Daring businesses to switch from Amazon to a company they've never heard of for cloud storage is a bold challenge. But Wasabi Technologies' founders were so encouraged by its product launch that they raised another $10.8 million to fund a second data center.
By submitting your personal information, you agree that TechTarget and its partners may contact you regarding relevant content, products and special offers.
Wasabi CEO David Friend said he expected the free trial of 1 TB for 30 days to attract a few dozen prospects when it became available on May 3. When more than 500 signed up, the Boston-based startup had to waitlist new subscribers until the week of May 17 to keep up with the server capacity demand.
Friend said about 80 users have converted to paying customers, and Wasabi boosted the available storage capacity at its leased data center space in Ashburn, Va., from about 7 PB to more than 20 PB to stay 90 days ahead of demand.
Those customers are likely lured mostly by Wasabi's claims that its cloud storage is significantly cheaper and faster than Amazon's Simple Storage Service (S3). They may also find it encouraging that Wasabi founders Friend and CTO Jeff Flowers also started Carbonite, an early successful cloud storage player for consumers and small and medium-sized businesses.
The founders also likely learned a few things from Flowers' post-Carbonite efforts to build on-premises cold data storage for financial and security firms and service providers. Storiant, initially known as SageCloud, raised $14.8 million in equity and debt between August 2012 and May 2015. But Storiant shut down operations in November 2015 and sold off its intellectual property for a mere $90,000.
"They were selling hardware systems and ended up competing with EMC, Dell and HP, which I thought was a mistake," said Friend, who was CEO and later executive chairman at Carbonite, as well as a director on Storiant's board.
In 2016, Friend, Flowers and Storiant's founding engineers shifted their focus back to public cloud storage at BlueArchive, now called Wasabi Technologies. The startup raised $8.2 million over two rounds in 2016 to get started.
Has Wasabi built a better mousetrap when people don't realize they have a mouse problem? Or, is this a real issue? Stu Minimansenior analyst, Wikibon
Wasabi added $10.8 million through a convertible note that will become equity when the company decides to raise a Series B round of funding. That will help finance the West Coast expansion to a colocation facility in San Jose, Calif., or Seattle, according to Friend. That would allow Wasabi to add automatic replication across multiple geographies for compliance, and to mitigate the risk of having all customer data in a single data center. Wasabi is also investigating expansion into Europe, a prospect that Friend said he hadn't planned to pursue until next year.
"I'm a cautious, conservative kind of guy, and I don't like just spending money without knowing what I'm going to get for it. But at this point in time, the market is almost limitless for this," Friend said. "Every day, new opportunities show up at the company for amounts of storage that are more than we had in our whole second-year projection. If any of these big deals start to come in our direction, it's going to be pretty impressive."
Friend said the speed at which Wasabi's software can read and write data is "what really blows people away." It offers performance that he said is generally achievable only at higher cost with on-premises data center hardware. He said the Wasabi software takes control of disk write heads and packs data onto storage drives more efficiently and at higher speed than Linux or Windows operating systems can.
"We get our speed by parallelizing. The speed comes from breaking the data up and reading it and writing it simultaneously to many drives at the same time," Friend said. He added that the data is distributed with sufficient redundancy to enable 11 nines of data durability, as Amazon does.
Friend said Wasabi keeps costs low by buying directly from hard disk drive (HDD) manufacturers at about the same price as Amazon does in the low-margin HDD business. He said Wasabi's technology also enables longer disk life.
Wasabi charges a flat 0.39 cents per GB per month for storage and 4 cents per GB for egress. Competing public clouds vary prices based on the amount of data stored or transferred, the type of storage service -- such as cold or nearline -- and the requests made, such as puts and gets.
"Our vision is that cloud storage is going to become a commodity that's out there for everybody to use. You don't need three plugs in the wall for good electricity, so-so electricity and crappy but cheap electricity. You don't need all these different kinds of storage as well," Friend said.
Friend said he expects most potential customers to compare Wasabi to Amazon S3. But one trial participant, Phoenix-based WestStar Multimedia Entertainment Inc., pitted Wasabi against Amazon's colder, cheaper Glacier, Backblaze and Google Coldline in addition to Amazon S3, Microsoft Azure Backup and Rackspace.
