Duckbill’s Skyway: Revolutionizing Cloud Cost Management with $7.75M Investment

The Transformation of Duckbill: From Cloud Cost Consulting to Software Development

Duckbill, a consulting firm founded by Corey Quinn and Mike Julian, has announced a significant shift in its business model. The company, known for its expertise in cloud cost management, is venturing into the software industry with the launch of a new platform called Skyway. This move comes after Duckbill secured $7.75 million in funding from Heavybit, Uncork Capital, and Encoded Ventures to support its transition.

Aiming for Predictability in Cloud Spending

Unlike traditional cloud cost management approaches that focus on reducing bills, Duckbill’s Skyway platform targets the unpredictability of cloud expenses for large enterprises. Corey Quinn emphasized that the real concern for finance teams is not the total cost but unexpected spikes in cloud spending. Duckbill’s goal is to provide a solution that offers predictability and transparency in cloud expenditure.

Challenges in the Cloud Cost Management Sector

Julian highlighted that existing cloud cost management tools are primarily designed for startups, overlooking the unique challenges faced by large enterprises. Duckbill’s clients, including major companies like Airtable, Ticketmaster, and New Relic, spend an average of $70 million annually on cloud infrastructure. This scale of operations requires tailored solutions that address specific patterns and issues.

Expanding Beyond AWS

While Duckbill initially focused on Amazon Web Services, its vision now extends to encompass Google Cloud and Microsoft Azure. The company aims to structure spending data across all software and infrastructure used by organizations, including SaaS tools, AI providers, and legacy data centers.

The Transition to Software

Julian acknowledged that Duckbill’s pivot to software development may impact its consulting business but believes there is a demand for both services and software offerings. By leveraging their experience in negotiating cloud contracts and managing spending, Duckbill aims to provide innovative financial planning and forecasting software for infrastructure.

Embracing AI in Cloud Cost Management

While Duckbill currently does not utilize artificial intelligence in its products, the company recognizes the potential of AI in enhancing cost prediction and optimization. Julian emphasized the importance of structured spending data in creating valuable insights for customers, referring to it as “AI candy” that can be utilized effectively.

Growth and Future Plans

With a team of 10 employees, Duckbill plans to expand to 15 employees by the end of the current quarter and 20 by the year-end, with a focus on engineering hires. The company’s strategic recruitment of Jim Moses, a former AWS private pricing negotiator, underscores its commitment to developing robust solutions for cloud cost management.

Lessons Learned

Reflecting on past experiences, Quinn and Julian acknowledged the challenges of transitioning from services to software. Quinn emphasized the importance of customer feedback and communication in product development, highlighting the pitfalls of assuming customer needs without proper validation.

Get in Touch with Duckbill

For more information about Duckbill and its services, you can visit their website or contact them at 833-AWS-BILL. The company remains committed to providing innovative solutions for cloud cost management and financial forecasting.