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Backblaze
Backblaze
Backblaze
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Backblaze, Inc. is an American cloud storage and data backup company based in San Mateo, California. It was founded in 2007 by Gleb Budman and others.[3] Its services are intended for both business and personal markets.

Key Information

History

[edit]

Backblaze was established in 2007 in San Mateo, California.[4] In 2008, the company released online backup services to support PCs running Apple's macOS and Microsoft's Windows.[4]

In October 2021, Backblaze filed to go public on the Nasdaq under the symbol BLZE.[4] In November, the company launched its public IPO.[5]

Backblaze and Catalogic, a data protection vendor, announced their partnership in March 2022.[6]

Since 2013, Backblaze has reported quarterly reliability statistics for its data center hard drives, showing annual failure rates for each model.[7][8]

On November 28, 2025, Backblaze announced a strategic integration with Shareio, a new platform enabling creators to monetize and protect their digital content. [9]

Backblaze has six data centers; four in the United States, one in Canada and one in Europe.[10][11]

As of April 2025, Backbaze has been reporting losses every quarter ever since going public in November 2021.[12]

Products

[edit]

Backblaze's first product was its computer backup, offering users to back up their computer data continuously and automatically with a monthly subscription service.[13]

In September 2015, Backblaze launched a new product, B2 Cloud Storage. Being an infrastructure as a service (IaaS), it is targeted at software integration for different kinds of businesses.[14]

In May 2020, Backblaze released an Amazon S3-compatible API, allowing customers to use existing tools and applications with B2 Cloud Storage without rewriting them.[15] In May 2022, Backblaze released its cloud replication services, which allow customers to back up and store data in a location that is geographically separate from the data's primary location.[16][17]

References

[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

Backblaze

View on Grokipedia
from Grokipedia
Backblaze, Inc. is an American cloud storage and backup company headquartered in San Mateo, California, that provides unlimited online backup services for personal computers and businesses, as well as B2 Cloud Storage, a scalable object storage platform compatible with Amazon S3 APIs. Founded in 2007 by seven co-founders including Gleb Budman, Brian Wilson, and Billy Ng, the company emerged as a response to the growing need for affordable, user-friendly data protection solutions in the early cloud computing era. Backblaze went public on the Nasdaq stock exchange in November 2021 under the ticker symbol BLZE, after raising less than $3 million in prior venture funding, marking it as a bootstrapped success story in the tech industry. The company's core offerings include automated computer backup for Mac and PC users, which excludes cloud-synced folders such as Dropbox on Mac to prevent performance degradation and compatibility issues with modern cloud providers, while allowing unlimited storage of files, photos, and system data with continuous protection against and accidental deletions, and B2 Cloud Storage, designed for developers, media professionals, and enterprises to store, access, and manage large datasets at low costs—often one-fifth the price of major competitors. Backblaze emphasizes transparency via its quarterly hard drive reliability reports, which have become an industry benchmark for storage hardware insights. As of 2025, Backblaze serves over 500,000 customers across 175 countries, managing more than 5 exabytes of data while prioritizing , , and simplicity to support AI workflows, application hosting, and media archiving.

History

Founding

Backblaze was founded on April 20, 2007, in a Palo Alto apartment by seven co-founders: Gleb Budman, Brian Wilson, Billy Ng, Casey Jones, Damon Uyeda, Tim Nufire, and Nilay Patel. The company was officially incorporated in Delaware on that date, marking the formal inception of the venture. The initial motivation stemmed from the founders' recognition of widespread data loss risks in an increasingly digital world, particularly the failure of individuals to maintain reliable backups for personal computers. Inspired by a personal anecdote involving a friend's crashed computer and the absence of backups, co-founder Brian Wilson sought to address the core problem: most people did not back up their data due to the complexity and high costs of existing solutions. At the time, available services were often limited in scope, required manual intervention, failed to back up all files automatically, or were prohibitively expensive, leading the founders to envision an affordable, unlimited cloud-based backup option that would operate seamlessly in the background. Backblaze pursued a bootstrapped growth model, relying on self-funding and minimal outside investment—totaling less than $3 million—until its initial public offering in 2021, which allowed the company to scale without heavy venture capital dependence. This approach emphasized operational transparency, such as publicly sharing engineering insights and cost breakdowns, alongside a commitment to simplicity in product design to minimize user friction. As the company expanded beyond its apartment origins, it relocated its headquarters to San Mateo, California, in late 2010, establishing a dedicated office space to support growing operations.

