Sunday, April 21, 2024

Customers Save Over $14M in Cloud Spend With Pump.co

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As of 2023, more than 90% of companies are using cloud services. This number doesn’t come as a surprise as cloud technology has become incredibly popular over the past ten years and has grown rapidly in capabilities in just the past five. As consumer needs grow and expand, companies try to grow at scale to meet the demands. Unfortunately, this growth comes at a hefty cost to the tech industry, which has dedicated almost $600 billion to cloud spend alone.

While large companies can eat the cost, this leaves start-ups in the dust. Pump.co has stepped up with its AI-powered, Groupon-style platform to even the playing field. The company’s biggest draw is its group buying feature, which offers additional savings through group and collective spend billing discounts at scale

AWS typically requires a 1- or 3-year commitment contract to claim discounts, but Pump has been able to break those commitments into smaller monthly chunks and transfer commitments from one customer to another easily through its group buying model, solving what is essentially a space optimization problem. This model also allows the company to monetize its operations through AWS instead of passing the cost onto the customer, which keeps Pump free-to-use.

Pump’s platform uses proprietary AI that’s trained to forecast a client’s cloud spend based on individual historic data. By using these advanced AI algorithms, Pump automatically identifies commitment lengths that are needed not only on an individual customer level but also as a collective. Through continuous algorithmic buying and selling of savings products on the customer’s behalf. 

Because Pump has so much confidence in its AI savings algorithms, in the event of any overcommitments resulting from unused savings plans or reserved instances, Pump will provide a full AWS credit for any related purchases made within 30 days. The company offers savings on 12 different AWS services including EC2, RDS, ECS, and more and the highest levels of security. Customers can rest assured that Pump only has access to the minimal amount of read-only permissions needed to operate. The platform doesn’t have access to a client’s code, consumer data, or network traffic, which means that Pump remains lightweight and deploys quickly.

Pump.co is YC-backed and has reported that over 200 customers have saved over $5M to date. The founding team consists of serial entrepreneurs with a prior exit, and Pump was featured on Forbes AI 50, America’s 50 most promising companies in AI, in 2021. Pump is also an “Advanced Tier Partner” with AWS.

Spandana Nakka, Founder and CEO, comments, “By combining AI automated savings and an intuitive user experience, Pump is democratizing AWS cost savings that historically only the very largest companies have had access to.”

Pump is currently a AWS partner, but the company is hoping to expand to other cloud platforms and deliver to-scale solutions for a broader variety of clients.

Pump is an AI-powered platform designed to help start-up companies save up to 60% on AWS operations with no engineering effort. Pump empowers organizations to achieve cost efficiency and maximize their AWS investment with real-time cost visibility, automated optimization, and continuous monitoring.

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