Will Israeli Cloudyn become a large cloud company, or stay a niche cloud startup?
If you’re a major company that uses multiple cloud services, including public and private cloud environments, your costs can get pretty steep. One Israeli startup claims it can optimize cloud usage across servers so much that it can save up to 45% of monthly costs.
That company is called Cloudyn — and it has just raised an $11 million Series B funding round.
On the heels of a $4 million Series A in September 2014, Cloudyn announced Monday it had completed a new round with Carmel Ventures — a Viola Group member — as the lead investor. Past investors Titanium Investments and RDSeed also participated, bringing their total funding to date to $16.5 million. As part of the deal, Carmel Ventures General Partner Ronen Nir will join Cloudyn’s board.
Cloudyn vs. a strata of competitors?
While there are a number of companies that optimize cloud usage and costs — fellow Israeli company Spotinst and similarly large Portland-based startup Cloudability, for instance — what makes Cloudyn works across more than just one or two providers and helps monitor both public and private clouds. Currently, it optimizes public and private cloud usage on AWS, Microsoft’s Azure platform, Google Cloud Platform, as well as OpenStack. In 2016, it expects to add SoftLayer and VMware to their roster. It is able to display information across networks clearly through its single pane of glass view, or in other words, can show various data sources in a cohesive, unified format.
When we asked CEO Sharon Wagner if he plans to sell Cloudyn, he told Geektime, “We are planning to continue accelerating growth with the goal of building a unicorn company in Israel and owning the Hybrid Cloud Management space!”
With this funding round, the company plans to accelerate growth by doubling its staff beyond its current 26 employees by expanding within North America and other markets. They plan to beef up their marketing, RD and sales teams.
Its pricing plans are fairly generous: There is a free version, a $229/month option, and customized pricing for larger and/or more specific needs. The free version shows cloud usage and costs, while the $229/month plan includes optimization recommendations.
Sharon Wagner, Vittaly Tavor, and Boris Goldberg founded Cloudyn in 2011 and its headquarters are located in Tel Aviv.
At this moment, we imagine that unless Cloudyn expands its services to a complementary space, it will eventually sell to the largest bidder. While a growing market, we still don’t believe hybrid cloud management is a large enough sector to grow a unicorn company.