Newvem Raises $4M From Greylock, Eric Schmidt To Help AWS Customers Spend Less Money

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Startup Newvem, which offers a SaaS based service for Amazon/AWS customers that aims to help businesses spend less money and gain more value from Amazon’s cloud infrastructure, has raised $4 million in funding from Greylock Partners with participation from Index Ventures and Eric Schmidt’s Innovation Endeavors, as well as angel investors, including David Strohm, George Kadifa, and Maurice Werdegar. As part of this financing round, Greylock’s Erez Ofer is joining the Newvem board of directors.

Basically, Newvem’s KnowYourCloud Analytics is a free SaaS solution for Amazon AWS customers, that provides a 360-degree view of AWS cloud usage, revealing issues and anomalies in their cloud, and recommending actionable insights that help solve not just cost efficiency, but security, availability, and utilization issues.

Newvem will analyze and determine whether a user’s environment is meeting expectations from a cost, availability and security perspective and detect and notify where it is not up to par. The app is built for Business Managers, IT Managers and Dev Ops to “get to know” their clouds, so they can better see what resources are being used and not used.

Cloud spending can be expensive and Newvem aims to help users pinpoint where to optimize their resource usage and budget consumption. Integrated with AWS, Newvem tracks down-to-the-minute resource usage, learns the behavior of every resource, and identifies service level variations and life-cycle events.

You can see some of the common mistakes that companies make when spending on Amazon Web Services here. These include picking oversized instances, provisioning too many instances, failing to make the right trade-offs when selecting instance types and leaving instances running idle.

In the future, Newvem will continuously and automatically gather numerous streams of cloud operational data, analyze and learn the usage patterns, automatically detecting potential problems, pinpointing anomalies, and identifying trends in cloud deployment. Basically, the startup analyzes all of this data from a multitude of sources and recommends where you can allocate or not allocate resources to optimize spending.

Newvem was founded by Zev Laderman, who has sold two IT companies, including Aduva to Sun Microsystems and Tradeum to VerticalNet; and Ilan Naslavsky; a former Lead Engineer at Sun.

Laderman tells us that since the launch of its free products, 300 customers are using KnowYourCloud Analytics, which is currently in private beta. The new funding will be used to build out the SaaS’ analytics engine to provide additional insights in what provides value for customers.

In the future, Newvem will be expanding to other public cloud services including Rackspace, Microsoft Azure, HP Openstack and others. “The plans are to take current service to to other public services but we still see so much growth in Amazon and are focused on becoming deeper and broader in analyzing AWS data,” Laderman explains. He adds that Newvem also want to tackle hybrid cloud platforms.

There are a number of startups that want to help companies save money on AWS and other cloud services. But Newvem has a compelling take on optimizing cloud spend, considering the data analysis angle. And the company calls their approach “analytics-driven cloud management.”