Coatue supports Kubercost’s goal of delivering data to millions of Kubernetes developers – TechCrunch

Startups

In the past year, Kubernetes adoption exploded, with more than 5.6 million developers using the cloud-native tools — a 67% increase from the previous year.

For those who need a refresher on Kubernetes, it is an open source container project created by Google in 2014 to automate, monitor, and run applications.

Kubernetes is one of the most widely used tools by cloud native developers and can be challenging as a business grows, but Kubecost aims to alleviate some of those growing pains through its open source tools to monitor, manage and optimize data. Kubernetes spend at scale.

The company was founded in 2019 by two former Google employees, Webb Brown and Ajay Tripathy, who previously worked on infrastructure monitoring solutions for Google infrastructure and Google Cloud.

“There has been, by far, a cost, performance, and reliability issue with this major transition to containers,” Brown told TechCrunch. “Teams got benefits, but completely sacrificed visibility of spending, sort of like a multimillion-dollar payroll, but not knowing which department, which team, or which individuals are getting paid.”

Without that visibility, Brown explained that the downstream effects could be seen in additional waste — he’s seen teams spend 80% too much in some cases if they don’t know the cost of a product.

Kubecost recognizes the need for teams to issue safety nets to cushion future shocks and wanted to provide the real-time cost visibility and insights needed to continuously monitor and reduce millions of dollars of Kubernetes-related cloud costs.

The company’s core product is open source and freely available to teams, which Brown says will always be true. It also has a commercial product for businesses that can be functionally installed in minutes and can be tried or used without going to the sale.

Customers don’t have to share information with Kubecost, but instead, the technology takes the open source information and brings it into the customer’s environment and integrates it with the cloud or on-premise data center.

From there, information is collected in real time and insights are provided that show all areas where a company is spending resources, driving up costs and why costs are rising. Kubecost then provides insights into how to reduce costs and sends alerts or can help set policies so that it can be managed over time.

Kubecost

Image Credits: Kubecost

Kubecost already works with more than 2,000 companies, including more than 100 enterprise customers — a number that jumped three times last year with five times the engagement metrics — and manages more than $2 billion in Kubernetes spending. The company’s annual recurring revenue grows three times a year. Brown didn’t share a specific company valuation, but said it was five times higher than last year.

As adoption is expected to go through, the company has secured $25 million in Series A financing in a round led by Coatue Management, with the participation of seed investors First Round Capital and Afore Capital. As part of the investment, Coatue partner David Cahn will join the Kubecos board of directors.

The new capital will invest in recruitment across the board. Kubecost’s origins started with open source, and Brown plans to make some major investments in that community and in more features. It is also preparing to roll out many new features, integrations with other products in the ecosystem, and more development in insights and optimizations.

In addition, the company is also starting its journey with ‘Hosted Kubecost’, an added value for teams who, after trying the product, want the company to manage the functionalities on their behalf.

“Overall, there’s been an amazing wave of fundamental transformation from cloud to containers that if you look at it is as big as the transition from data centers to the cloud, so we expect this to continue,” Brown said. “Kubernetes is at the heart of the modern enterprise tech stack. We plan to go deeper into that to make transitions and arrive at a high-quality product that can run all applications through it.”

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