Due to COVID-19, outsource technologies like cloud services have seen a boom in sales. According to IDC, in 2019, cloud services were valued at $233.4 billion and are rising with a figure of 29%. Giants like Google, Amazon and Microsoft have adopted Cloud and this is an important source of growth for them. Many tech startups are offering cloud storage options at an amazing rate and these are growing at a much faster speed then the above mentioned giants.
Similarly, Boston-based company Wasabi Technologies is offering a cloud storage solution that matches AWS’s S3 option but at 20% of the price. In the recent quarter the company grew at an average rate of 31% and between Jan 2019 and Jan 2020, it had a revenue of 5.5-fold and is expected to triple at the end of 2020.
Wasabi CEO David Friend said, “Before Covid-19, customers did not feel a sense of urgency about moving to Wasabi. Because so many employees are now working from home, those companies are experiencing a big increase in IT spending and they are more interested in achieving short-term cost savings. Why would a customer pay $20 per terabyte from AWS when they can pay us $6 per terabyte? In addition, companies are setting up virtual private networks to secure employee access to corporate data centers from their homes. This is making it more difficult for employees to access data remotely which makes companies more interested in storage in the cloud”.
Wasabi was founded in 2017 by David Friend and Jeff Flowers who started with Carbonite. Last year, they sold the company for $1.4 billion. Wasabi’s main focus is on producing low-cost storage solutions while maintaining the standard of security and privacy. The company raised $30 million in May and raised $108 million in total. With this growth rate and popularity, a question arises “Will Wasabi go public?“