Down and Out? Curbing Cloud Downtime Cost

Channel partners, take note. If your customers worry about the cost of cloud downtime, you may be able to help.

Startup Parametrix Insurance just nailed down $17.5 million in funding so it can offer policies to organizations using third-party cloud providers, ecommerce services, payment gateways and CRM systems.

The company is not actually an insurance carrier. Rather, it teams with the incumbents for payouts. Its differentiator lies in its approach. Parametrix created a system that monitors IT services worldwide, spotting service interruptions. It then provides data points galore so customers (we recommend, with your help) can estimate financial risk tied to downtime. Then they create a customized rate of payout per hour they’re not operating.

“The business world’s dependence on cloud solutions is rapidly accelerating,” said Yonatan Hatzor, CEO at Parametrix Insurance. “To help them hedge this external risk, we created a new category in the insurance market by introducing reliable protection from the cloud downtime incidents that inevitably occur.”