Virtana today said it raised $73 million in an unspecified funding round to grow its hybrid cloud operations management business.

The company, officially Virtual Instruments Inc., sells tools based on machine learning that help enterprises monitor, manage and optimize hybrid cloud environments, which are emerging categories called AIOps and observability.

Gartner Inc. has estimated that the AIOps market is currently worth $1.5 billion with a compound annual growth rate of 15% through 2025. Citi analyst Tyler Radke has estimated that the observability market alone could reach $55 billion by 2025.

Virtana’s flagship VirtualWisdom platform provides visibility into the performance and health of underlying infrastructure across multiple clouds, enabling customers to manage capacity and costs more efficiently while automating workload management. Demand for such capabilities is rising as companies become more sophisticated about their cloud options and seek to deploy workloads on the most appropriate infrastructure. A recent survey by Flexera Software LLC found that 92% of enterprises have a multicloud strategy and 82% have a hybrid cloud strategy.

The use of multiple cloud platforms increases complexity significantly, which drives up costs and the risk of waste. Virtana says its software-as-a-service supports a “know before you go” approach by providing intelligent observability into which workloads to migrate. It also ensures that unexpected costs and performance degradation are avoided once workloads are operating in the cloud by flagging inefficiencies.

The company claims more than 260 customers, including Boeing Co., Geico Corp., Dell Technologies Inc. and Nasdaq Inc. It plans to invest the new funds in product development, sales and marketing.

The financing was provided by Atalaya Capital Management LP, Elm Park Capital Management LLC, Highbar Management LLC and Benhamou Global Ventures LLC.

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