Cloud computing is an integral part of business operations, but managing the escalating costs has become a major challenge for many startups. Enter Pump, a revolutionary company that promises to slash your runaway cloud computing costs. Founded by Spandana Nakka, Pump is not just another cloud-based business; it’s a game-changer that’s making a profound impact on how companies manage their cloud expenses.
Pump’s journey begins with Nakka, a repeat founder who knows firsthand the perils of cloud bills spiraling out of control. In her previous venture, which was R&D- and AI-heavy, they relied on every available cloud provider to exploit free credits, a common starting point for many startups. However, as those credits dwindled, they found themselves ensnared in the costly labyrinth of cloud services. Nakka and her team envisioned a solution that would not only save cloud costs but also provide value to end-users.
Their original plan was to build a credit card that could harness insights from cloud bills, offering users a way to save costs. They quickly realized that the problem with this idea was that customers were reluctant to embrace yet another credit card. Managing a credit card was a whole different beast. Thus, they pivoted to their unique group-buying go-to-market (GTM) strategy. This approach enables Pump to monetize 100% from AWS while keeping their services cost-free for their end customers.
Pump’s distinctive quality is its capacity to tackle the issues brought about by the growing expenses of cloud services. Cloud providers typically have a more affordable yearly pricing plan that needs a one-year commitment and is almost half the cost of an hourly rate. Larger firms frequently take advantage of this, whereas smaller ones find it difficult to budget their spending for the coming year.
By bringing together businesses that spend similarly on AWS, Pump pools enough liquidity to sign one-year contracts and redistribute them across the group so that each company has a contract for more manageable, shorter periods, lowering the risk to the consumer. In the event they can’t find another taker for the contract, Pump takes on the risk. By grouping companies with similar needs, such as generative AI or user-generated content companies, Pump optimizes savings for everyone involved.
Moreover, Pump identified that customers often spend up to 10% on top of their entire AWS bill on AWS business support. This became the problem that PumpGPT was designed to solve. By offering a more cost-effective alternative, Pump is helping businesses redirect their resources to what truly matters.
Pump’s typical users are businesses that spend between $1,000 to $100,000 per month on AWS. Most of their customers are tech startups at various stages of funding, from seed to series C. Their impact is undeniable, with companies like Olaclick, Uberduck and Terra experiencing substantial savings of up to 60% on their AWS costs.
Pump has quickly gained more than 200 customers and is still expanding. Their business approach is to generate revenue by taking a small portion of the volume discounts from the total amount of money spent, with no money coming from the customer.
Pump distinguishes itself in a crowded market because it simplifies the deployment process for clients. Their innovative technology-driven method is free for the user and eliminates the requirement for any technical work from the client.
Looking ahead, Pump intends to expand its cost-saving services from AWS to Azure and GCP while enhancing automation with AI for instant architecture decisions. The company’s core mission of reducing costs will remain paramount as it continues to adapt to emerging technologies and simplify the cloud for businesses worldwide.
Pump is an example of creativity and adaptability, not just a money-saving option. Pump is reinventing how businesses manage their cloud spending at a time when cloud computing is still evolving and setting the pace.
VentureBeat newsroom and editorial staff were not involved in the creation of this content.
Jon Stojan
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