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

The funding round was jointly led by B Capital and Sapphire Ventures. Existing Zesty backers Next47 and S-Capital participated as well. Since launching in 2019, the startup has raised a total of $116 million from investors. 

Israel-based Zesty provides two software products that promise to help companies reduce their cloud infrastructure expenses. The first product, Commitment Manager, focuses on lowering 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 seeking to reduce their cloud expenses have access to Amazon EC2 Reserved Instances, which cost up to 72% less than standard EC2 instances. To receive the discounted pricing, companies must commit to renting a Reserved Instance for one to three years.

A company could theoretically use Reserved Instances for all its cloud projects to minimize compute costs. In practice, however, that approach is often not practical to implement. 

The fact that Reserved Instances must be purchased for one to three years means companies have to carefully plan their cloud investments. If a company buys more Reserved Instances than needed, cost overruns may emerge. 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 spending.

Zesty’s first product, Commitment Manager, promises to help companies lower their EC2 instance costs. The product does so by enabling companies 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 they’re no longer needed to avoid unnecessary cloud infrastructure spending. 

The result, Zesty says, is that companies can use low-cost Reserved Instances for workloads they previously had to run on more expensive standard instances. The startup claims Commitment Manager makes it possible to reduce costs by as much as 60% in some cases. Moreover, the software promises to save time for administrators by automating the historically manual process of adding and removing instances when applications’ infrastructure requirements change. 

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

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

Zesty says that Zesty Disk also optimize storage performance in the process. The software can replace a large storage volume, the term for a pool of cloud-based storage capacity, with multiple smaller volumes that are together capable of holding the same amount of data. According to Zesty, this approach increases the number of data input and output operations that can be carried out at once by applications, which increases their performance. 

The startup says that its revenue has tripled since its last funding round last November. Additionally, the startup disclosed today that its customer count has grown by 127% from 2021 to 2022, but didn’t disclose absolute numbers. Zesty’s counts major tech firms such as Ltd. and Grubhub among its customers.

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

Photo: Unsplash

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