ProsperOps Inc., a startup that helps companies reduce their cloud expenses, has secured $72 million in its first funding round since launching in 2018. The investment, led by H.I.G. Growth Partners, with participation from strategic investors, will fund the company’s growth initiatives.
ProsperOps will use the funding to enhance its platform’s capabilities, expand its customer base, and add support for other public clouds besides AWS.
ProsperOps provides a software platform that helps Amazon Web Services Inc. customers maximize the discounts AWS offers to its users to reduce cloud infrastructure spending. The platform automates the acquisition and application of AWS discounts and adjusts discount strategies to prevent cost overruns.
ProsperOps claims its platform delivers average savings of 40%, compared to the 20% or less realized by most companies using AWS discounts. Since launch, the startup says it has saved its customers more than $334 million, including major tech firms like Wix.com Ltd. and Moveworks Inc.
ProsperOps’ funding round signals growing demand for cloud cost optimization solutions as more businesses adopt cloud infrastructure. According to Gartner, global public cloud spending is expected to reach $332.3 billion in 2021, a 23.1% increase from 2020. As cloud usage grows, so does the complexity of managing and optimizing cloud costs.
ProsperOps’ automated approach to cloud cost optimization has resonated with customers, resulting in significant cost savings. With the new funding, the company aims to expand its platform’s capabilities to support other public clouds besides AWS. This move will enable ProsperOps to capture a broader market and help more businesses optimize their cloud costs.
The funding round also enables ProsperOps to invest in growing its go-to-market teams. By expanding its customer base, the company can further scale its business and help more organizations optimize their cloud spending.
Overall, ProsperOps’ funding round is a testament to the growing importance of cloud cost optimization solutions. As cloud usage continues to grow, businesses must find ways to reduce cloud costs while still meeting their infrastructure needs. ProsperOps’ platform offers a promising solution to this challenge, and the company’s strong growth and customer base suggest that the market is responding positively to its approach.