Backblaze is a cloud storage company that offers infrastructure as a service and end-to-end SaaS backup solutions for diverse customers, including enterprises and individual consumers. I recently spoke with Gleb Budman, co-founder and CEO of Backblaze, about the company’s strategy.
Watch The Full Video Here:
Since starting out 17 years ago, Backblaze has supported over half a million paying customers and managed over three exabytes of data. Initially focused on individual consumers, the company is shifting towards attracting enterprise clients, recently securing significant seven-figure deals. Some of us may remember the company as an SMB segment-focused business…but it is changing!
The business model is split into two key segments: one focuses on end-to-end backup solutions for laptops and desktops to protect against data loss from ransomware and hardware failures, while the other is a rapidly growing B2 Cloud Storage service that competes with major providers like Amazon S3, Azure Blob, and Google Cloud. This segment supports cybersecurity, application storage, AI data management, and media workflows. Many eco-system partnerships are also in the mix.
Backblaze’s “claim to fame” in supporting the burgeoning AI market is that it allows organizations to retain ownership of their data, facilitating access across various GPU providers.
Economics are a key differentiator: a recent case (not validated by the Cube Research) showed that a transition from traditional hyperscalers to Backblaze resulted in about 80% cost savings and free data egress, enhancing innovation capabilities.
Backblaze’s comprehensive cloud storage solution also leverages S3 protocol support and works with various eco-system vendors, offering significant cost advantages and instant data recovery without charges. Again, there is no egress fee. Features like the shard stash improve backup speed, while Object Lock protects against ransomware.
Users can recover all their data up to three times monthly at no cost, enabling efficient testing and recovery. Backblaze maintains affordability through its proprietary cloud storage infrastructure, established 17 years ago, which focuses on efficiency and performance.
The company also provides “vertical” support throughout the media workflow, including storage solutions, asset management, and post-production.
Following its IPO in 2021, Backblaze is transitioning from a self-serve model to integrating sales and channel strategies, including the introduction of B2 Reserve for simplified cloud storage sales in the channel.
Wrapping up
I would like to suggest Gleb’s recommendations as a wrap-up and a few thoughts:
1. Explore Best of Breed Solutions: Consider alternative offerings beyond traditional hyperscalers for better pricing and features.
2. Deliver Data Flexibility: Ensure data accessibility and compatibility with various partners to leverage AI effectively.
3. Improve Cyber Resilience: Prioritize safety and quick access to data to protect against ongoing threats.
These are great recommendations from a company that we have not really “seen” in the market compared to others despite what sounds like outstanding economics, performance, and technological differentiation. It feels like we are just starting to shine some light on a diamond in the rough that needs a little more go-to-market polishing.
I hate to use the term “best kept secret,” but it feels like Backblaze is coming out of its shell with a clear interest in gaining visibility in the enterprise space, taking on hyperscalers, and proposing an innovative way to get to AI investment ROI.
I am very curious to see what happens in the next few quarters with Backblaze, and what competitive reactions they might trigger as they continue to execute on a more aggressive go-to-market strategy.
