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Wasabi raised $68 million to set up best cloud storage

Wasabi raised $68 million to set up best cloud storage
Wasabi raised $68 million to set up best cloud storage

Mostly, we are not that much excited about the cloud storage. Whenever we get a news about cloud storage, we just look and move on. However, Wasabi, a startup launched by the well-known firm Carbonite backup, can leave you surprised. The reason because it claims to have discovered a cheaper, faster way to store data and various investors are merging over $68 million for a series B investment.

Absolutely, it is huge for an early round, but with founders who have got multiple successful exits, investors have seen a lower risk as compared to what you think. The firm will be getting investment from Forestay Capital, Swiss entrepreneur, Ernesto Bertarelli’s technology fund.

It is almost similar to Packet, a startup which raised $25 million the other day, they are hoping to lead the cloud storage race in the market. However, Packet is providing a customized count, Wasabi is solely focusing on cloud storage.

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David Friend, CEO of Wasabi said that they are providing a terabyte of cloud storage only for $5 a month. He added that they are growing at 30 to 40% per month, from the beginning of its launch from May 2017. It is acquired about 3500 customers.

The firm researched well and build its custom storage solution, which he claims to be faster than any other cloud storage available in the market. Amazon is currently charging 0.23 cents per gigabyte which is equivalent to $23 a terabyte. Thus, Amazon’s price is absolutely higher than Wasabi’s price.

You may have a question, how wasabi can provide service at such a low rate? For trainees, they utilize the co-location facilities such as Digital Realty and Equinix for their storage solution rather than developing their own data centers. Friend states that they scale, but they don’t utilize the investment capital to add more capacity. Rather, they will be borrowing from banks in an apartment building kind of model. Here, you develop a building, rent out the flats and break even after a certain amount of time.

They will approach sectors which hold huge data such as media, entertainment, and genetics, where they hope that companies looking for the best effective price will skip the major three players which include Amazon, Google, and Microsoft. All these firms want to develop a more cost-effective storage solution.

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There are a large number of cloud storage companies which are failed to provide appropriate service. However, Wasabi has a great team and a lot of money with them. Time will tell whether wasabi overtakes the world’s biggest cloud companies by competing with price and performance.