SaaS application eliminates wasted cloud spending and provides 1700% ROI to AWS customers of all sizes
Sterling, VA, September 06, 2016 – ParkMyCloud, the leading automated scheduling and optimization tool for Amazon Web Services (AWS), today announced that it has raised a $1.65 million Series Seed round led by Cofounders Capital, with contributions from Tom McGowan of ENRGM LLC, Thomas E. Kolassa, Lane Bess of Bess Ventures, and John Chapel of White Hall Capital.
ParkMyCloud is a simple, single-purpose SaaS tool that enables users to automatically schedule on/off times for their idle non-production cloud computing servers, so they pay only for the time they actually use and avoid wasted spending.
“Companies are spending billions of dollars a year on 24×7 servers, when many of those resources are idle much of the time,” said Jay Chapel, ParkMyCloud CEO and Co-Founder. “ParkMyCloud customers can ‘park’ or pause non-production servers such as development, staging, testing and QA when they aren’t needed, saving companies up to 60% on their AWS bills.”
ParkMyCloud’s current customers – which include McDonald’s, Sage Software, Avid and Wolters Kluwer – have saved a total of nearly $800,000 on their AWS bills so far, with an average ROI of 1700%. This funding round enables ParkMyCloud to bring savings to more of AWS’s one million customers.
“We have been searching for a company to back in the fast-growing cloud computing space,” said David Gardner, General Partner of Cofounders Capital. “ParkMyCloud checked all of our criteria, which included a comprehensive yet cost-effective technology, experienced management team and demonstrable return-on-investment for customers.”
ParkMyCloud plans to add support for additional cloud service providers, including Microsoft Azure and Google Compute Engine, later this year.
ParkMyCloud was founded in July of 2015, released the first version of the product on September 8, 2015, and secured its first customer by the end of that month. ParkMyCloud’s launch and initial growth was made possible by an initial angel investment from Virginia-based White Hall Capital.
ParkMyCloud is a simple, single-purpose SaaS tool that enables users to automatically schedule on/off times for their idle non-production cloud computing servers (also known as “parking”), so they pay only for the time they actually use and avoid wasted spending. Customers, which include McDonald’s, Sage Software, Neustar, Avid, Wolters Kluwer and ZestFinance, save 60% or more on non-production spend. For more information, visit http://www.parkmycloud.com.
At the Amazon Web Services (AWS) Summit in New York City last Thursday, AWS CTO Werner Vogels gave the opening keynote. Any Vogels keynote will be peppered with announcements of new AWS products and services, and this one was no different.
Announcements included the launch of Amazon Kinesis Analytics and updates to Elastic Block Storage, Snowball, the AWS Key Management Service, and details on the forthcoming new AWS region. Vogels also welcomed Lyft, Airtime, and Comcast to the stage to discuss their learnings and gains with AWS.
Vogels also took time for a few moments of retrospective review about how far AWS has come – highlighting the way AWS and other cloud service providers shook up the entire economic model to switch from CapEx to OpEx, the explosion of AWS services in the last decade, and agility.
“A core principle from Lean is to eliminate waste,” Vogels said. “Waste is anything that doesn’t benefit your customers.”
“Where agility really lives is in dev and test,” he continued. “Many say dev and test are not serious workloads. I think dev and test are the most serious workloads in your business, because that’s where agility lives.”
It’s true. And we recently found that about half of compute servers in Amazon are being used for development, testing, and other non-production workloads, so these serious workloads make up quite a bit of customers’ resources.
“One way to save really significant dollars in dev and test is to switch your resources off when you go home. Typically you can save up to 75% on their dev and test costs just by switching resources off when you go home.”
Last week, Dale (ParkMyCloud CTO) held a tutorial web session to share (1) how to get started with ParkMyCloud, (2) what’s new in the platform, and (3) the best ways to use ParkMyCloud in your environment, including best practices from several of our customers.
If you missed it, not to worry. Here’s a recording of the session, with links to points of interest below.
Gartner recently reported that by 2020, the “cloud shift” will affect more than $1 trillion in IT spending.
The shift comes from the confluence of IT spending on enterprise software, data center systems, and IT services all moving to the cloud.
With this enormous shift and change of practices comes a financial risk that is very real: your organization may be spending money on services you are not actually using. In other words, wasting money.
How big is the waste problem, exactly?
The 2016 Cloud Market
While Gartner’s $1 trillion number refers to the next 5 years, let’s take a step back and look just at the size of the market in 2016, where we can more easily predict spending habits.
The size of the 2016 cloud market, from that same Gartner study, is about $734 billion. Of that, $203.9 billion is spent on public cloud.
Public cloud spend is spread across a variety of application services, management and security services, and more (BPaaS, SaaS, PaaS, etc.) – all of which have their own sources of waste. In this post, let’s focus on the portion for which wasted spend is easiest to quantify: cloud infrastructure services (IaaS).
Breaking down IaaS Spending
Within the $22.4 billion spent on IaaS, about 2/3 of spending is on compute resources (rather than database or storage). From a recent survey we held – bolstered by our daily conversations with cloud users – we learned that about half of these compute resources are used for non-production purposes: that is, development, staging, testing, QA, and other behind-the-scenes work. The majority of servers used for these functions do not need to run 24 hours a day, 7 days a week. In fact, they’re generally only needed for a 40-hour workweek at most (even this assumes maximum efficiency with developers accessing these servers during their entire workdays).
Since most compute infrastructure is sold by the hour, that means that for the other 128 hours of the week, you’re paying for time you’re not using. Ouch.
All You Need to Do is Turn Out the Lights
A huge portion of IT spending could be eliminated simply by “turning out the lights” – that is, by stopping hourly servers when they are not needed, so you only pay for the hours you’re actually using. Luckily, this does not have to be a manual process. You can automatically schedule off times for your servers, to ensure they’re always off when you don’t need them (and to save you time!)
At the halfway mark of each year, CRN takes a look back at the previous six months in the channel and throughout the IT world. The Cloud Application Startups category seeks Software as a Service (SaaS) applications offering solutions that broaden notions of what can be achieved by deploying applications in the cloud while solving diverse real-world problems for all types of business users.
ParkMyCloud was selected for our ability to slash AWS bills by more than 60 percent, through our simple app with no up-front costs.
Amazon Web Services (AWS) has grown immensely and recently cracked a $10 billion annual run rate. This means AWS is growing 70 percent year-over-year, which is staggering for a company of their size. Moreover, AWS recently doubled their compute power and now boasts 10 times more power than their nearest 14 competitors combined.
Elastic Compute Cloud (EC2) makes up nearly 70 percent of AWS’s revenue. That is almost $7 billion, and it is growing at 88 percent year-over-year. A little over half of that compute power supports nonproduction workloads, such as development, testing, QA, staging, training and sandbox environments. Many of these environments run 24 x 7, even though they are not being used. It would be like you leaving your car running all the time, even when it’s at home in your garage, which is insane.
So how can companies unlock savings from these non-production environments? Here are four key ways…