WestStar vice president of information technology Chris Wojno said his company had a pressing need to back up more than 26 TB of video with an estimated data growth rate of 2.7 TB per month. WestStar produces The Kim Komando Show, a syndicated digital lifestyle radio program, and operates a multimedia website.
Wojno calculated costs based on storing 39 TB of data and found Wasabi had the lowest per-month price per GB. If he chose Wasabi, his per-month cost would be $3,747.90 less than Rackspace, $1,590.80 less than Azure Backup, and $744.90 less than Amazon S3. The price differential was far less over Google Coldline ($120.90), Backblaze ($42.90) and Glacier ($3.90), according to his spreadsheet analysis.
Wojno also weighed the data recovery cost for 39 TB of backed-up video in the event of a disaster. Backblaze was least expensive at $780, compared to $1,560 for Wasabi and $3,900 for Glacier. But Wojno figured Blackblaze's higher per-month storage fee than Wasabi would negate the savings.
Based on Wojno's calculations, WestStar selected Wasabi Technologies for cloud storage. Wojno admitted he would have been suspicious of the new company had he not been familiar with Friend through his work at Carbonite, a former sponsor of the radio show. Komando, an owner of WestStar, last month invested in Wasabi after her company became a paying customer.
Wojno said WestStar spent about two weeks backing up 26.5 TB of video over a 200 Mbps connection with backup software from Wasabi partner CloudBerry Lab. He noted that WestStar received a complimentary CloudBerry license for his participation in a webinar with the vendors.
Friend said migrating data through transfer to a storage appliance, such as Amazon Web Services (AWS) Snowball, and transport by truck to the cloud storage provider is "an idea whose time has come and gone."
"It's much cheaper to go and put in a 10 Gigabit [Ethernet] pipe for a month, move your data and then shut it off, assuming you're in a metropolitan area where such things are available," Friend said.
Stu Miniman, a senior analyst at Wikibon, said Wasabi faces a stiff challenge against Amazon, the clear No. 1 cloud storage player. He said Amazon could lower costs as it has done in the past, or improve performance to respond to any perceived threat. Plus, he hasn't heard many public cloud users complaining that storage is a problem.
"Has Wasabi built a better mousetrap when people don't realize they have a mouse problem? Or, is this a real issue?" Miniman said.
Miniman said users might look to the free 30-day trial for new applications. He said the question is how long they'll stick with the service over the long haul, especially if the initial application runs for only a limited time.
Friend said Wasabi Technologies is going after AWS customers who want to save money on their long-term data storage or keep a second copy of their data with a different cloud provider. Wasabi provides a free tool that customers can install in Amazon Elastic Compute Cloud (EC2) to copy their S3-stored data to Wasabi automatically.
Friend said, thanks to Wasabi's S3 compatibility, organizations using EC2 to host applications could leave the applications there and move data to Wasabi's data center via Amazon's Direct Connect, rather than store it in Amazon S3. He said Wasabi does not compete against Amazon's Elastic Block Storage, which he said is designed for fast-moving data that doesn't stay in memory long.
Friend said Wasabi uses immutable buckets to protect data against accidental deletion, sabotage, viruses, malware, ransomware or other threats. Customers can specify the length of time they want a data bucket to be immutable.
