Aside from salary expenditures, one of the main expenses that technology companies face is their varied activities on cloud providers such as Microsoft, Amazon, or Google, along with many other different services that the company needs to launch its product or promote processes. An Israeli startup today (Thursday) announced that it wants to help you put these expenses in order and save money.
One “Mega-bill” to control all expenses
Finout has developed a product that consolidates all the invoices you receive for the various cloud services for which you pay into one huge invoice and allows visibility into the cloud expenses – in just a few minutes. Finout's product connects to cloud services and other usage-based pricing services using APIs, or if available, the cloud provider reports (AWS Cost and Usage Report for example).
"Once all the information is in Finout, we break it down into the smallest units possible. For example, Kubernetes is very costly – we pay AWS by the server, but what we really care about is the cost of each Pod. To understand that, we can connect to external information services and 'break' the raw cost, "says the company's CEO and one of the founders, Roi Ravhon, in a conversation with Geektime.
Ravhon says that from there the system connects to services like Datadog or Prometheus to understand the relative cost of each pod from the server running on it – specifically for Kubernetes – and thus know how to give the company a much more accurate picture of the costs. According to him, Finout’s system can understand the cost of a folder inside the S3 Bucket, the cost of the Snowflake Query out of the total Credits and more – and it all sits within the mega-bill they create for companies.
Once all the invoices are in the Finout system, each line-item show the business justification for the cloud expenses (concerning revenue) – each line-item can be attributed to the product, the specific content, the staff and more, with the help of using advanced assignment rules, and virtual tagging. Finout can then connect the cost to unit economics with the help of external information coming from the enterprise systems such as Salesforce, Datadog, Looker and more. In addition, the technology allows you to add revenue information, to show a profit margin for each customer.
By diving into the data, Finout’s system can look at the many services each company works with and, for example, understand answers to business questions like how much it pays for each customer for all the services in the company's cloud or how much Kubernetes Namespace cost.
Announcement of $18 million in funding
Finout has raised a total of $18.5 million in funding. Their Seed funding round, about a year ago, was led by Pitango First, with participation from toDay Ventures and several angels, and brought a total of $4.5 million. Today (Thursday) the company also announced it closed a $14 million Series A, which was led by Team8 Capital with the participation of R-Squared Ventures, Jibe Ventures, and Ariel Meislos.