Growth and Milestones

Backblaze launched its first product, the Computer Backup service, on September 16, 2008, providing unlimited online for personal computers running macOS and Windows operating systems. This marked the company's entry into the market, initially focusing on consumer and needs for automated data protection. In 2015, Backblaze expanded its offerings with the introduction of B2 on September 22, shifting toward solutions designed for developers and enterprises seeking affordable, S3-compatible options. This launch diversified the company's portfolio beyond services, emphasizing low-cost, high-durability storage to compete with major providers. A significant milestone occurred on , 2021, when Backblaze completed its (IPO) on the exchange under the BLZE, raising funds to support growth and product development as its first major external capital raise. In March 2022, Backblaze formed a key partnership with Catalogic Software, announced on March 15, to enhance protection by integrating B2 Cloud Storage with Catalogic's DPX and CloudCasa solutions for enterprise and backups. The company experienced steady workforce expansion, reaching 381 full-time employees as of December 31, 2023, primarily based in , with a focus on and operations roles. By 2025, Backblaze had grown its customer base to serve over 500,000 customers across 175 countries, reflecting global adoption of its cloud services for and needs.

Products and Services

Computer Backup

Backblaze's computer backup service provides unlimited, automated cloud backup for personal computers running Windows and macOS, ensuring continuous protection of user data against loss from hardware failure, , or other threats. Launched in , the service installs a lightweight client that runs in the background, scanning and backing up all user-generated files, including documents, photos, music, and system files, without requiring manual intervention or file selection. This approach simplifies data protection for everyday users by handling the process seamlessly across internal drives and connected external storage devices. To set up the service on a MacBook, users download and install the Backblaze client application from the official website at backblaze.com. After installation, they create an account, which provides unlimited storage for a single computer. The client then automatically and continuously backs up files in the background, excluding temporary and system files that can be reinstalled, such as macOS system folders and caches, to optimize the process without manual folder selection. Recent updates to the Backblaze Mac client (version 9.0 and later) automatically exclude cloud-synced folders, including Dropbox (typically located in ~/Library/CloudStorage), to prevent performance problems, excessive data usage from constant sync changes, and compatibility issues with modern cloud providers like Dropbox's File Provider integration. This exclusion applies by default to local Dropbox-synced files, even if fully downloaded and not online-only; Backblaze may remove previous backups of those files without warning. The service backs up only local drive contents and does not back up directly from Dropbox cloud accounts. Key features include robust versioning, which retains up to 30 days of file history by default to allow recovery of previous versions in case of accidental changes or deletions, with options to extend to one year at no extra cost or indefinitely for an additional fee. Restoration is flexible, supporting direct downloads via the web interface, free shipping of encrypted USB drives containing the full (with a return policy for no charge), and access through dedicated mobile apps for and Android devices. The service also integrates external drives automatically, backing them up without limits or additional charges, while employing to secure data in transit and at rest. These elements make the process reliable and user-friendly, emphasizing ease of recovery over complex configurations. The model is straightforward and subscription-based, charging a flat fee per computer with no caps on storage volume: $9 per month, $99 annually (an 8% savings), or $189 for two years (a 13% discount). This structure eliminates concerns over data growth or overage fees, making it cost-effective for ongoing use. A 15-day free trial is available to the service without commitment. Designed primarily for individuals and small teams, the service targets users who prioritize simple, affordable backup solutions without the need for IT expertise or intricate setups, distinguishing it from more developer-focused storage options.

B2 Cloud Storage

Backblaze B2 Cloud Storage is an object storage service launched on September 25, 2015, designed as an S3-compatible API to provide affordable, scalable cloud storage for developers and businesses. It supports standard object storage operations, enabling users to store and retrieve unstructured data such as files, images, and backups via a simple web interface or API calls. The service emphasizes cost efficiency, with storage priced at $6 per terabyte per month as of 2025, positioning it at approximately one-fifth the cost of major competitors like Amazon S3 Standard, which charges around $23 per terabyte per month. Uploads to B2 are free, while downloads incur fees of $0.01 per gigabyte after the first three times the average monthly storage amount, which is provided at no extra cost. Key features of B2 Cloud Storage include event notifications, which alert users in real-time to changes in objects such as uploads, updates, or deletions, allowing automation of workflows like or backups; this capability became generally available in October 2024. Another significant feature is multi-region replication, introduced in June 2022, which enables automatic copying of data across geographic regions—such as between U.S. and European data centers—for enhanced resilience and compliance without additional service or egress fees beyond standard storage costs. Egress fees are waived for integrations with numerous partners, including content delivery networks like and , as well as compute providers like Vultr, facilitating seamless data transfer to these services at no extra bandwidth cost. B2 Cloud Storage is widely used for media workflows, where it handles large-scale video and storage with high throughput; data archiving, leveraging its low-cost retention for long-term preservation; and application backups, supporting automated snapshots for development and disaster recovery. Its S3 compatibility ensures broad integrations, such as with AWS S3-compatible tools like the AWS CLI, including , and various cloud platforms, allowing users to migrate or hybridize storage without major code changes. These capabilities make B2 suitable for general-purpose needs, emphasizing accessibility and economic scalability over specialized high-performance requirements.