- Get 2TB of cloud storage and organization for less than $50 - Android Central - February 23rd, 2020
- Zoho reinvents its cloud storage with WorkDrive - GeekWire - February 23rd, 2020
- Cloud-enabled threats are on the rise, sensitive data is moving between cloud apps - Help Net Security - February 23rd, 2020
- A lifetime of learning from Whizlabs is just $60 right now - Android Central - February 23rd, 2020
- OneDrive for Android gains a dedicated dark theme in latest beta update - 9to5Google - February 23rd, 2020
- Netskope Releases February 2020 Netskope Cloud and Threat Report - Solutions Review - February 23rd, 2020
- This Wi-Fi Smart Doorbell Has an 180 Vertical Field of View - Gadget Flow - February 23rd, 2020
- TechTarget Storage Magazine and SearchStorage.com Select Hammerspace as a Storage Product of the Year for 2019 - GlobeNewswire - February 18th, 2020
- Top enterprise cloud storage systems win 2019 Products of the Year - TechTarget - February 18th, 2020
- #1501: How to deal with low cloud storage space, StopTheMadness fixes unfriendly Web sites, clean tech and more from CES 2020 - TidBITS - February 18th, 2020
- Talon Announces Strong Growth Driven By Industry Trend To Cloud Consolidation; Reports Record Sales in 2019 - Yahoo Finance - February 18th, 2020
- List: The best ways to protect your pictures - WKYC.com - February 18th, 2020
- 8 Best Ways to Fix Google Drive Storage Full But No Files in It Issue - Guiding Tech - February 18th, 2020
- Public Cloud Storage Service Market Trends, Size, Share, Types, Applications, In-depth Industry Analysis and Competitive landscape Forecast 2025 -... - February 18th, 2020
- Cloud Storage Market Analysis With Key Players, Applications, Trends and Forecast To 2026 - Instant Tech News - February 18th, 2020
- Forbes Road To The Cloud - Architecture, Security And The Refactor - Forbes - February 18th, 2020
- Psst. SANshine, fancy a bit of shared block storage on Azure? - The Register - February 18th, 2020
- Edge Computing Brings the Cloud to the Data - FedTech Magazine - February 18th, 2020
- Consumer Cloud Storage Services Market Research: Aim To Achieve The Pinnacle In Qualitative Industry Research And Business Intelligence -... - February 18th, 2020
- Siacoin (SC) Siaskynet will be the only Big news on February 18, 2020, GoodBye YouTube - The Cryptocurrency Analytics - February 18th, 2020
- Microsoft ready to take on Google with this new app for Android users - Times of India - February 18th, 2020
- Cloud key to top 2019 data backup and disaster recovery products - TechTarget - February 18th, 2020
- Look for These 4 Chances to Save During IT Improvements - FedTech Magazine - February 18th, 2020
- More than software: SaaS is a relationship - NewscastStudio - February 17th, 2020
- Connect, share and store images and movies seamlessly with image.canon - Africanews English - February 17th, 2020
- Looking to Keep Data Analytics in Healthcare Affordable? The Answer is the Cloud - - HIT Consultant - February 17th, 2020
- The best free and open-source alternatives to Google Keep on Android - Android Police - February 17th, 2020
- Here's how Shree Cement uses IT to decrease TAT by 60% - ETCIO.com - February 17th, 2020
- Premarket stocks: Germany recession fears are back amid the coronavirus outbreak - CNN - February 17th, 2020
- The Ultimate Guide to Best and Affordable 5 Cloud Services 2020 - PhonesWiki - February 16th, 2020
- Reason 962 to Avoid Cloud Photo and Video Storage: Strangers May Be Able to See Your Stuff - Fstoppers - February 16th, 2020
- Cloud Is On The List - BroadcastProME.com - February 16th, 2020
- Xiaomi is offering a REALLY LONG Mi Cloud subscription plan that spans 60-YEARS - gizmochina - February 16th, 2020
- Google Drive: Lost your Android phone or WhatsApp backup? Here's where to find them - Express - February 16th, 2020
- BackBlaze reports unexpectedly high failure rate for one of Seagate's 12TB drives - Blocks and Files - February 16th, 2020
- Data Deduplication Market Analysis, Growth by Top Companies, Trends by Types and Application, Forecast to2018 2026 - TechNews.mobi - February 16th, 2020
- Preparing IT teams against growing online security threats The Manila Times - The Manila Times - February 16th, 2020
- Fungible aims to slay the CPU bogeyman with composable microprocessor - Blocks and Files - February 16th, 2020
- HiveIO Adds Data Protection, BI, Cloud Storage to Its Intelligent Virtualization Solution - Integration Developers - February 12th, 2020
