Amberflo: The Shift to a Fair and Transparent Business Model

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Puneet Gupta, CEO The Subscription model (per user per month) is flawed. And because it is not value based, it contributes to shelfware, and is often misaligned with customers goals. It requires businesses to commit and pay upfront with very little to no visibility into actual usage and value derived.

Consequently, many solution providers are developing and leading with usage-based pricing. Snowflake, Twilio, Datadog, Algolia and slew of companies have launched or migrated to Usage-Based Pricing and are seeing higher product adoption and revenue growth reflected in higher customer Net Retention Rate (NRR).

"we provide pre-built software development kits (SDKs) to streamline onboarding and meter ingestion"

However, with Usage-Based Pricing (UBP) comes the need to more effectively manage and control underlying cloud costs. However, the current set of cloud cost management providers use an approach that is fundamentally flawed. They parse the underlying cloud providers bill, which are mere invoices of usage, to draw signals and base long-term cost management strategies. This solution simply does not have the fidelity (which customer consumed what resource) to provide meaningful and actionable insights. Additionally, as more and more businesses use multiple cloud providers, this approach further falls flat on its face.

Amberflo is leading this transition with a scalable and cost-effective data infrastructure for usage instrumentation and modern usage-based pricing and billing, enabling businesses to improve UX while experiencing the highest possible revenue and product growth levels. The company provides a platform for real-time usage instrumentation (a.k.a. metering), building customer facing usage-based pricing and billing, and metering of underlying cloud costs and usages, which empowers companies to enforce accountability more effectively across their enterprises and improve the performance and efficiency of their cloud technology.

The founding members of Amberflo held leadership positions for a core cloud provider, AWS, and helped it scale to its current levels. Pooling their collective knowledge, Amberflo's founding members built a solution that helps organizations take control of their cloud costs and resources.

"We provide an AWS-style, general-purpose, highly scalable, cost-effective, platform-oriented, cloud-metering service, which helps companies realize the power of usage instrumentation every time they use a cloud resource," states Puneet Gupta, CEO at Amberflo.
A New Era in Cloud Cost Management

Amberflo's cloud usage metering solutions enable businesses to get ahead of the curve by assisting them in taking ownership of their cloud usage instrumentation. The Metering Cloud solution delivers a full-featured, fully managed usage metering function that enables businesses to ingest, transform, and aggregate meter events in real-time with superior accuracy, availability, and cost-effectiveness. The company's cloud metering infrastructure is highly scalable; built to support high throughput, and deliver low latency in all operating conditions.

Built from the ground up, Amberflo's Metering Cloud delivers optimum accuracy in usage instrumentation by implementing idempotency and deduplication as key attributes of the ingestion pipeline. It tags meter records with a unique Meter ID and timestamp as they are created and sends them to Amberflo for processing and aggregation. With these streamlined processes, the company ensures that each record is processed only once, accompanied by a fully auditable backend infrastructure to resolve disputes.

As cloud consumption comes from varied sources, the Metering Cloud solution allows businesses to measure a range of events, from API calls and cloud infrastructure consumption to IoT systems, platforms, B2B, and B2C SaaS application usage. It provides a flexible meter event data structure, enabling businesses to define any meter and customize the aggregation logic to meet any use case. Companies can define meters to summarize all usage over a time period, to track a unique count based on dimensions such as IP address or user login. Defining meters enables enterprises to calculate the maximum value received over a given time interval and track the length of time a defined event occurs. Amberflo Metering Cloud is one of the first truly developerfriendly platforms fully controllable via APIs, offering engineers fine-grained control of all metering, pricing, and billing aspects.

"We provide pre-built software development kits (SDK) to streamline onboarding and meter ingestion," says Gupta. These pre-built SDKs support many languages, including Python, Java, Typescript, and Go. Users can import a language-specific library to start their cloud cost optimization journey. The company allows users to build, manage, and maintain all functions of the Amberflo platform via code or through the console of its web application. Additionally, with Amberflo's managed services, businesses can empower engineers, DevOps, and technical teams to focus on their core competencies without the need to manage metering infrastructure.

The company delivers its cloud cost optimization capabilities and infrastructure for a fraction of the cost of building out a system using existing technologies, including data warehouses, ETL tools, aggregation and deduplication logic, and time-series databases.
Amberflo Metering Cloud is offered as a serverless, auto-scalable service with simple, pay-as-you-go pricing, including a forever-free tier.

Similar to major cloud providers, Amberflo empowers clients' functional teams with real-time usage and adoption data to inform cross-functional teams across finance and accounting, sales, marketing, customer support, and product development. Based on clients' definitions, Metering Cloud allows their team to pivot the data by meter name, customer name, or any other custom dimension.

The company also alerts clients regarding changes to cloud consumption via emails, Slack or Discord notifications, and Webhook. Clients can set limits based on their preferences and receive real-time alerts and notifications for internal teams and customerfacing services. It also enables them to operationalize data-driven product-led growth (PLG) and other modern sales motions with real-time awareness of customer usage and adoption trends.

With its innovative solution set, Amberflo has assisted many clients across sectors, including B2B, B2C, security, healthcare, and others, in optimizing their cloud costs. A testament to the company's services is a success story of a client that struggled to gain visibility into their cloud usage. The reduced visibility led to higher cloud costs, which was hampering their business growth. By deploying Amberflo's Metering Cloud, the client was able to instrument their cloud usage and fine-tune their operations to optimize cloud costs. Many such collaborations highlight Amberflo's ability to help clients move towards more efficient and transparent business models.


We provide an AWS style, general-purpose, highly scalable, cost-effective, platform-oriented, cloud metering service, which helps companies realize the power of usage instrumentation every time they use a cloud resource


As the cloud infrastructure gets more complex, usage-based pricing is the way forward for businesses to excel in the marketplace. Most industry experts laud this as the holy grail of SaaS pricing models as it tethers a company's profits to customer success. Amberflo is determined to help businesses optimize their cloud costs and gain maximum ROI while achieving success across their enterprises.

Company
Amberflo

Headquarters
Santa Clara, CA

Management
Puneet Gupta, CEO

Description
Amberflo provides a scalable and cost-effective data infrastructure for cloud usage instrumentation and modern usage-based pricing and billing, enabling businesses to improve UX while experiencing the highest levels of revenue and product growth. The company provides improved insights into cloud costs and usages, enabling businesses to enforce accountability more effectively across the company and improve the performance and efficiency of their cloud technology.

Amberflo