Spotinst, the start-up allowing companies to buy and manage excess cloud capacity, acquires StratCloud – TechCrunch

Spotinst, the cloud automation and optimization startup founded in Tel Aviv, but also with offices in San Francisco, New York and London, has also acquired AWS partner StratCloud. The terms of the agreement are not disclosed, although I hear that it combines both cash and equities and is around $ 5 million.

As part of this acquisition, StratCloud's 15-person team will join Spotinst, including founder Patrick Gartlan, who will become vice president of cloud services at Spotinst. StratCloud did not raise venture capital, but Gartlan, CloudCheckr's former CTO, started it.

Founded in 2015, Spotinst enables businesses to optimize the use of their cloud infrastructure by automating the process of using excess capacity – and therefore less expensive – of leading cloud providers.

As TechCrunch's Ron Miller explained earlier, cloud platforms such as AWS, Microsoft Azure, and Google Cloud Platform, all supported by Spotinst, need to retain more resources than needed. All three companies offer significant discounts to customers who want to access these resources, but they are subject to a strict condition that platforms can recover these resources at any time. This is where Spotinst (and the current acquisition of StratCloud) comes in.

The Spotinst platform manages the backup capacity acquisition process powered by predictive artificial intelligence and allows vendors to seamlessly switch providers prior to their removal. This ensures that the "workloads" of cloud computing continue to work, while the customer always gets the best possible price.

At the same time, StratCloud tech is described as an "optimization platform" that buys, sells and converts the reserved capacity, maximizing the savings on the on-demand infrastructure. "This leads to lower compute payments, without the engineers having to change anything in the applications and infrastructure they manage," says Spotinst.

In the same vein, Spotinst will migrate dozens of StratCloud customers to the Spotinst platform, where they will continue to benefit from all the current features.

Overall, the acquisition means that Spotinst can now offer a complete solution to cloud users, including offering reserved instances and unused power, so businesses can run any workload Load large scale migrations on any cloud provider. Spotinst adds that these combined technologies provide Managed Service Providers (MSPs) with a complete tool for optimizing cloud workloads for all their managed customers.

Spotinst has more than 1,500 corporate customers in 52 countries, including Samsung, N26, Duolingo, Ticketmaster and Wix. The company currently employs approximately 150 people in its four offices and has leveraged $ 52 million in venture capital funds to date.