Amazon has purchased ClusterK, a startup that helps developers cut down on their cloud service costs by taking advantage of a little-used product from Amazon Web Services called Spot instances. According to a report by VentureBeat’s Jordan Novet, the acquisition was worth between $20 and $50 million.
ClusterK’s product predicts the price of Spot instances, and then distributes the workload from its customers across all of those instances to make couple applications cheap while remaining stable. The company claimed to get as much as a 90 percent price reduction for its users compared to Amazon’s on-demand instances.
The deal may signal that Amazon plans to do more with Spot instances going forward, which makes sense at a time when cloud pricing for infrastructure services continues to drop. Amazon is locked in tight competition against other providers like Google and Microsoft, and bringing ClusterK’s cost-saving solution to more users could make the company’s offerings more appealing to firms that want to move into the public cloud but don’t want to face high costs.
A representative for Amazon confirmed the deal in a statement emailed to GeekWire, but declined to comment on the company’s plans for ClusterK or the terms of the deal.