Realizing the potential of cloud computing with clarity

Companies that move their operations to cloud computing infrastructure are losing many of the supposed benefits of this transition because they don’t know how to manage their new arrangements. So says the start of technology Claritywhich today announces a $5.3 million seed funding round as it seeks to expand its cloud management solutions business to address this issue.

“The cloud is not a magic bullet that will automatically solve all of your technology problems,” warns Nitin Bhadauria, co-founder of Lucidity. “In many cases, companies just leverage their existing processes and systems and shift them to the cloud; they end up with many of the same problems and challenges.”

The result is disappointment, Bhadurya warns. “CIOs promise their CFOs great returns on investment from the cloud, but many fail to deliver.”

Moreover, this is a growing problem. The move to the cloud has accelerated exponentially over the past three years, with three clear drivers driving organizations away from on-prem solutions.

First, the massive explosion in data volumes, particularly during the Covid-19 pandemic and its aftermath, has greatly increased the demand for an organization’s data centers and systems. Second, responding to this demand is becoming more difficult amid a global shortage of semiconductors, which has limited the availability of devices. and third, many companies are reluctant in any case to make the huge capital investments required by the data explosion; Switching to cloud arrangements effectively enables them to switch to managing this technology through operating expenses.

Taking the leap to the cloud—simulating the cloud-native businesses that have sprung up over the past 15 years and avoiding solutions entirely on-premises—does really offer a potential avenue for solving these problems. But this trip should be carefully planned and managed, Lucid co-founder Vatsal Rastogi warns.

“Eight out of 10 organizations are simply uploading and converting,” he warns. “But to deliver the revenue to the organizations you’re chasing, you need intelligently managed cloud storage.” The analogy, he suggests, is for someone to move into their home to reduce rent, only to find that they are worse off because their furniture has to be replaced or they need longer commutes. This step should be planned for the tour.

Lucidity believes that the biggest problem is that many organizations pay for a lot of cloud storage because they fear a possible outage if their data goes up suddenly or unexpectedly. Over-provisioning of this type averages at 70%, Lucidity argues, and even then, outages still occur. And with the severe shortage of cloud professionals worldwide in the technology sector, most organizations cannot face these issues themselves.

This is where Lucidity believes its product can help. It’s a software solution that sits on top of clients’ cloud arrangements, and manages storage so that it scales automatically as per their requirements – and does so in real time. And in one fell swoop, customers can eliminate over-provisioning, Lucidity argues, while ensuring no outages ever occur.

“Manual cloud management wastes 70% of storage costs,” Rastogi says of the savings he believes Lucidity can achieve. The company also prides itself on its low-maintenance model — it says installations take about 15 minutes, with an extra hour of configurations, after which the software runs automatically with no further intervention required. Lucidity describes its approach as “NoOps”.

Lucidity launched in 2021, took about nine months to build its solution, and has worked with a small number of companies since earlier this year, with nine clients now in various stakes to roll out the product. The solution is not restricted by sector and geography, although Lucidity has a particular focus on the North American market and appears to be attracting the most interest from companies in financial services, retail, technology, and media and entertainment.

The next stage of work is to develop more products and build awareness and understanding among potential customers. “Nine out of 10 companies don’t realize how much money they are wasting,” says Bhadurya.

Today’s fundraising will help in this regard, providing funding for Lucidity to invest in expanding its engineering and development capacity through hiring, as well as in market entry strategies.

AlphaWave Investments is leading the company’s initial round, with participation from Beninext, Bloom Ventures, Bold Capital, Noventures and Sbarro Capital. This follows a $500,000 introductory round led by Pineext in 2021.

“Lucidity makes cloud storage management more streamlined and reliable, and increases cloud storage performance while saving you a significant amount of money,” says Andrew Martinez of AlphaWave. “This is not just a theoretical concept, but something that is on full display as proof of concepts with customers now on board on the Lucidity platform.”

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