Newvem joins competitors, offers free tier

Newvem joins some of its competitors and is now offering a free "health scan" for users of Amazon Web Services, in an effort to lure in more small to medium business customers.

Offering a free tier could help Newvem upsell if it manages to win new customers but it doesn’t set it apart from the competition. Both Cloudability and Cloudyn also offer free usage tiers of their AWS analytics services. Apptio also offers its cloud tracking service for free.

free sign_0.jpgSource: jking89 via Flickr
Newvem is starting to offer a free tier of service.

Newvem, which offers analytics primarily about AWS EC2 usage, said it’s made good progress signing up large enterprise customers, the kind that spend $1 million or more each year on AWS. But it sounds like the company hit a speed bump when trying to push into smaller businesses.

It recently started reaching out to small and medium-size companies and found that for them, the value of the analytics offered by Newvem is not as evident, said Zev Laderman, CEO of Newvem.

So the company decided to start offering a set of free data and then charge for certain analytics information.

That means that AWS users large and small can get free data from Newvem including:

-- Cost and asset health trends over daily, weekly, monthly and month-to-date time frames.

-- Identification of issues that could reduce costs or improve governance and risk.

-- Prioritization of cloud health issues based on severity, cost, security, availability and utilization.

Users will have to pay for additional features like detailed reports with specific recommendations and tracking of utilization with recommendations for ways to cut costs. Other fee-based features include segmentation of usage by business unit and detailed analysis of S3 usage with potential for recommendations to shift storage to lower cost options.

“As SMBs learn to use AWS better and get more out of their servers, then they start to behave more and more like enterprise users where they need more of the detailed premium analytics,” Laderman said.

He doesn’t expect to lose much by offering some services free to enterprises, because most enterprises needed more than the free services and Newvem hopes to gain more enterprise customers via the free tier.

Newvem isn’t planning to follow some of its competitors that are tying their services to broader capabilities. Apptio offers its cloud management capabilities for free in hopes that users will buy its software that’s used for managing all IT investments. Cloudyn has partnered with Scalr so that once it makes recommendations, users can employ Scalr’s automation software to implement changes.

“We don’t want to be in the business of automating that process,” Laderman said. “Different companies have different requirements for how to shut down servers. We want to empower our users to make the best decisions for themselves.”

One nice thing about the growth of all the AWS analytics companies is that they often have interesting data to share publicly. Newvem said that 50 percent of its customers have security exposures, 30 percent aren’t using tools AWS provides that would guard against outages and 15 percent are overprovisioning.

Newvem said it is tracking 125,000 AWS servers and tracked $200 million worth of EC2 spend in 10 months. That sounds like about twice as much as Cloudyn, which recently said that it has 400 customers that spend on average $250,000 annually with AWS.

Read more of Nancy Gohring's "To the Cloud" blog and follow the latest IT news at ITworld. Follow Nancy on Twitter at @ngohring. For the latest IT news, analysis and how-tos, follow ITworld on Twitter and Facebook.

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