Press "Enter" to skip to content

Posts published in “Storage”

Auto Added by WPeMatico

Wasabi just landed $68 million to upend cloud storage

Chances are you see a story about cloud storage, and you yawn and move on, but Wasabi, a startup from the folks who brought you Carbonite backup, might make you pause. That’s because they claim to have found a cheaper, faster way to store data, and apparently investors like what they are seeing, forking over $68 million for a Series B investment. Yes, that’s a hefty amount for an early round, but with founders who have multiple successful exits, investors might have seen a lower risk than you might think. The company didn’t go with your usual Sand Hill Road suspects here, instead opting for an unconventional set of industry veterans and family offices along with Forestay Capital, Swiss entrepreneur, Ernesto Bertarelli’s technology fund. Much like Packet, a startup that scored $25 million the other day, they are hoping to take on cloud giants by finding a seam in the market they can exploit. While Packet was looking at customized compute, Wasabi is concentrating squarely on storage, an area they understand well from their Carbonite days. CEO David Friend reports they are offering a terabyte of storage for just $5 a month, and says they are growing 30-40 percent month over month, since they launched in May 2017. In fact, he says they already have 3500 customers. They took their time building their own custom storage solution, which he claims is faster and more efficient than any out there, allowing them to undercut Amazon S3 storage prices. Amazon is charging .023 cents per gigabyte for up to 50 terabytes. That works out to $23 a terabyte, substantially more than Wasabi’s asking price. It begs the question though, how they can afford to keep scaling such a solution. For starters, they use co-location facilities like Digital Realty and Equinix for their storage solution instead of building out their own data centers. Friend says as they scale, they won’t be using their investment capital to add more capacity. Instead, they will be borrowing from banks in an apartment building kind of model, where you build the building, rent out the apartments and…

Cookies help us deliver our services. By using our services, you agree to our use of cookies. More Info | Close