- Cloud Storage Market Growth by Top Companies, Trends by Types and Application, Forecast to 2026 - News Parents - February 12th, 2020
- Catch Of The Week: Ransomware On The Rise - Los Alamos Daily Post - February 12th, 2020
- Office 365: 9 Baked-In Productivity Tools Built That Workers Are Using - CMSWire - February 12th, 2020
- Pester power! One big customer prompts Dell EMC PowerProtect systems to work with Actifio - Blocks and Files - February 12th, 2020
- Eight ways to stay safe online, Tech News & Top Stories - The Straits Times - February 12th, 2020
- Data protection must be boardroom priority - ITWeb - February 12th, 2020
- Facilis to debut version 8 of their shared storage system and version 3.5 of FastTracker MAM - Screen Africa - February 12th, 2020
- This cloud service will streamline your workflow and simplify your life - Mashable - February 10th, 2020
- We Need to Talk About Cloud Neutrality - WIRED - February 10th, 2020
- Why fast object storage is poised for the mainstream - Blocks and Files - February 10th, 2020
- Choosing the right disaster recovery for your business - ComputerWeekly.com - February 10th, 2020
- Understanding my new-found appreciation of Google Maps - IT PRO - February 10th, 2020
- Synology DS218play 2 Bay NAS Review Is it worth the extra 40+ over the TerraMaster F2-210? - Mighty Gadget - February 10th, 2020
- 7 Great ETFs to Buy for the Rise of 5G - Investorplace.com - February 10th, 2020
- Warren Mead of NS1 Recognized as 2020 CRN Channel Chief - Business Wire - February 10th, 2020
- How to Simplify Resource Management in Higher Education with Azure Tags - EdTech Magazine: Focus on Higher Education - February 1st, 2020
- Top 3 Ways to Fix OneDrive Connectivity Error Code 0x8004de40 in Windows 10 - Guiding Tech - February 1st, 2020
- Cloud Storage Market Size Overview by Rising Demands, Trends and Huge Business Opportunities 2020 to 2028 - VOICE of Wisconsin Rapids - February 1st, 2020
- 5 tips to clean up your Chromebook and keep it running fast - Chrome Unboxed - February 1st, 2020
- Getting the Most Out of Cloud Data Lakes - ITPro Today - January 31st, 2020
- Five signs that your business is ready to start migrating storage to the cloud - IOL - January 31st, 2020
- Cloud Storage MARKET BOOMING BY SIZE, REVENUE, TREND AND TOP GROWING COMPANIES 2026 - Healthcare News - January 31st, 2020
- Kasten klimbs Kubernetes kontainer protection mountain with K10 - Blocks and Files - January 31st, 2020
- Google is taking another stab at a messaging service, and this one could work - Chrome Unboxed - January 31st, 2020
- Ten of the best home tech gadgets for 2020:from 'rollable TVs' to ingenious pop-up steam closets and hi-tech home brew kits - Homes and Property - January 31st, 2020
- Cloud Storage Software Market 2020 Services, Demand, Size, Growth, Trends, Business Opportunities, Industry Analysis, Top Players and Forecast to 2025... - January 26th, 2020
- HiveIO Introduces Hive Fabric 8.0 with Added Business Intelligence Capabilities and New Cloud Storage Offerings - Citybizlist Real Estate - January 26th, 2020
- Epic tells customers it will stop Google Cloud integrations, says report - Healthcare IT News - January 26th, 2020
- The three keys to a successful, data-driven 2020 - Gigabit Magazine - Technology News, Magazine and Website - January 26th, 2020
- Disaster recovery failover choices: Synchronous mirrors, P2V and the cloud - ComputerWeekly.com - January 26th, 2020
- Miss the look of Windows 7? Change these settings - Komando - January 26th, 2020
- Alibaba Cloud Named First Public Cloud Vendor in the World to Obtain Trusted Partner Network (TPN) Certification - Business Wire - January 26th, 2020
- The best free and open-source alternatives to Google Drive on Android - Android Police - January 26th, 2020
- In public cloud, what worked at 1PB wont work at 100PB - VentureBeat - January 26th, 2020
- Formulus Black's Forsa Software Named Finalist for TechTarget's 2019 Storage Product of the Year - Citybizlist Real Estate - January 26th, 2020
- 11 Best Ways to Fix Dropbox Not Connecting or Syncing on Windows 10 Error - Guiding Tech - January 26th, 2020
- What is AWS S3 and 5Ws for using it? - WhaTech - January 26th, 2020
- The Future of Edge Computing: Beyond IoT - Datamation - January 26th, 2020
- The 28 Best Backup and Disaster Recovery Companies for 2020 - Solutions Review - January 26th, 2020
- Signiant Sees Another Record Year in 2019 - Broadcasting & Cable - January 26th, 2020
- Major new collaborative tools feature in Premiere Pro update - RedShark News - January 26th, 2020