According to Gartner, more than $1 trillion in IT spending will be directly or indirectly affected by the shift to cloud by 2020, making cloud computing one of the most disruptive forces of IT spending since the early days of the digital age. CloudHealth’s cloud management platform is riding this wave of corporate cloud adoption.

CloudHealth’s Offerings

Boston-based CloudHealth was founded in 2012 by CTO Joe Kinsella and CEO Dan Phillips. While working at Dell, Joe saw how cloud computing was about to disrupt the tech world and wanted to build a company in the space that would merge his professional passion for systems management and building software to manage infrastructure. He set himself up as an Entrepreneur in Residence at Northbridge Venture Partners and conducted about six experiments before he stumbled into the deep pain points of cloud computing. Companies managing cloud at scale had about a dozen disparate point products and each brought with it a console. However, there was no product that brought together insights from all these products. Joe managed to get customers that would pay for such a product. Read more in my EJ interview with Joe Kinsella, Founder and CTO of CloudHealth.

Today, CloudHealth’s cloud management platform helps businesses manage their complex computing environments by analyzing their operations and providing recommendations for cost optimization, boosting computing performance, migration assessments, and security optimization. From 9 customers in 2013, CloudHealth grew to 60 customers in 2014, 300 in 2015 to over 600 customers in 2016. It targets all types of companies but its sweet spot lies in customers having over 10,000 servers or with 10 plus petabytes of storage running in the public cloud. Its customers include Amtrak, Dow Jones, Acquia, and Sumo Logic.

CloudHealth’s Financials

CloudHealth does not disclose its revenue numbers. Its pricing is based on the complexity of the cloud infrastructure. Its list price is 3% of the amount of money spent on the cloud infrastructure.

CloudHealth is a rapidly growing company. It claims to have grown 400% in 2015 and is reported to have grown 130% in 2016.

CloudHealth is venture funded. It has raised $87.5 million from investors including. 406 Ventures, Kleiner Perkins Caufield & Byers, Meritech Capital Partners, Sapphire Ventures, Scale Venture Partners, and Sigma Prime Ventures. Its latest funding round was held last month when it raised $46 million in a Series D round of funding led by Kleiner Perkins Caufield & Byers. CloudHealth plans to use the funds to increase its workforce from 180 to 250 by the end of the year.

In 2016, CloudHealth had appointed venture capitalist Larry Begley as its Chief Financial Officer to help scale the company.

CloudHealth does want to go public at some point. However, space is seeing consolidation. Last week, Microsoft announced its plans to buy Israel-based Cloudyn for an estimated $50 to $70 million. Cloudyn offers cloud-monitoring software that helps enterprises manage costs effectively and has a strong clientele that includes Hewlett Packard Enterprise and Proofpoint among others.

It will be no surprise if CloudHealth is also acquired at some point by a player like ServiceNow.