CloudZero, the Boston-based cloud cost optimization platform, has secured $56 million in Series C funding following another year of triple-digit growth.
The $2 trillion problem
Founded in 2016, CloudZero has established itself as a leader in proactive cloud cost efficiency. The company’s claim to fame is a cloud FinOps system that automates the collection and analysis of cloud and AI spending data, giving businesses visibility into their infrastructure spending. It also helps them better assess ROI potential.
The timing couldn’t be more critical. With cloud spending projected to reach $2 trillion by 2030, according to research by Goldman Sachs, and AI workloads significantly altering IT infrastructure, organizations are in dire need of sophisticated tools to manage the resulting skyrocketing costs. Simply put, CloudZero helps engineering teams make smarter cloud decisions by connecting the dots between what they’re building and the actual costs to the business.
What’s next for CloudZero
The company plans to utilize the fresh funding across several key areas: ramping up AI-powered cost analytics and forecasting capabilities, enhancing the integration between developer and finance tools, scaling sales and marketing efforts, and strengthening partnerships with cloud providers and other key stakeholders.
“Organizations that optimize their cloud costs gain a competitive advantage, while those that neglect cost management risk limiting their growth and innovation,” said Michael Platt, founder and CEO, BlueCrest Capital Management. “CloudZero gives customers financial control and predictability in the cloud — helping them boost profit, eliminate surprises, and reinvest in the next wave of innovation in critical areas like AI.”
This gives companies that are starting to super-scale what they very much need in our cloud-first era: clear cost visibility and control that will help them compete better and spend smarter.
The funding round was led by BlueCrest Capital Management and Innovius Capital, with participation from Matrix Partners, Threshold Ventures, Underscore VC, and G20 Ventures. MongoDB also made a strategic investment in the company.
“AI is redefining what’s possible — but without a deep understanding of cloud unit economics, innovation becomes unsustainable,” said CloudZero CEO Phil Pergola. “CloudZero is pioneering a new standard for cloud cost optimization, giving companies the precision they need to scale cloud and AI responsibly.”
Impact on the channel
This round really drives home how cost optimization is no longer optional in the cloud game. We will likely see better cost management tools become standard practice, opening up new avenues for partners to add value for their customers.
Several years after the cloud boom first began, some MSPs and their clients are beginning to worry cloud is too expensive to justify, or at least more complicated than first believed. Nerdio’s CRO and co-founder, Joseph Landes, shares why he sees cloud cost as an optimization concern and how partners can course correct without losing the agility and other benefits of cloud computing.