As the use of AI accelerates, demand for cloud services has surged, with global cloud spending expected to surpass $2 trillion by 2030, according to Goldman Sachs Research. However, without effective management, this growth can lead to costly inefficiencies that undermine returns on investment (ROI). Yodar Shafrir, formerly of Run, observed these inefficiencies firsthand, where unused resources led to high costs and frequent application crashes due to insufficient resources. The need to optimize resource allocation often distracted DevOps teams from their primary development work.
Recognizing these challenges, Shafrir and Guy Baron, former head of R&D at Wix, co-founded ScaleOps, a startup dedicated to optimizing cloud resource usage. ScaleOps operates within the FinOps space, a segment of cloud cost management that includes competitors such as CloudHealth (owned by Broadcom), IBM’s Kubecost, Cloudability, and various startups like Exostellar and ProsperOps. Like its peers, ScaleOps uses automation to optimize cloud management, tailoring resource allocation to the specific needs of each application to minimize waste and costs.
ScaleOps is designed to operate flexibly, supporting any cloud environment, whether public, on-premises, or air-gapped. This flexibility allows DevOps, FinOps, and application teams to work seamlessly, optimizing resources, reducing waste, and improving performance. Shafrir notes that ScaleOps’ approach is especially appealing to companies looking to maximize efficiency amid economic pressures, with a growing client list that includes firms like SentinelOne, Cato Networks, and Wiz. The company aims to serve over 100 clients by the end of the year.
This momentum has attracted significant investment, with ScaleOps raising $58 million in a Series B funding round, led by Lightspeed Venture Partners, bringing its total funding to $80 million. These funds will support ScaleOps' planned expansion from 60 employees to over 200 by 2026, helping the company meet the rising demand for cloud management solutions. With FinOps becoming increasingly mainstream—over 80% of companies now have a dedicated FinOps team—ScaleOps is positioned well to continue addressing the industry’s push toward operational efficiency and cost reduction.
