Expert cloud intelligence and cost reduction platform CloudZero Inc. today said it raised $32 million in Series B financing to expand its platform and empower software teams to manage cloud spending.

CloudZero helps cloud teams eliminate wasteful spending and ship efficient code by tracking usage data from cloud providers such as Amazon Web Services, Microsoft Azure, Google Cloud Compute and others in order to determine ongoing costs. It unifies all costs in a standard format and determines how usage will affect customers.

This includes insights into how a specific change, product or feature impacts cloud spending so the team can collaboratively determine how to handle development decisions. Engineering teams can see real-time, hourly data about and optimize costs before waste occurs.

“Despite the existence of first-generation cloud cost management solutions, the number one pain for FinOps professionals is consistently getting engineers to take action,” said Phil Pergola, chief executive of CloudZero. “CloudZero recognizes that every engineering decision is a buying decision, which is why our platform is purpose-built for engineers.”

The funding round was led by Innovius Capital and Threshold Ventures with continued participation from existing investors Matrix Partners, Underscore VC, and G20 Ventures. The current funding brings the total raised by the company to over $47 million.

CloudZero’s products include a behind-the-scenes dashboard for complete visibility of all cloud spending that a company incurs through all of its usage by ingesting 100% of its cloud activity including infrastructure-, platform-, and software-as-a-service, all in real-time the company says. Using this service, called “CloudZero AnyCost,” the company says that engineers can see what’s happening at any time and stay ahead of changing conditions.

The company also says that it uses artificial intelligence-powered anomaly detection to check up on the fixed and variable costs associated with cloud consumption and spending. That way engineers can prioritize cost efficiency for new features and products while building and working across the entire software and cloud stack.

“Cost management is a challenge for every business that leverages the cloud,” said Justin Moore, chief executive of Innovius Capital. “We were looking to invest in a company that unified all sources of cloud costs into a single platform that was granular enough to help an individual engineer identify the exact line of code or SQL query that was spiking costs, yet broad enough to help finance and operations accurately understand and forecast the company’s unit economics.”

Worldwide spending on public cloud services is forecast to grow tremendously in 2023, according to a report from Gartner Inc. to a total of $597 billion up from $491 billion in 2022. The same report predicts that by 2026, 75% of organizations will be jumping on the cloud bandwagon as part of their digital transformation model, driven by customer experience needs. In that world, cloud spending will become an ever-present existence for these companies.

CloudZero isn’t the only company providing cloud cost intelligence on the market, ProsperOps Inc. emerged in the FinOps space to help reduce public cloud expenses using an AI-driven intelligence solution. Similarly, Achera.ai Inc. also uses AI to automate cloud management for workloads by forecasting compute needs in order to save on cloud costs.

The company said that with the new funding, CloudZero will focus on expanding its platform features and developing further enterprise functionality. To do this it intends to hire more employees with the intention of helping more customers get more value out of their cloud investments.

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