IBM Boosts Cloud Cost Optimization with Acquisition of Kubecost FinOps Startup

IBM expanded its cloud cost optimization solutions this week through the acquisition of Kubecost, a leading FinOps startup. Kubecost helps companies like Allianz, Audi and Rakuten monitor costs associated with Kubernetes clusters to boost efficiency and reduce spending.

This move builds on IBM’s existing FinOps portfolio. In 2023, Big Blue purchased Apptio, another prominent player in the FinOps space known for its Cloudability solution. IBM has also previously snapped up cloud management platform Turbonomic and performance monitoring firm Instana.

Webb Brown, Kubecost’s co-founder and CEO, expressed enthusiasm for the acquisition in a blog post. He noted Kubecost’s mission since launching in 2019 has been to optimize global infrastructure starting with Kubernetes cost oversight. The merger allows for broader cost management offerings worldwide.

IBM aims to integrate Kubecost into its FinOps Suite which already features Cloudability and Turbonomic. There is speculation Kubecost/OpenCost may one day become part of IBM’s OpenShift enterprise platform.

OpenCost forms the core of Kubecost’s commercial product. The open-source project launched in 2022 provides real-time infrastructure and container cost visibility. Financial terms of the IBM deal were not disclosed, though Kubecost raised $25 million in 2022 and $5.5 million in 2021 from top venture capital firms.