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AWS Snags TSO Logic, Developer Of Cloud Cost Optimization Technology

It’s the cloud leader’s second acquisition in as many weeks that adds capabilities sought by enterprises conducting cloud migrations.

With its second acquisition in as many weeks revealed Tuesday, Amazon Web Services continued to add technology to its portfolio useful to enterprises conducting cloud migrations.

The deal for Vancouver-based TSO Logic delivers a platform that helps enterprises right-size their environments and determine total cost of ownership. The startup's software is often used by solution providers deciding where to host workloads—whether in private or public clouds—by accurately comparing their respective costs.

That can be of benefit to the cloud leader as it prepares to release Outposts, its first on-premises solution, and further embraces hybrid cloud and workload portability through its partnership with VMware, said Robb Allen, CEO of effectual, an AWS consultancy based in Hoboken, N.J.

[Related: AWS Growth Slows Slightly, But Profits Ramp With Data Center Efficiencies]

"TSO's ability to provide deep insight into both on-premises data center environments and AWS cloud environments is a compelling value proposition," Allen told CRN.

Terms of the deal were not disclosed.

TSO Logic was founded in 2013 by its current CEO, Aaron Rallo.

The startup offers an integrated, open platform to optimize application delivery in any data center environment. The software delivers visibility into IT operations, actionable analytics and automated controls for improving performance.

Some AWS partners rely on TSO Logic to select the most cost-efficient environments and convey accurate pricing to clients for their future requirements. One of Amazon's largest implementers, Seattle-based 2nd Watch, uses the platform as part of its Cloud Migration Cost Assessment service, the company told CRN last year. 

“2nd Watch was excited to see the news regarding the acquisition of its valued partner,” Chris Garvey, EVP of product at 2nd Watch, told CRN.

The deal will strengthen the portfolio of services available for existing and potential AWS customers, and extend the solution provider’s already strong partnership with AWS, he said.

And with the coming Outposts on-premises solution, “TSO Logic will likely soon play a key role in the decision process for AWS workloads extending to virtually any data center, co-location space, or on-premises facility,” Garvey said.

TSO Logic says on its website its technology "ingests millions of data points from your current environment, including age, generation and configuration of all hardware and software they’re running and each instance’s historical utilization."

That data, combined with machine-learning algorithms, is used to create a statistical model of compute patterns to predict an accurate spend, as well as inform users of where resources are over-provisioned, and where savings can be realized.

Last week, AWS bought CloudEndure, another startup that offers technology used in the migration process, as well as for disaster recovery.

Reports in Israeli media pegged the price of the Israeli data migration specialist somewhere in the $200 million to $250 million range.

With the acquisitions of TSO Logic and CloudEndure, 2019 is starting out as a very active year for cloud mergers and acquisitions, said effectual's Allen.

"We see these acquisitions as yet another indication that game-changing technology and talent are highly coveted and in short supply," Allen told CRN.

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