Why MSPs Need Cloud Cost Management Software for AWS, Microsoft Azure and Google Cloud — Channel Angels

March 17, 2025

0 Views 0

SaveSavedRemoved 0

Let’s face it: Businesses are addicted to cloud services. But without proper safeguards and controls in place, cloud services can also trigger runaway IT consumption costs.

Indeed, 27% of annual public cloud spending involves wasted dollars, according to Flexera’s 2024 State of the Cloud report.

Now, the irony: Major cloud service providers (CSPs) and hyperscalers such as Amazon Web Services (AWS), Google Cloud and Microsoft Azure offer some tools to help customers manage their cloud costs. But why would a major cloud provider want you to reduce your cloud spending?

With that riddle in mind, Channel Angels believes MSPs and their business customers need third-party cloud cost management (CCM) tools for AWS, Google and Azure. So we went hunting for potential CCM investment opportunities in 2021.

Cloud Cost Management Platforms: Our Startup Investments

By 2022, we found and invested in two CCM startups. In other words, we bet on two very promising horses that are running in the same race. They are:

nOps: Founded in 2017, nOps develops an “all-in-one AWS cost optimization platform.” Poke around, and you’ll discover that nOps marketed a bit to MSPs in 2021. Fast forward to 2024, and nOps raised $30 million in Series A finding led by Headlight Partners. For some clues about nOps’ business momentum, consider that Headlight typically invests in B2B software companies that have $3 million to $20 million in revenue, with 25% to 200% year-over-year annual revenue growth (source: LinkedIn).
Ternary: Founded in 2020, Ternary develops a “multi-cloud FinOps platform that helps you easily visualize and understand your cloud bills and other variable cloud-based spend.” Ternary raised $12 million in Series A funding in 2023. Jump Capital led the round. Dig a little deeper, and you’ll see Ternary focused on MSPs — and gaining momentum with channel partners. Kudos to Bob Kilbride, head of channel and alliances, for building the MSP partner program.