasted engineering hours trying to predict and manually adjust cloud infrastructure, as well as billions of dollars wasted every year.”
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Automated cloud infrastructure management
Founded in 2019, Zesty minimizes the constant hassle of manual resource management by providing a suite of tools that automate cloud resource optimization tasks. The company announced today that it has raised $75 million in a Series B round led by B Capital and Sapphire Ventures.
“Zesty breaks the inefficient cycle with dynamic cloud infrastructure. This new way of working with infra enables customers to automatically scale cloud resources to optimally meet application demand at any time and instantly adapt to any changes that occur,” said Melamedov. “This enables enterprises to dramatically reduce cloud costs, maintain perfect application performance, and minimize the stress of configuring infrastructure.”
The company provides compute, block storage and Kubernetes offerings. It automatically manages and scales disk space by shrinking and expanding storage volumes according to real-time application needs. This eliminates the need for overprovisioning and can reduce storage costs by up to 70%, all while preventing the risks of service degradation and system failure.
“Zesty also empowers companies to take advantage of the cost-saving potential of AWS Reserved Instances by automating the buying and selling of Reserved Instances and adjusting EC2 (elastic cloud computing) commitments in real-time,” Melamedov said. “This results in an average savings of 50% over bespoke prices.”
The offer has seen demand from hundreds of businesses since its launch, including Heap, Firebolt, Singular, Gong, Grubhub, Yotpo, Monday and Wiz. Heap, in particular, was able to use Zesty to increase its reserved case coverage to 95% and save over $1 million annually.
How Zesty will use its new funding
With this round, which brings Zesty’s total capital to $116 million, the company plans to focus on launching new products and features, including dynamic scaling of container resources based on usage demand. This will remove the need to predict and routinely monitor CPU and RAM for K8 clusters, supporting application performance and keeping costs low and efficient. The company has seen its revenue grow by over 300% in the last year – with almost zero attrition.
While there are other players helping with cloud challenges, including Spot Cloud Analyzer, Nutanix Beam, CloudHealth and Amazon CloudWatch, Zesty claims to be the only one that wants to answer all the problems related to cloud infrastructure and its management .
“We’re breaking new ground in creating solutions that enable a truly dynamic cloud infrastructure, and we’re way ahead of other companies that offer specific solutions to individual cloud management issues,” Melamedov said.
According to business tracker Anodot, nearly half of businesses struggle to control cloud costs, and 54% believe the main source of cloud waste is a lack of visibility into cloud usage.
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