Ubicloud

Ubicloud is an open source cloud that can run anywhere.

Our cloud services include elastic compute, block storage, virtual networking, managed Postgres, K8s, AI inference, and powerful IAM. Ubicloud provides these services on bare metal providers, such as Hetzner, Leaseweb, or AWS Bare Metal.

You can self-host our software or use our managed service to reduce your cloud costs by 3-10x.

High-Level Overview

Ubicloud is an open-source cloud platform designed as a cost-effective alternative to AWS and other major public cloud providers. It offers core Infrastructure-as-a-Service (IaaS) capabilities such as elastic compute (virtual machines), virtual networking, block storage, and managed PostgreSQL databases, all running on bare metal infrastructure from providers like Hetzner, Leaseweb, OVH, or AWS Bare Metal instances[1][2][3]. Its mission is to provide an open, free, and portable cloud that reduces vendor lock-in and cloud costs by leveraging bare metal servers, enabling users to run cloud services anywhere with transparency and flexibility[6][9].

For an investment firm, Ubicloud represents a strategic play in the open-source cloud infrastructure space, focusing on disrupting the dominance of hyperscalers by addressing cost, transparency, and control issues. It targets startups, SMBs, enterprises, and developers who prioritize cost savings, customization, and avoiding vendor lock-in[1]. Its impact on the startup ecosystem lies in democratizing cloud infrastructure access and enabling innovation through open-source collaboration.

For a portfolio company, Ubicloud builds a cloud platform product that serves developers and businesses needing scalable, secure, and affordable cloud infrastructure. It solves the problem of high cloud costs and vendor lock-in by providing an open-source platform that can be self-hosted or used as a managed service, with features like attribute-based access control (ABAC) and encrypted storage[1][4]. The company is gaining growth momentum by raising significant seed funding ($16 million) and expanding its feature set, including plans for Kubernetes-based container services[7][5].

Origin Story

Ubicloud was co-founded by Ozgun Erdogan and Umur Cubukcu, who previously created Citrus Data, a company acquired by Microsoft in 2019[3]. The idea emerged from their deep experience in cloud computing and a desire to build a simpler, more cost-effective, and open alternative to the dominant hyperscalers. They recognized the pain points of high costs, vendor lock-in, and lack of transparency in existing cloud offerings and set out to create a platform that runs on bare metal infrastructure with open-source software[3][6].

Founded recently (exact founding year not explicitly stated but seed funding and product development are recent), Ubicloud has evolved from focusing on core compute and PostgreSQL services to planning additional features like block storage and Kubernetes container orchestration[5]. Early traction includes positive user feedback on cost savings and performance, as well as community engagement through its open-source GitHub repository[7][4].

Core Differentiators

• Open Source and Portability: Ubicloud’s platform is fully open source, allowing users to inspect, modify, and run it anywhere, avoiding vendor lock-in common with proprietary clouds[2][6].
• Bare Metal Focus: Runs on bare metal servers from providers like Hetzner, Leaseweb, OVH, and AWS Bare Metal, enabling cost savings up to 10x compared to traditional clouds[3][6].
• Core Cloud Services: Provides elastic compute VMs using Cloud Hypervisor with strong isolation, virtual networking with IPv4/IPv6 and encrypted IPsec tunnels, block storage with encryption at rest, and managed PostgreSQL with automated backups and high availability[1][2][4].
• Attribute-Based Access Control (ABAC): Fine-grained user roles and permissions for secure resource management[1][4].
• Managed Service and Self-Hosting: Offers both a managed cloud service and an open-source version for self-hosting, providing flexibility for different user needs[3][4].
• Technical Sophistication: Uses a control plane/data plane architecture with a state machine framework ("programs") for reliable long-running operations like VM provisioning and database management[2].
• Cost Efficiency: Network egress costs reportedly 30x lower than competing clouds, and PostgreSQL runs three times more cost-efficiently[3].

Role in the Broader Tech Landscape

Ubicloud rides the growing trend of open-source infrastructure and cloud cost optimization. As cloud spending continues to rise, many organizations seek alternatives to hyperscalers that offer transparency, control, and lower costs. The timing is favorable due to increasing demand for multi-cloud and hybrid cloud strategies, as well as skepticism about vendor lock-in and pricing models of major cloud providers[3][6].

By providing an open-source cloud platform that runs on affordable bare metal infrastructure, Ubicloud challenges the traditional cloud model and empowers users to build customized cloud environments. This influences the broader ecosystem by promoting open standards, fostering community-driven innovation, and encouraging competition in cloud infrastructure services[2][3].

Quick Take & Future Outlook

Ubicloud is poised to grow as enterprises and startups alike seek cost-effective, transparent cloud alternatives. Its future roadmap includes expanding its service portfolio with block storage and Kubernetes-based container orchestration, which will enhance its competitiveness against established cloud providers[5]. Trends such as the rise of edge computing, hybrid cloud adoption, and demand for open-source solutions will shape Ubicloud’s journey.

As Ubicloud matures, its influence may extend beyond cost savings to become a key enabler of cloud sovereignty and developer freedom, potentially reshaping how cloud infrastructure is consumed and managed. Its open-source foundation and managed service dual approach position it well to capture diverse market segments and foster a vibrant community around cloud infrastructure innovation.

Ubicloud’s mission to democratize cloud infrastructure by combining open-source software with bare metal economics offers a compelling alternative to hyperscalers, making it a noteworthy player in the evolving cloud landscape.