XOsphere

Xosphere, founded in 2017 by Alan Hand, operates as a specialized cloud orchestration software provider headquartered in Los Angeles, California. The company has secured funding from institutional investors, including Idealab and eLab Ventures.

The firm's core business revolves around its proprietary platform, the Xosphere Instance Orchestrator, which is designed to significantly reduce cloud infrastructure costs for enterprises, particularly those utilizing Amazon Web Services (AWS). The business model is a self-hosted subscription software-as-a-service (SaaS) where clients pay based on monthly usage, specifically a percentage of the EC2 On-Demand rate for each instance managed by the software. This pricing structure is outcome-based, meaning clients are only charged if the service generates savings.

Xosphere's primary product, the Instance Orchestrator, targets the optimization of AWS EC2 instance costs by intelligently managing AWS Spot Instances. Spot Instances are Amazon's unused EC2 capacity, available at a discount of up to 80-90% compared to On-Demand prices, but they can be reclaimed by AWS with little notice. The software mitigates the inherent unreliability of Spot Instances by transforming them into robust resources with reliability comparable to On-Demand instances. It achieves this by automatically switching between Spot and On-Demand instances based on price and availability, ensuring applications remain operational without interruption. The platform integrates with native AWS tools like Auto Scaling Groups and can be installed in under 10 minutes via CloudFormation or Terraform. It operates securely within the client's own cloud account, ensuring data privacy and control. Key features include reserved instance prioritization, automatic diversification of spot instances, connection draining for load balancers, and native integration with container services like Kubernetes and ECS.

Keywords: cloud cost optimization, AWS spot instances, cloud orchestration, FinOps, EC2 cost savings, instance orchestrator, cloud infrastructure management, self-hosted SaaS, automated cloud savings, AWS cost management, spot instance management, cloud resource optimization, tag-based configuration, Kubernetes cost optimization, server cost reduction, infrastructure as code, AWS Lambda, cloud financial management, IT cost savings, dynamic resource allocation