How much does your cloud cost? CloudZero raises $32 million to help companies answer this question and reduce spending

It’s become a given of modern business, at least if your business has a digital presence—large or small, established or insurgent, regardless of industry—you’ll probably need to think about cloud data storage and the associated costs.

So it makes sense that CloudZero, a B2B company that builds tools to help enterprise customers understand and control cloud costs, today announced $32 million in Series B funding to further expand its cloud intelligence platform.

“As the cloud continues to become an integral part of businesses, CloudZero is stepping up to make cloud cost management easier, more effective and more efficient,” said Phil Pergola, CEO of CloudZero. “Our platform is purpose-built for engineers, aligning the interests of finance, operations, and engineering teams and generating significant cost savings.”

The new funding round was led by Innovius Capital and Threshold Ventures, with additional contributions from existing investors Matrix Partners, Underscore VC and G20 Ventures.

It’s a good time to be in the cloud business

CloudZero predicts cloud spending will reach a record $600 billion in 2023, with 73% of companies reporting cloud costs as a top board-level concern.

CloudZero has positioned itself as a leader in this space by offering greater visibility into cloud costs across a multitude of providers.

Its platform enables software teams to manage cloud spend at a granular level, helping them understand how specific product features or customer interactions impact bottom line. Real-time data enables proactive cost optimization, limiting waste by identifying expensive lines of code or SQL queries that can cause spending spikes.

“What sets CloudZero apart from other vendors on the market is its ability to merge all sources of cloud costs into one comprehensive platform,” said Justin Moore, CEO of Innovius Capital. “This enables individual engineers to pinpoint exact cost drivers, enabling finance and operations teams to accurately forecast the unit economics of the company.”

Very high ambitions

CloudZero’s platform excels at providing complete visibility into every aspect of your cloud spend through its AnyCost feature. It digests all types of cloud spend (IaaS, PaaS, SaaS) in real time, normalizes them into a common data model, and presents a consistent view to stakeholders.

Additionally, CloudZero’s CostFormation feature combines billing and telemetry data to allocate every penny of spend into tagable and non-tagable categories, including shared resources, multi-tenant architecture, and Kubernetes, eliminating hand coding or the use of spreadsheets .

Perhaps the platform’s most distinctive feature is its engineering engagement tools. CloudZero provides engineers with AI-powered anomaly detection, enabling them to optimize the fixed and variable costs associated with their cloud consumption.

As Mike Rosenberg, Senior Director of Engineering at Nubank said, “CloudZero has one of the most powerful cloud cost analytics platforms on the market. As a fellow data-driven organization, CloudZero is a strong cultural fit for Nubank and we are delighted to partner with the team.”

But predictions for fierce competition remain high

With this new capital, CloudZero plans to expand the capabilities of its platform, grow its business capabilities, and empower its team to help more customers maximize their cloud investments.

However, at the same time, it faces fiercer competition than ever from other established rivals in the space, including Microsoft, which recently announced its new multi-cloud provider analytics platform Fabric, aiming to address Google and Amazon.