Cloud Waste-When it comes to cloud computing, industry trends gain traction at the same velocity of a revolving door. In 2019, enterprises largely look to be going multi-cloud and seeking ways to improve cost efficiency; the latter a primary concern. By now, companies have adapted to using cloud computing, with early providers like Amazon Web Services (AWS) having cashed in on the demand. And adoption numbers across the board are only increasing.
As a global market, public cloud services are expected to hit $206.2 billion this year, according to Gartner Inc, with cloud infrastructure system services reaching $39.5 billion. $10 billion of that gets wasted annually on public cloud platforms, with $6.4 billion coming from leading cloud services provider Amazon Web Services (AWS). A RightScale report revealed 35% of the average cloud customer’s bill was wasted spend, as that overall cloud waste number is forecasted to rise to $14 billion in 2019.
It’s a costly phenomenon that comes down to mismanagement of cloud resources; at least, according to Forbes 30 Under 30-founded Taloflow; a startup with an AI-powered solution to wasted cloud spend. “Taloflow’s mission is to reveal and optimize the cost of every process running on the cloud,” says cofounder and CEO Louis-Victor Jadavji. Something which he points out has a complex system of oversight that can end up costing businesses millions.
Jadavji has had quite an entrepreneurial journey. Before Taloflow, he cofounded 3D-printed footwear company Wiiv Wearables, which was named to Forbes 30 Under 30 in 2017, has raised over $10 million in venture capital and been backed by VC firms Formation 8 and Evonik. His venture tackling cloud spend is relatively new, something that he and early-stage Wiiv employee Jason Kim came together with Tom Kesselman to cofound in 2018. The concept unexpectedly emerged from work at Jadajvi’s initial venture, as he credits his pivot to the cloud to conversations with Wiiv customers about their biggest business pain points.
“Looking for the right application for technology and cloud costs ended up being one of those major areas where our customers were banging their heads at the end of every month, trying to figure out why the bill was so high,” says the cofounder. So Jadavji & co. took it upon themselves to help those clients by devising a way to reduce their cloud costs.