Menu
Amazon buys ClusterK, a firm that helps users buy cloud capacity cheap

Amazon buys ClusterK, a firm that helps users buy cloud capacity cheap

ClusterK helps companies use AWS spot instances for mission-critical applications

Amazon has acquired ClusterK, a developer of software that helps companies run mission-critical applications on spare cloud compute capacity sold by Amazon Web Services.

A spokeswoman for AWS confirmed the acquisition, but did not provide further details.

Spot instances are spare Amazon EC2 (Elastic Compute Cloud) instances for which users name their price. The price for the spot instances can vary in real-time depending on demand and supply. The instance will run until the spot price exceeds the bid or the user terminates it.

This is in contrast with AWS On-Demand instances that let users pay for compute capacity by the hour without long-term commitments, or Reserved instances, which provide capacity reservation. AWS has positioned spot instances as the option to use when customers have flexibility in when their applications can run.

ClusterK in Palo Alto, California, however, promised customers high availability even when using the lower-cost spot instances. "Any single Spot Market can be highly volatile and, in isolation, not appropriate for mission critical applications," it wrote on its website. ClusterK automates the use of multiple instance types, across multiple availability zones to create a highly available platform ideal for mission-critical applications, it added.

If available spot markets disappeared or exceeded On-Demand pricing, ClusterK's Balancer would rebalance to On-Demand capacity to ensure the application remains available, and then "opportunistically rebalance" to spot markets as they became available and cost-effective.

AWS may have decided to buy the startup to give its customers cheaper cloud options around its spot instances, even as its competitors are cutting prices.

Amazon paid between US$20-50 million for ClusterK, an investor in the startup told VentureBeat in an interview.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuesamazon.comClusterKcloud computinginternetMergers and acquisitions

Featured

Slideshows

Reseller News launches inaugural Hall of Fame lunch

Reseller News launches inaugural Hall of Fame lunch

Reseller News welcomed 2015 and 2016 inductees - Darryl Swann, Dave Rosenberg, Gary Bigwood, Keith Watson, Mike Hill and Scott Green - to the inaugural Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed how the channel can collectively work together to benefit New Zealand, the Kiwi skills shortage and the future of the industry. Photos by Maria Stefina.

Reseller News launches inaugural Hall of Fame lunch
Educating from the epicentre - Why distributors are the pulse checkers of the channel

Educating from the epicentre - Why distributors are the pulse checkers of the channel

​As the channel changes and industry voices deepen, the need for clarity and insight heightens. Market misconceptions talk of an “under pressure” distribution space, with competitors in that fateful “race for relevance” across New Zealand. Amidst the cliched assumptions however, distribution is once again showing its strength, as a force to be listened to, rather than questioned. Traditionally, the role was born out of a need for vendors and resellers to find one another, acting as a bridge between the testing lab and the marketplace. Yet despite new technologies and business approaches shaking the channel to its very core, distributors remain tied to the epicentre - providing the voice of reason amidst a seismic industry shift. In looking across both sides of the vendor and partner fences, the middle concept of the three-tier chain remains centrally placed to understand the metrics of two differing worlds, as the continual pulse checkers of the local channel. This exclusive Reseller News Roundtable, in association with Dicker Data and rhipe, examined the pivotal role of distribution in understanding the health of the channel, educating from the epicentre as the market transforms at a rapid rate.

Educating from the epicentre - Why distributors are the pulse checkers of the channel
Kiwi channel reunites as After Hours kicks off 2017

Kiwi channel reunites as After Hours kicks off 2017

After Hours made a welcome return to the channel social calendar last night, with a bumper crowd of distributors, vendors and resellers descending on The Jefferson in Auckland to kickstart 2017. Photos by Maria Stefina.

Kiwi channel reunites as After Hours kicks off 2017
Show Comments