When Alon Arvatz, co-founder and CEO of PointFive, sat down for his recent New York Stock Exchange interview with Jane King, he painted a compelling picture of a cloud landscape plagued by inefficiencies—one where enterprises unknowingly waste millions of dollars every year. But he also offered a solution: PointFive, a company dedicated to helping organizations maximize their cloud investments. With a fresh $20 million in funding and a rapidly expanding team, Arvatz is positioning PointFive as the go-to name in cloud cost management.
Cracking the Cloud Code
To understand the need for PointFive, Arvatz explained the fundamental challenge of cloud usage. Unlike traditional software purchases, where companies pay once and use it indefinitely, cloud services operate on a pay-as-you-go model. While this setup offers flexibility, it also leads to unexpected and often exorbitant costs at the end of each billing cycle.
“Companies are spending tens or hundreds of millions of dollars on cloud, but a lot of that is wasted because they’re not using it properly,” Arvatz said. “That’s where PointFive comes in. We develop software that maps all inefficiencies in cloud storage and not only identifies them but also helps remediate them.”
PointFive goes beyond just diagnostics—it provides engineers with actionable insights and tools to fix inefficiencies, reducing waste and cutting costs without compromising performance.
Real-World Impact: Millions Saved in Days
Arvatz shared real-world success stories, emphasizing the tangible impact PointFive has on its customers. One enterprise talent, for instance, recouped its entire investment in PointFive within just 10 days of implementation, ultimately saving millions in cloud expenses.
But the company’s mission isn’t just about saving money—it’s about driving broader economic benefits. Arvats recounted another case where a client serving low-income communities leveraged PointFive’s cost reductions to lower their prices and expand access to essential services. “The fact that we help companies reduce their costs allows them to, in turn, reduce the cost of their goods to the general public,” he explained.
AI: A Disruptor and an Opportunity
Artificial intelligence has added another layer of complexity to cloud management. The rise of AI-driven applications has led to an increased reliance on high-performance computing resources, particularly GPUs—some of the most expensive components in cloud infrastructure.
“Companies are really concerned about how much AI will cost in the long run,” Arvatz noted. “This is where we come into play—we optimize the usage of GPUs and AI services, giving companies the confidence to continue their AI journey without spiraling costs.”
The company uses AI-driven anomaly detection to identify sudden spikes in cloud costs, preventing unexpected expenses from spiraling out of control.
Beyond cost management, PointFive also harnesses AI to improve its own offerings. The company uses AI-driven anomaly detection to identify sudden spikes in cloud costs, preventing unexpected expenses from spiraling out of control.
Fueling Growth with Fresh Funding
PointFive’s recent $20 million fundraising round is set to accelerate the company’s growth, particularly in sales, marketing, and research. “In the past three weeks, we’ve doubled our sales and marketing team,” Arvatz revealed. However, the company isn’t just focused on expansion—it’s also doubling down on innovation.
“We’re cutting edge today, but it’s a competitive space,” he acknowledged. “We already see other competitors closing the gaps. For me, it’s crucial to always be ahead of the game and open a bigger gap.”
Summing Up
PointFive aims to evolve beyond cost management. Arvatz envisions the company as a comprehensive hub that helps organizations balance cloud costs with performance, security, and other critical factors.
“We want to be the number one company in cloud cost management,” he stated. “But we also recognize that cost cannot be handled in isolation. When you make cost-related decisions, there are always trade-offs. Our goal is to help organizations make smarter decisions across the board.”
