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 newsletter!

Or
Error: Please check your email address.

Tags cloud computingMergers and acquisitionsinternetbusiness issuesamazon.comClusterK

Featured

Slideshows

Bumper channel crowd kicks off first After Hours of 2018

Bumper channel crowd kicks off first After Hours of 2018

After Hours made a welcome return to the channel social calendar with a bumper crowd of partners, distributors and vendors descending on The Jefferson in Auckland to kick-start 2018. Photos by Gino Demeer.

Bumper channel crowd kicks off first After Hours of 2018
Looking back at the top 15 M&A deals in NZ during 2017

Looking back at the top 15 M&A deals in NZ during 2017

In 2017, merger and acquisitions fever reached new heights in New Zealand, with a host of big name deals dominating the headlines. Reseller News recaps the most important transactions of the Kiwi channel during the past 12 months.

Looking back at the top 15 M&A deals in NZ during 2017
Kiwi channel closes 2017 with After Hours

Kiwi channel closes 2017 with After Hours

The channel in New Zealand came together to celebrate the close of 2017, as the final After Hours played out in front of a bumper Auckland crowd.

Kiwi channel closes 2017 with After Hours
Show Comments