Optimaze, an AI-based “cloud waste” startup, just secured a significant pre-Seed funding round to tackle the growing problem of wasted cloud resources.
AI Startup Optimaze Raises $3M to Cut Cloud Waste
Optimaze has successfully raised $3 million in pre-Seed funding. This Sydney-based startup is currently operating in private beta, offering preview access to its software via a waitlist. The infusion of capital will be used to expand its engineering team, accelerate its product roadmap, and establish strategic partnerships with cloud services, beginning with AWS.
Why is Cloud Waste Such a Big Deal?
Australian spending on cloud computing is projected to reach a staggering $15 billion next year. According to Gartner estimates, at least 30% of this cloud spend is simply wasted. Optimaze founders Ralf Capel and Dawshiek Yogathasar believe that the actual cost and inefficiency could be much higher than $4.5 billion, especially when considering the environmental impacts.
“Cloud waste has spiralled out of control, costing businesses billions and demanding roughly 1% of global energy consumption,” said Capel. He added that companies are exacerbating the problem by pouring more money into expanding cloud infrastructure and financial operations instead of addressing the core issues.
How Does Optimaze Plan to Tackle Cloud Waste?
AI-Augmented Platform
Optimaze’s AI-augmented platform aims to enhance enterprises’ ability to identify and act on cloud waste at scale, quantifying the financial impact in real-time. According to Cape, companies that are cloud literate can reduce their on-demand cloud use by 30% through clever optimization. His cofounder, Dawshiek Yogathasar, hopes to reduce human tasks, such as tagging resources, by 90% and improve the environmental impact.
Environmental Impact
Yogathasar emphasized the growing concern over energy consumption, stating, “The energy waste in Australian cloud environments is already staggering, and as AI workloads intensify, energy consumption is becoming a major bottleneck.”
What’s the Expert Take on Cloud Spending?
Anthony Potts of Arconic noted that cloud spend is rapidly becoming the largest controllable cost after payroll. “It’s exploding as every business from SMBs to corporates deploy AI-heavy GPU workloads,” he said. He further added that businesses will increasingly need to quantify which workloads create the most value. Optimaze’s AI agents deliver that insight in real-time and automates fixes, setting a new standard for financial and environmental accountability in the cloud.
The Bigger Picture: Global Cloud Spending
Globally, spending on cloud services is expected to exceed $1.5 trillion by 2026. With such massive investment, the need for efficient resource management and waste reduction becomes even more critical.
What Does This Mean for the Market?
- Increased Efficiency: Companies can significantly reduce their cloud spending by leveraging AI-driven optimization tools like Optimaze.
- Environmental Benefits: Reducing cloud waste translates to lower energy consumption and a smaller carbon footprint.
- Improved Financial Accountability: Real-time insights into cloud spending enable better decision-making and resource allocation.
Ready to Optimize Your Cloud Spend?
If you’re interested in reducing your cloud waste and saving money, consider exploring AI-driven optimization solutions. Join the waitlist for Optimaze’s private beta to get a first look at their platform. Also, explore other resources on cloud cost management and sustainable cloud practices to learn more.
