Stacklet, a cloud governance and cost control startup, has experienced a significant rise in demand as companies prioritize managing their cloud expenditures more effectively. Founded in 2020 by Travis Stanfield and Kapil Thangavelu, former Capital One executives, Stacklet has responded to the economic pressures exacerbated by the pandemic and rising interest rates with a robust platform aimed at cost optimization and governance in the cloud.
Surge in Revenue and Investment
According to CEO Travis Stanfield, Stacklet’s revenue tripled in 2023, highlighting the growing importance of cloud cost management. This impressive growth attracted a $14.5 million investment from prominent venture capital firms, signaling confidence in Stacklet’s trajectory. The latest funding round was led by SineWave VC, with additional participation from Strait Capital, Uncorrelated Ventures, Capital One Ventures, Foundation Capital, and Relentless Ventures. This new capital infusion brings Stacklet’s total funding to $36.5 million.
Comprehensive Cloud Governance Solutions
Stacklet’s platform offers more than just cost control; it provides comprehensive data governance across multiple clouds, accounts, policies, and regions. The core commercial product includes pre-defined policy packs for cloud resource access, customizable user rules, and analytics for policy health and resource auditing. Real-time inventory and change management logs further enhance a company’s ability to manage cloud assets effectively.
In 2021, TechCrunch’s Frederic Lardinois detailed these capabilities, emphasizing Stacklet’s multi-faceted approach to cloud governance, security, and regulatory compliance. The company also maintains a strong open-source presence with Cloud Custodian, a project that began at Capital One and was open-sourced in 2016. Now part of the Cloud Native Computing Foundation (CNCF), Cloud Custodian offers a rules engine through a command-line interface, distinctly separate from Stacklet’s commercial platform.
Importance of FinOps in Cloud Management
As the cloud landscape evolves, so does the need for financial operations (FinOps) to manage cloud spending efficiently. The rising costs associated with AI and other resource-intensive applications have heightened the demand for effective cloud cost control solutions. Stacklet addresses this need by focusing on continuous usage optimization, ensuring developers’ cloud usage aligns with efficiency best practices.
From Stanfield’s perspective, the early days of the company saw little awareness of FinOps. However, the concept has since gained traction, driven by the necessity to control expenses amidst expanding cloud utilization. Stacklet’s approach to balancing growth with efficiency reflects a cautious investment strategy, even with the new funding, prioritizing sustainable growth over aggressive spending.
Market Response and Future Prospects
The recent investment round, although smaller than the $18 million raised in 2021, is seen positively by Stacklet’s leadership. Stanfield expressed satisfaction with the current investment climate, noting the quality of the investors involved and the strategic value they bring to the table.
The focus on cloud cost management is likely to grow as companies continue to expand their cloud infrastructure. Stacklet’s comprehensive solutions and strategic approach to growth position it well to capitalize on this trend. The company’s commitment to both its commercial product and open-source contributions underscores its role in shaping the future of cloud governance.
Conclusion
Stacklet’s journey from a startup to a key player in cloud cost control and governance underscores the increasing importance of FinOps in today’s economic climate. As organizations strive to optimize their cloud expenditures, Stacklet’s robust platform and strategic growth approach ensure it remains at the forefront of this critical industry trend. With strong investor support and a clear vision, Stacklet is well-positioned to navigate the challenges and opportunities ahead.
