Published on 08, Sep 2023

Pump.co Achieves $14M in Reduced Cloud Spend for Consumers

With more than 90% of companies bringing their team and projects to the cloud, it’s no wonder that tech companies around the world have spent almost $600B USD on operational expenses. 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.

This is a cost that founder Spandana Nakka has felt personally. At her previous startup, they were blindsided by a $800k bill and were completely stunned by the amount. As she retraced her steps to figure out what happened, she realized how quickly cloud spend could spiral out of control. Though she managed to resolve the issue, this sent her on a quest to help spare other start-ups the same fate.

She created Pump.co, which has stepped up as a high-powered, cost-effective solution in the cloud spend crisis. Pump integrates seamlessly with Amazon Web Services (AWS), one of the most powerful cloud computing platforms on the market, through its group buying feature to provide 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 the highest levels of security as well as savings on 12 different AWS services including EC2, RDS, ECS, and more. 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.”

Though Pump is currently a AWS partner, the company is planning to extend its services to Google CloudPlatform, Microsoft Azure, and other computing platforms to deliver more discounts to a broader variety of clients.

ABOUT PUMP.CO

Pump.co, an AI-powered FinOps platform, is designed to help start-up companies save up to 60% on their AWS operations without any engineering effort. As a YC-backed company, Pump delivers powerful, to-scale discounts and maximizes AWS investments with real-time cost visibility, automated optimization, and continuous monitoring.

Find out more about how clients have saved up to 60% on AWS at pump.co.