IBM has announced the acquisition of Kubecost. It is a leading FinOps startup and specializes in Kubernetes cost optimization. The move is part of the ongoing effort of IBM to strengthen its FinOps capabilities and support companies like Allianz, Audi, Rakuten and GitLab in managing their Kubernetes clusters more efficiently and cost-effectively.

Kubecost was founded in 2019 and since then has quickly established itself as a widely adopted solution within the cloud-native ecosystem. Kubecost has helped companies in reducing operational expenses and enhancing infrastructure efficiency by focusing on monitoring as well as optimizing Kubernetes costs. Its co-founder and CEO Webb Brown said that they started with Kubernetes cost monitoring and have proudly become the most widely adopted solution in the cloud native ecosystem. They are now poised to accelerate their mission by delivering broader and end-to-end cost management solutions to teams everywhere.

Similarly, IBM acquired FinOps startup Apptio in 2023 for $4.3 billion. Prior to this it acquired Turbonomic and Instana. Both the companies strengthened its cloud app management and performance capabilities.

Kubecost brings with it open-source project OpenCost that was launched in 2022 and is part of the Cloud Native Computing Foundation’s sandbox projects. OpenCost serves as the foundation for the commercial offerings of Kubecost.

IBM plans to integrate Kubecost into its existing FinOps Suite and this includes Cloudability of Apptio product and Turbonomic. Industry experts speculate that Kubecost could also be further integrated into IBM’s OpenShift enterprise platform and expand its capabilities in Kubernetes as well as cloud cost optimization.

The financial details of the deal were not disclosed. Kubecost raised $25 million in a Series A funding round led by Coatue Management in 2022. First Round Capital previously led the company’s $5.5 million seed round in 2021.