 Hey, welcome back everybody. Jeff Frick here from theCUBE. We're in our Palo Alto studios for a CUBE conversation and we've just talked about it time and time again, right? It's the big companies that have the big shows. We do a lot of those big shows, but it's really the startups that really make Silicon Valley, Silicon Valley. They're constantly starting. People are leaving companies, starting new companies. And this is a great story. A company who actually visited in 2016 or had a quick catch up at RSA and we're excited to get an update two years later. And so to welcome the studio, Amraam Chakkar. He's the founder and CEO of SpotInst. Amraam, great to see you again. Absolutely great to see you again as well. I couldn't believe it's been since 2016 when I looked it up and that was like in spring I guess. So a lot of stuff has happened in the last two years. Give us an update on SpotInst. Whoa, like how do I summarize two years of a startup? Like every quarter is like a year for a startup, right? So I think right now we're just, we've been like three employees when we talked last in 2016 and now we're over a hundred. Grew the company, like today we're headquarters in San Francisco, office in New York, office in Tel Aviv, grew our customer base to like over a thousand today. Over a thousand customers. Over a thousand customers today and just keeping on trying to keep the growth on. Right, well you made a smart move early on as you connected your train to the rocket ship that is public cloud. And I think when we first talked a couple years ago you were participating in the AWS marketplace and now you've since added, I think you said Google and obviously Microsoft is yours. So again for the people that don't know SpotInst give them kind of the quick 101. Yeah, so if you look at the cloud infrastructure space so Amazon was like the leader since we all knew what is cloud infrastructure and cloud infrastructure by definition they have access compute capacity. Access compute capacity is there for support natural growth and support spikes in demand of AWS customers. So Amazon always want to take these access compute capacity and have it like available for customers to purchase it. Right. But still they want to have some access to that capacity whenever they need that. So there is no guarantee, there is no SLA. So what we wanted to do to enable customers to use that access compute capacity because they can buy it in very cheap price and we are the software that helps them to get the SLA. So that's what SpotInst does, enabling companies to unlock more compute for a reasonable price. So do you buy it and then resell it back to them so that you can control the management and or you know, apply kind of your SLA type of tools or does your software sit there and the customer they're still making that purchase directly through Amazon but the software is executing those details on their behalf. So that's the ladder. We're not like sitting between the customer and the cloud and buying and selling. We're just like providing our software to the customers enabling the customers to use that smart software so they can leverage compute more easily. Right. So what are the key components that take the Spot instance that doesn't have an SLA and makes it kind of SLA worthy for your customers? I'd say that's a great point. A key component is statistical analysis that we're doing behind the scenes is an AI based platform that basically we're always looking at the trends that AWS terminates capacity. So that basically tells us, all right, on Mondays AWS reacts like this and on these hours this is how you can get capacity. So basically our statistical model can tell the customer, hey, on 7 a.m. you should switch from one server to another before AWS takes it away from you. So that's how we bring SLA to a non-SLA compute. Right. Because we know what's probably going to happen. So how does Amazon sell that spot is there some, you buy it by a time duration so you know you at least can run a job without worrying about it suddenly going away in the middle of your job or how is it actually priced and bundled? So there are several ways. The most common way is just get Spot capacity and whenever AWS needs that capacity back they will take it away. And then you are- So what happens if you run in a job? So you are as a customer, you need to take care of that. Okay. You need to make sure- If you get a warning flag or something, hey, we're taking this away and- We get two minutes notification. Two minutes, okay. So sometimes it's more than enough and sometimes you just can't handle with two minutes. Right. That's why you really need to choose which type of app you would probably want to use for Spot. But the good thing is that with our software you don't have to worry about it because like you basically tell the software my app runs and we need X amount of minutes, we need X amount of compute to complete our job and then we make it happen. Right, right. So do most of the customers then use this for specific jobs that they want to run that they know are going to take X amount of compute power and run for an approximate level of time so they can schedule it, whether it's some type of a batch job or an end of quarter run or those types of things or can they actually start to integrate it into their actual operational software that's running pretty much all the time and it's really more just a resource shift based on economics. Yeah, that's a great point because historically if you look at Spot, Spot was exactly for what you've mentioned which is batch jobs, things you need to schedule, you know that it's going to take you X amount of time to complete specific workload. Right. And that's what people did with Spot. And the way we're looking at it is like the next generation of like even new applications like web services, like containers, like any type of an application layer can use Spot just because we leverage the fact that these applications that we're building today are all highly available, highly resilient, fall tolerant by definition. So we know if you know to orchestrate Spot replacement in a very, very accurate way, you'll be able to run workload forever on Spot instances without even noticing a single interruption. Interesting, because you're just kind of shifting, you're reacting to the Spot market dynamically using your software. Correct. Very cool. Now another thing we talked about before we turned the cameras on, is some good visibility based on the software as to what people are doing. And you made a really interesting comment on the rise of Kubernetes. You know, we first heard about Kubernetes, I think at VM, well, actually we got the story from Craig at, it was named called Google Cloud Platforms, like Google Live, or in 2014 in the story of the naming. But you said that you've really seen a significant change in the landscape over the last year or so. Give us a little more color on that. Yeah, that's correct. And the funny thing here is that we didn't see it coming like two years ago, like when we've discussed, we didn't even know what's Kubernetes is. We know that containers are gonna be the big next thing because it's so easy to deploy applications with containers. But then you had like so many different options, right? You had Kubernetes and Amazon had their own stuff and Docker released their own stuff. But then in the past year, we're just seeing something phenomenal that we've never seen before or like never seen in any other area in our company, which is everybody's just consolidating around Kubernetes as an orchestration layer for containers. Right, right. And we hear that all the time, but it's interesting you're actually seeing it in the execution of what people are purchasing. Well, exciting. So another big part of the news, you said you got some new funding, so give us kind of the details there and what are you going to do with some of this capital? Hopefully it won't be two years till we see each other again, what are some of your priorities looking forward to? How are you going to deploy some of this capital? Yeah, so yeah, gladly we were able to secure another funding ground. And it's just because there is like, there is such a big opportunity in front of us to capture. The growth has been phenomenal in the past two years. Deloitte has crowned us as the fastest growing startup in Israel last year, in 2017. We grew like more than 1400% year over year. And just like seeing the opportunity in front of us, like replicating the same thing we did for AWS customers and doing it in other clouds as well, like Google and Azure and seeing all this rocket ship. As you said, cloud infrastructure space, just continuing to grow in such pace year over year. We're just going to deploy all that capital into growth. Right. Well, very exciting and congratulations and thanks for coming and give us the update. Absolutely, thank you. All right. Isam Raim, I'm Jeff, you're watching theCUBE. We're in our Palo Alto studios having to keep conversation. Thanks for watching and we'll see you next time.