Lucidity Secures $21M Funding for Cloud Storage Optimization

Cloud Storage Optimization: Lucidity's Approach to Cost Reduction

Many organizations unnecessarily over-allocate cloud data storage capacity to accommodate peak demand periods. This practice, while intended to ensure consistent performance, results in substantial financial expenditures. Often, internal DevOps teams concentrate on server optimization, neglecting storage optimization due to concerns about potential data loss or service interruptions.

Consequently, a significant portion of cloud storage resources remains unused or inefficiently utilized.

Wasted Cloud Spending

A Deloitte report, based on public surveys, indicates that as much as 30% of cloud expenditure is wasted. This waste stems from factors like pay-as-you-go pricing models, insufficient visibility into usage, overprovisioning, and unexpected costs.

Lucidity's Solution

Indian startup Lucidity is focused on resolving this issue through automated storage optimization for cloud environments. Their software dynamically adjusts block storage volume sizes based on real-time data requirements.

The company claims this optimization process can lead to cost savings of up to 70% for enterprises.

Series A Funding

Lucidity has secured $21 million in Series A funding, spearheaded by WestBridge Capital. These funds will be allocated to team expansion and continued product development.

Alpha Wave Global, an existing investor, also participated in this funding round.

NoOps: An Application-Agnostic Layer

Lucidity offers a product called NoOps, an application-agnostic layer that integrates seamlessly with existing applications and environments. Co-founder Nitin Bhadauria explained that this integration requires no modifications to application code.

A Gap in the Market

While major cloud providers like AWS, Azure, and Google Cloud offer basic optimization tools, Bhadauria asserts that no current solution specifically addresses comprehensive cloud storage optimization.

These providers primarily concentrate on enabling customers to deploy increasing amounts of data to the cloud.

Limited Competition

This lack of direct competition is a key factor in Lucidity’s market position. The startup, founded four years ago, perceives the prevailing industry practice as its primary challenge.

“Our main competition isn’t another company; it’s the existing mindset that this problem isn’t being addressed,” Bhadauria stated in an interview with TechCrunch. “Customers recognize the issue but assume it’s an inherent aspect of cloud storage management.”

Lucidity's Product Suite

Lucidity was established in 2021 by Vatsal Rastogi and Nitin Bhadauria, both experienced SaaS entrepreneurs. The company currently provides two products: Storage Auto-Scaler and Storage Audit.

Storage Auto-Scaler

Storage Auto-Scaler dynamically adjusts the size of block storage on cloud servers. Deployment as an agent on the server initiates the optimization process within one hour, according to Bhadauria.

The company is currently seeking patent protection for the underlying technology and has not disclosed specific technical details.

“We resize the buffer without directly manipulating data, ensuring cost savings without risking data integrity or downtime,” Bhadauria clarified.

Storage Audit

Storage Audit is a freely available tool that allows enterprises to assess their cloud storage utilization and identify potential cost savings.

Target Market

Lucidity focuses on Fortune 2000 companies with annual revenues exceeding $1 billion, located in the U.S. and Europe.

While Bhadauria did not reveal the exact number of customers, he indicated that 70% are based in the U.S., with the remaining 30% in Europe. Notably, 20% of their clientele are within the Fortune 100.

Future Plans

Lucidity intends to extend its optimization capabilities to object storage in the future, Bhadauria added.

Total Funding

This Series A round brings Lucidity’s total funding to approximately $32 million. Previously, the startup raised $5.3 million in seed funding from Alpha Wave in September 2022.

Allocation of Funds

Half of the new funding will be used to expand the company’s go-to-market team. The remaining funds will be invested in product enhancement.

“We are preparing to launch another product within the next six months,” Bhadauria announced, adding that the company plans to introduce additional modules over time to further optimize cloud storage.