Tech companies, particularly larger ones, often become "frenemies” and encroach on each other’s turf while still remaining partners. This puts Cloudflare in direct competition Backblaze. Cloudflare announced that it will charge $0.015 $/GB/month, which is still 3x more expensive than Backblaze.
Interestingly, Cloudflare, a developer partner and IPO roadshow promoter, recently launched Cloudflare R2 Storage, a storage service aimed at eliminating egress bandwith fees.
Additionally, companies are increasingly pursuing a multi-cloud strategy for regulatory and compliance reasons, which should be a tailwind for Backblaze. Backblaze is targeting mid-market companies requiring simpler simpler solutions. The competition with B2 against the major cloud companies was largely covered above. Legacy on-premise storage vendors like Dell EMC As mentioned above, all web/mobile applications require behind-the-scenes data storage.ī2, while accounting for less revenue presently, has better operating metrics including a higher NRR (Net Retention Ratio) at 130% and higher ARPU (Average Revenue Per User) of $325.īackblaze breaks down its competition as falling into 3 categories:ĭiversified public cloud companies like AWS, Google Clould Platform and Azure B2 is easily scalable and cheaper than the large cloud providers. B2 was designed for developers and IT people requiring on-demand storage. Backblaze charges a flat fee of $7/month (or $70/year) for unlimited backup of personal computers.ī2 Cloud Storage (also referred to as B2), created only 5 years ago, represents the remaining 1/3 of the business and is the “hypergrowth jewel”. Computer Backup is a simple business model. Putting it all together Backblaze is easy to use, demonstrably cheaper, trusworthy and will not compete with you:Ĭomputer Backup - backup for businesses and personal laptops and desktopsī2 Cloud Storage - on-demand storage for developers to build applications and IT people to back up organization systems and filesĬomputer Backup is the first business line created 15 years ago and represents 2/3 of their business. Companies can securely store their data with Backblaze and run their applications on the cloud provider of their choosing. Backblaze links to a survey conducted by IDG, stating that more 55% of organizations currently use multiple public clouds and 21% saying they use three or more. Another reason is that companies are increasingly needing multiple clouds for regulatory, compliance, insurance and data resiliency reasons. One of the reasons companies chose a multi-cloud approach is to avoid vendor lock-in, or the fear that a company will be unable to use another vendor without substantial switching costs or operational impact. Lastly, more companies are choosing to work with more than one cloud provider. Nodecraft’s decision to partner with Backblaze resulted in savings of 85%! The Bandwith Alliance, founded by Cloudflare, is comprised of a group of companies that are committed to lowering or eliminating egress fees.
Not only are Backblaze’s storage costs 1/4 the cost of Amazon S3, but Backblaze did charge any egress fees since the company is a member of the Bandwith Alliance. This was clearly not sustainable, so Nodecraft ultimately decided to partner with Backblaze. Nodecraft’s egress fees simultaneously were increasing because customers were accessing saved version of their games. Nodecraft’s storage costs were increasing because game swapping created more data files to store for each customer. Customers were able to play and store multiple games on Nodecraft’s hosting servers. It was a tremendous success but ironically hurt the company financially. Nodecraft launched a new product that allowed customers to play multiple games from their hosted servers. Nodecraft built their game distribution on Cloudflare’s cloud network platform and stored game and server files on Amazon S3. Nodecraft is a multiplayer gaming service known for offering fair, fixed prices.
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