Start-up’s new program will drive down costs while making cloud migration easier
Cloud storage start-up Wasabi this month introduced a pricing model under which customers and partners pay a one-time upfront fee for storage capacity that company officials hope will accelerate migration to the cloud.
The Lowdown: The Boston-based company’s Reserved Capacity Storage (RCS) is designed to make it easier for enterprises to compare the price of cloud-based storage with that of on-premises offerings and enables the channel to sell cloud storage capacity in the same way – as a SKU – they do storage appliances for data centers.
The Details: Through the new program, customers can buy a set amount of cloud storage over one, three, or five years for a fixed price at significant price savings over on-premises systems. Wasabi officials said a 100-terabyte appliance from a leading manufacturer has a list price of about $130,000 that, with maintenance included, would cost more than $240,000 over five years. A 100TB RCS package with premium technical support over five years costs less than $40,000, they said.
There are no egress fees or costs for API requests, so the price customers sign up for is what they will pay, regardless of how many times they access their data.
The company noted that businesses in such areas as education and government, as well as some large enterprises and nonprofits, prefer one-time payments to monthly billing and that partners like VARs and systems integrators will be able to expand their margins by buying RCS and reselling it to customers.
The fixed-price model also will enable partners to help customers as they transition to the cloud.
The Impact: Enterprises are continuing to move more of their workloads to the cloud and adopting multicloud and hybrid cloud strategies, and such areas as storage, security, and management are key concerns, as are costs. Flexera in its RightScale cloud report last year said that 84% of enterprises have multicloud plans.
The Buzz: “As customers migrate their data to the cloud, we want to be able to offer them a pricing model that compares favorably to how they purchase on-premises storage hardware. Companies are used to buying hardware and issuing one-time purchase orders. We want to make buying cloud storage just like buying hardware. RCS helps customers with budgeting, purchasing, and planning their storage,” Wasabi CEO David Friend said. “With most of the world’s data still stored in on-premises hardware, we want to make it easy for people to migrate their data to the cloud and start saving enormous amounts of money in the process.”
“As a multidiscipline firm working on projects spanning multiple industries, we are highly protective of our data and will only utilize partners we can trust,” said Cory Pierce, IT manager and associate principal of architectural and engineering design firm The Clark Enersen Partners. “Wasabi was easy to use and interfaced well with our existing storage solutions. With Wasabi’s RCS pricing model, we were able to realize substantial cost savings and modernize an aging archive workflow, which gave us more immediate access to our data. Storing our data with Wasabi with the RCS pricing model was a logical choice.”