Episode 16: The economics of cloud storage, with Backblaze CEO Gleb Budman
Apr 20, 2017
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Backblaze CEO Gleb Budman discusses the economics of cloud storage and their recent 60% reduction in download pricing. They explore the challenges and considerations in cloud storage, the evolution of Backblaze and the launch of their cloud storage API service, Backblaze B2. The chapter also delves into the size and scale of the company's data storage and compares it to industry leaders like Amazon, Google, and Microsoft.
Backblaze's openness and transparency through their blog and open sourcing has attracted talent, generated business, and built a supportive community.
Backblaze continuously improves their storage pod designs for factors like maintainability, cost savings, and performance enhancements.
Backblaze's analysis of hard drive failures helps them choose the most reliable and cost-effective drives for their storage systems.
Deep dives
Impact of Openness and Blogging
Backblaze has found that their openness and transparency, particularly through their blog and open sourcing their storage pod designs, has had several positive impacts. It has allowed them to attract and hire talent who appreciate their open approach. It has also generated business as customers have been drawn to Backblaze after reading their blog and learning about their storage solutions. Additionally, the blog has created a supportive community where readers can ask questions and receive answers from other knowledgeable individuals.
Evolution of Storage Pod Designs
Backblaze continues to make improvements to their storage pod designs over time. They have focused on factors like maintainability, cost savings, and performance enhancements. Examples of these improvements include moving from screw-on lids to tool-less design, introducing motherboard management for remote reboots, and rebalancing components for their vault architecture. Backblaze has also mentioned that they periodically review the market for alternative storage solutions, such as SSDs and Blu-ray, but currently, spinning hard drives still offer the best combination of density and cost.
Hard Drive Analysis and Relationship with Vendors
Backblaze's practice of analyzing hard drive failures and performance has helped them make informed decisions about which drives to purchase and incorporate into their storage systems. This analysis has allowed them to choose the most reliable and cost-effective drives for their use case. While Backblaze's blog has garnered attention and admiration among readers, there is no explicit mention of how their relationship with hard drive vendors has been affected by their thorough analyses.
Backblaze: Cloud Storage Company's Evolution and B2 Product
Backblaze, a cloud storage company, has evolved from focusing solely on cloud backup to offering a new product called B2. B2 is a cloud storage API service comparable to Amazon S3. Backblaze recently announced a 60% price cut for downloading data through B2, making it even more cost-effective. The decision to launch B2 came after customers requested additional storage options beyond cloud backup. Backblaze has integrated B2 into various products, such as Synology NAS devices and Cloudberry software, empowering users to sync, back up, or store data at a fraction of the cost compared to other cloud storage providers. The company's success in leveraging consumer drives, rather than enterprise drives, has contributed to the competitive prices and high reliability of their storage solutions.
Future of Cloud Storage and Backblaze's Path
Backblaze envisions continued growth in the cloud storage market. As more use cases migrate to the cloud, there will be an increasing need for specialized storage solutions tailored to specific requirements. Cloud storage prices are expected to decrease further, leading to more data being stored in the cloud. Backblaze emphasizes the potential for data-centric innovations in areas such as AI and machine learning, which rely on large, affordable data sets. As backblaze moves forward, it aims to maintain its focus on driving down storage costs, improving ease of use, and embracing new opportunities for innovation in the ever-expanding cloud storage landscape. Despite the lure of raising significant funding, backblaze takes pride in its bootstrapping approach, allowing the company to make independent decisions and maintain a positive work environment fueled by passion for their product.
In this episode of the ARCHITECHT Show, Derrick Harris speaks with Backblaze founder and CEO Gleb Budman about the economics of cloud storage, including his company's recent 60 percent reduction in download pricing. Backblaze—which is known for its open sourcing its high-density, low-cost storage "pods" and for detailed analyses on the reliability of the consumer-grade hard drives it uses—now stores over 300 petabytes of data.
In the news segment, Harris and co-host Barb Darrow (Fortune) discuss Oracle-vs.-AWS on data center scale, the past week's container acquisitions and DockerCon, and the rush for cloud providers to tackle offensive content with AI APIs.
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