Ternary, a cloud spend management startup, recently announced that they have successfully raised $12 million in its Series A funding round, signaling its dedication to addressing the growing concern of cloud spending across various public cloud providers. The funding round, led by Jump Capital and featuring participation from Fin Capital, RiverPark Ventures, Great Oaks Venture Capital, and Gaingels, propels Ternary’s total raised capital to approximately $20 million.
Sasha Kipervarg, Co-founder and CEO of Ternary, has outlined the company’s plans for the newly acquired funding. It will primarily be allocated towards Ternary’s go-to-market initiatives, the expansion of its revenue team, and further investments in the ongoing development of Ternary’s product offerings.
Kipervarg emphasized the pressing need for better cloud spend management, stating, “Cloud spend is out of control across the industry. The vast majority of compute is still inside data centers, but will eventually migrate to the cloud. Tools are needed to address the vast array of dynamic cloud services being used to build cloud infrastructure.”
Ternary’s genesis can be traced back to the experience of its co-founders, including Kipervarg, Patrick Raymond, and Joshua Kwan, who collaborated on a large-scale cloud data migration project for LiveRamp, a software-as-a-service data connectivity and orchestration platform. Their project incurred an overspending of $300 million, prompting them to embark on the journey to create a solution they wished they had during the migration.
Ternary operates within the realm of FinOps, a sector that has rapidly evolved from its early stages into a robust industry in response to the increasing demand for tools capable of tracking and reducing cloud-related expenses. According to a 2023 Wakefield Research report, nearly three out of 10 developers, engineers, and executives are prioritizing FinOps investments, with 74% of respondents now viewing FinOps as equally important as other established IT disciplines like DevOps and SecOps.
The FinOps market is bustling with competition, with numerous vendors vying for a share of the segment, which is projected to be worth $2.75 billion by 2023. Ternary distinguishes itself by maintaining a nimble approach to product development, leveraging native Google Cloud Platform serverless services to process vast amounts of cloud spending. The platform’s ability to release major functionality at an agile pace is a key differentiator, according to Kipervarg. Half of Ternary’s 25-member team comprises early leaders from notable companies such as Cloudability, Cloudhealth, and CloudCheckr, providing invaluable industry expertise.
Ternary’s solution, like other FinOps products, dissects a company’s significant cloud expenses, offers optimization recommendations, and endeavors to predict future spending patterns. The platform collects real-time billing data from cloud providers like Google Cloud Platform, Amazon Web Services, and Azure, providing insight into the costs associated with various accounts, services, software vendors, and cloud service providers.
Moreover, Ternary employs “human-tunable” algorithms to suggest areas for cost reduction and can be configured to alert users when cloud expenses reach predefined thresholds or experience unexpected spikes. This proactive approach empowers companies to operate in the cloud responsibly and efficiently.
With close to 250 customers already on board, Ternary has plans for significant growth, intending to expand its workforce from 25 employees to 40 within the coming year. The company is confident in its ability to thrive in the cloud management sector, even in the face of broader industry shifts. As the tech world continues to downsize, restructure, and startups call it quits, cloud migrations seem to be holding steady, as Ternary is well-positioned to continually service these brands for at least the coming 24 months with new runway secured.