Wasabi: The Cloud Storage Supplier Challenging Amazon’s Dominance

Wasabi’s focus on affordable disk drive-based S3 object storage has propelled its rapid growth in the cloud storage market.

Cloud storage supplier Wasabi has emerged as a formidable player in the industry, offering a cost-effective alternative to Amazon’s S3 storage with no egress fees. Despite not being a technology trailblazer, Wasabi’s success is evident in its impressive growth rate, which is twice that of the overall cloud storage market. With over 60,000 customers and a presence in 13 regions, Wasabi’s approach to cloud storage is gaining traction. In this article, we explore Wasabi’s unique business model and its potential to disrupt the market dominated by giants like Amazon.

Replicating the Cloud Datacenter Pattern

Wasabi’s Vice President for Cloud Strategy, David Boland, reveals that the company follows a consistent pattern in each of its 13 regions. By installing servers, disk-based storage chassis, and software in colocation data centers, often in partnership with Equinix, Wasabi ensures a reliable and scalable infrastructure. Unlike its competitors, Wasabi does not offer additional tiers of storage, such as tape archives or faster-access SSD tiers. Instead, it focuses solely on providing disk drive-based S3 object storage.

Enabling Seamless File Access with Wasabi Cloud NAS

While Wasabi’s primary offering is object storage, it also provides a file access service called Wasabi Cloud NAS. This service acts as a NAS gateway, allowing on-premises systems to access files stored in Wasabi’s S3 cloud repository. By bridging the gap between traditional file systems and cloud storage, Wasabi enables seamless integration for its customers.

Partnering with MSPs and Data Protection Suppliers

Wasabi understands the importance of partnerships in its growth strategy. The company offers multi-tenancy and accounting software to Managed Service Providers (MSPs), allowing them to sell white-label or Wasabi-branded cloud storage to their customers. Additionally, Wasabi has qualified its software as a backup target for data protection suppliers like Veeam. By collaborating with industry leaders, Wasabi expands its reach and provides value-added services to its customers.

Challenging Competitors and Industry Giants

Wasabi’s EMEA VP, Jonathan Howes, emphasizes that the company operates in the tier 2 cloud storage provider space, with AWS, Microsoft, and GCP in tier 1. While competitors like Backblaze and OVH Cloud fall into tier 3, Wasabi distinguishes itself through its competitive pricing and wider geographic coverage. Wasabi charges $6.99 per TB per month for pay-as-you-go storage, undercutting Backblaze’s $6.00 per TB per month. Moreover, Wasabi offers reserved capacity storage with discounted pricing for 1, 3, and 5-year terms, appealing to customers with long-term storage needs.

Egress Charges and the Future of Cloud Storage

One of the key advantages Wasabi offers its customers is the absence of egress charges. Jonathan Howes acknowledges that egress charges imposed by major cloud providers like AWS, Azure, and GCP are often seen as objectionable. While Wasabi operates under the price umbrella of these industry giants, Howes believes they are unlikely to lower their egress prices due to their profitability. However, he remains confident that Wasabi’s focus on S3 storage and its commitment to customer satisfaction will continue to drive growth in the foreseeable future.


Wasabi’s disruptive approach to cloud storage has positioned it as a formidable challenger to established players like Amazon. By focusing on affordable disk drive-based S3 object storage and eliminating egress fees, Wasabi has attracted a growing customer base and achieved impressive growth rates. Its partnerships with MSPs and data protection suppliers further enhance its value proposition. As the demand for cloud storage continues to rise, Wasabi’s stick-to-your-core-focus strategy and commitment to customer-centric solutions could pave the way for its continued success in the market.






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