Cloud storage is expensive (especially in this economy), but many companies often overprovision, reducing the full return on investment. Lucidity was created to help them manage block storage more efficiently with a set of automated tools. The startup announced today that it has raised $5.3 million in seed funding. The round was led by AlphaWave Investments with participation from Beenext, Bloom, Bold Capital and NuVentures.
The company previously raised $500,000 in pre-seed funding last year led by Beenext.
Lucidity says its “NoOps” (or fully automated) orchestration layer makes the company’s cloud block storage 70% cheaper and 10x faster with no code changes. It manages storage provisioning to get rid of potential downtime during surge web traffic.
Lucidity was founded last year by Vatsal Rastogi, whose previous roles include a developer at Microsoft Azure and with Indian online food delivery unicorn Swiggy, and former head of sales at TrackXN, Nitin Baduria.
Baduria said many companies moved to the cloud in the wake of the pandemic, but used a “lift and shift” approach, meaning they moved data and apps without changes. Although this is a faster approach, it can lead to overspending and other issues that can hurt ROI. This has made it difficult for companies that previously stored data on on-premise servers to switch to a cloud-first approach.
Lucidity’s customers are typically enterprise and upper mid-market companies that are “cloud transient,” or in the process of moving their data from on-premise servers to the cloud.
But companies often deal with new challenges after a move. For example, many overprovision their cloud storage in hopes of zero downtime, but still face storage outages two to three times a year and a shortage of trained cloud professionals.
“Think of moving house to a place with affordable rent. However, after you move, you realize that your furniture dimensions are not specified for your new home,” says Baduria. “The neighborhood school schedule is different and you have to travel longer distances to work. In other words, to get more affordable rental benefits, you need to spend some considerable investments and time to renovate your home and dynamically plan your daily schedule and travel.
He added that Lucidity’s software can be onboarded in 15 minutes and DevOps teams don’t need to reconfigure storage.
Baduria gives a couple of use cases that show how Lucidity works. The first was a retail and food distribution Fortune 500 company that moved to the cloud four years ago, but didn’t get the ROI promised by public cloud providers. As a result, its cloud storage is over-provisioned, but there is still downtime during web traffic surges.
Lucidity’s orchestration layer detects that 80% of its cloud storage is overprovisioned and used as a buffer. The company used Lucidity’s auto-scaler tool to reduce this buffer to 20%, which reduced their storage costs by nearly 77%. Lucidity’s dynamic provisioning and capacity management features also help prevent downtime during peak traffic.
A second example is a Series C-stage customer data management and data intelligence startup that needs to figure out how to right-size its storage while avoiding service outages due to full cloud storage, but without using resource-intensive DevOps to continuously manage its storage. Size based on changing workload. Lucidity is able to automate many of these tasks with its dynamic storage provisioning feature, and its auto-scaler helps the company manage 75% to 80% utilization.
Lucidity has a “pay as you use” monetization model, meaning customers pay a flat management fee for data managed by its software. It is currently in the early revenue stage and its clients include more than 10 organizations in various stages of the product deployment lifecycle.
The startup’s new funding will be used on its go-to-market strategy in the United States, where it is seeing significant traction, Baduria said. Lucidity has offices in New York, Bangalore and Abu Dhabi.
In a statement, Beenext managing partner Dirk van Kwakbeek said, “Lucidity finds itself at an interesting intersection of what I call the cloud transient, where large enterprises move from on-prem to cloud and there is a lot of slowdown in terms of value. . Lucidity is building something that has a very strong GTM fit in a market that is very large and global in nature.