Datapipe Buys Newvem, Gains Amazon Cloud Heat Maps

Datapipe will use technology from Israeli startup Newvem to supply pricing optimization to its AWS users.
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Datapipe has acquired the Israeli startup Newvem, which offers the ability to monitor total usage and apply automated pricing intelligence to the usage patterns for Amazon cloud customers. The usage analysis results in recommendations on Amazon Web Services' instance deployment. No purchase price was announced.

Datapipe is a New Jersey-based managed IT service provider. It runs customers' application systems on its own hardware. At first glance, it seems unlikely Datapipe will be able to use Newvem knowhow to provide deployment and billing intelligence to its own facilities.

Many Datapipe customers also use AWS. Datapipe has a front end management service that takes responsibility for the operation of its customers' workloads on AWS. By making Newvem services available, Datapipe will be able to help its customers monitor and manage workloads in the Amazon cloud at the same time they're viewing their managed hosted jobs in the Datapipe data center.

The Newvem system was initially designed to work only with accounts being run in AWS. Earlier this year, it expanded its capabilities to include customer accounts on Microsoft's Azure.

[ Want to learn more about what monitoring intelligence Newvem brings to the Amazon cloud? See Amazon Cloud Costs: Startup Finds Hidden Savings. ]

Datapipe is growing its own infrastructure as a service unit, the Stratosphere Elastic Cloud. Datapipe operates 11 data centers: two in central N.J., two in Ashburn, Va., one in San Jose, two in London, one in Iceland, two in Hong Kong and one in Shanghai. There was no reference to Newvem monitoring being applied to those data centers, but Newvem officials in interviews before the acquisition expressed interest in covering cloud suppliers in addition to AWS.

"Our first focus is providing more value to our Amazon Web Services customers," Ed Laczynski, Datapipe's senior VP of cloud services, told VentureBeat, the San Francisco publisher of venture capital news. "But we see also opportunities in the hybrid cloud and private cloud spaces."

Datapipe offers a version of Stratosphere Hosted Private Cloud that is managed as a private cloud. When Datapipe uses the term "hybrid" cloud computing, it's referring to joint operations between a hosted managed workload and one in the AWS public cloud. Gartner puts Datapipe in its Managed Hosting group as a challenger, but it does not include its Cloud Computing group.

Newvem officials welcomed the acquisition. "This is a great moment for us as a team. We started more than three years ago with a pioneer idea in a small coffee shop in Tel Aviv, at a time when cloud usage was just in its infancy," said Ilan Naslavsky, co-founder and CTO of Newvem in a blog post announcing the deal. "It's amazing to think of the progress we've made…"

Newvem developed a simplified view of a customer's workloads in the cloud, allowing the customer to focus on a single server, group of servers or all groups that were part of a single account.

The Newvem system can draw a heat map from operational information, using colors to show which ones were lightly, moderately or heavily used.

Learn more about cloud computing and virtualization at the Interop conference and expo in New York from Sept. 30 to Oct. 4.

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