Spotinst has spent years collecting data and analyzing spot instance availability and interruption patterns for AWS, Azure and Google Cloud Platform. As enterprises began shifting their focus to containerized applications, the company added a platform-agnostic service to manage
The 451 Take
Spotinst uses predictive analytics to forecast when excess capacity is likely to be available, then dynamically pools spot resources with on-demand and reserved instances to create
Few enterprises have the stomach to manage spot pricing manually or with the help of provider tools: 451 Research's recent Voice of the Enterprise: Cloud, Hosting & Managed Services, Organizational Dynamics 2018 survey found that only 9% of enterprises were using spot resources to pay for public cloud services, versus 52% paying for on-demand usage billed in arrears. As Spotinst describes it, the opportunity for customers is 'like money on the floor that we're picking up for them.'
The company has raised $52.6m of venture funding in four rounds, including a $35m series B led by Highland Europe in August.
ProductsSpotinst takes a customer-centric approach to development, building features, integrations
Earlier in 2018 Spotinst introduced its Managed Container Service, an enhancement to
For lift-and-shift, database or dev/test workloads, Spotinst created an option for running stateful workloads on excess capacity, which is currently supported on AWS but slated to work on other clouds soon. With this service, Spotinst takes periodic backup snapshots of the instance; if the machine is terminated, either by the provider or on a schedule, Spotinst will automatically spin up a replacement and can reattach the root volume, private IP address
Other tools in the Spotinst portfolio complement the company's focus on optimization and automation. They include the Multai Load Balancer with support for hybrid environments including on-premises, Functions for serverless development, and the Spectrum monitoring service for cross-cloud visibility, analytics
Spotinst notes that the pure functions-as-a-service market has not grown as fast as expected. Instead, driven in part by the broad success of Kubernetes, the company is working to enable serverless containers – an area where the
Business ModelPrior to the recent $35m funding round with Highland Europe, Spotinst hadn't yet touched the $15m invested last summer by Intel Capital. It plans to use the cash for R&D, to execute on its roadmap and to grow aggressively, organically with the addition of marketing and sales personnel and possibly also via acquisition. The company cites Highland as a strategic partner that can help it expand further into Europe and accelerate growth while maintaining its customer focus.
Spotinst uses a pay-as-you-save billing model, taking a 20% share of the savings achieved with
The company has a full complement of technology, MSP and reseller partners. It is an AWS Advanced Technology Partner and is available via the Azure Marketplace. The company says the biggest challenge to working with MSPs is that few are incentivized to save customers money, but it cites Logicworks and Israel's AllCloud as exceptions.
Spotinst has more than doubled its
Spotinst does compete with parts of some larger cloud management platforms, including Platform9, which just released a capability for running Kubernetes clusters on AWS spot instances. Cloud vendors themselves have also improved their budgeting and workload-optimization capabilities, most notably AWS, which has added Spot fleet (for automatic bidding on spot instances) and AWS Batch (for automated scheduling and processing of batch workloads) to its portfolio.
Jean is an analyst working across 451 Research's Cloud Transformation team and Digital Economics Unit. In addition to producing the quarterly Cloud Price Index deliverables, Jean covers vendors and cloud providers that offer technology or services to manage or improve public and private cloud TCO, performance or consumption. She has developed a niche in new private-cloud pricing models, including pay-as-you-go and build-transfer-operate.
Jeremy Korn is a Research Associate at 451 Research. He graduated from Brown University with a BA in Biology and East Asian Studies and received
Aaron Sherrill is a Senior Analyst for 451 Research covering emerging trends, innovation