Enterprise Solutions

Backblaze's enterprise solutions extend its B2 Cloud Storage platform to meet the demands of large-scale business users, emphasizing scalability, security, and performance for data-intensive operations. These offerings include B2 Overdrive, a high-performance tier launched in April 2025, which delivers terabit-speed throughput optimized for AI, machine learning (ML), and high-performance computing (HPC) workloads at a starting price of $15 per terabyte per month—significantly lower than comparable hyperscaler options. For media management, B2 integrates with media asset management (MAM) systems, digital asset management (DAM) tools, and network-attached storage (NAS) devices to streamline workflows for video production and content distribution. Compliance-focused data protection is supported through features like Object Lock, which enables write-once, read-many (WORM) immutability to prevent alterations or deletions, aligning with standards such as SOC 2, HIPAA, GDPR, and PCI-DSS. Key enterprise features include the Enterprise Web Console, introduced in May 2025, which provides centralized management for IT administrators and managed service providers (MSPs), incorporating role-based access controls (RBAC), mandatory (MFA), and (SSO) for zero-trust security. Dedicated support and custom agreements (SLAs) are available to ensure and tailored performance, with integrations facilitating seamless workflows; for instance, B2 connects with tools via panels like Sofile for direct file handling in creative suites, and supports enterprise software such as for backup and for NAS synchronization. These solutions have seen strong adoption in data-heavy industries, including media production and sectors driven by AI demands, as evidenced by B2 Cloud Storage revenue growing 28% year-over-year in Q3 2025, contributing to overall company of $37.2 million. Enterprises leverage B2 for its cost-effective scaling in AI training, media archiving, and HPC , with expansions like additional data regions in July 2025 enhancing capacity for complex workflows. Backblaze differentiates its enterprise approach through an open cloud model that avoids , relying on S3-compatible APIs to enable easy integration with multi-cloud environments and third-party tools, in contrast to proprietary ecosystems that restrict flexibility. This strategy supports modular architectures, allowing businesses to pair B2 with compute providers like Vultr or edge networks like without data transfer penalties beyond three times the stored volume.

Technology

Storage Architecture

Backblaze's storage architecture is built on a distributed, fault-tolerant system designed for and cost efficiency, leveraging commodity hardware such as consumer-grade hard drives organized into Storage Pods. Each Storage Pod consists of 45 to 60 drives housed in a 4U server, forming the foundational unit for . These pods are grouped into Vaults, typically comprising 20 pods with a total of up to 1,200 drives, where data is automatically distributed across the pods to ensure and . This design allows Backblaze to handle large-scale storage at a fraction of the cost of proprietary systems by avoiding specialized enterprise hardware. Central to is the use of Reed-Solomon erasure coding, which divides files into 20 —17 and 3 parity —for enhanced . This encoding enables reconstruction from any 17 , tolerating the of up to 3 pods or multiple drives without loss, achieving an annual rate of 99.999999999% (11 nines). Automated sharding distributes these across drives in logical units called Tomes, with one shard per drive to prevent correlated . Multi-tenant isolation is maintained through logical separation via customer-specific buckets and application keys, ensuring that from different users remains segregated within shared Vault infrastructure. Since May 2020, Backblaze B2 Cloud Storage has provided full compatibility with the , supporting common operations like object uploads, downloads, and lifecycle management without requiring code changes for existing S3-based applications. This compatibility facilitates seamless migrations from providers like AWS, broadening . The supports efficient handling of petabyte-scale datasets with low latency; individual Vaults can ingest up to 20 Gbps of data, and as of early 2025, Backblaze manages over four exabytes of across its systems.

Data Centers

Backblaze operates six data centers as of 2025, providing the physical infrastructure for its cloud storage services across and . Four facilities are located in the United States, with two in near Sacramento (including Sacramento and Stockton), one in , and one in . The company expanded internationally with a data center in , , serving the , and its newest facility in , Canada, which opened on January 7, 2025, to support requirements for Canadian customers. These data centers are designed for high-density storage, with each supporting exabyte-scale capacity through Backblaze's storage pods—modular units that integrate thousands of hard drives into fault-tolerant arrays. This enables efficient scaling to handle growing data volumes, with the entire network collectively managing over five exabytes of as of late 2025. The facilities leverage colocation partnerships, such as with Coresite in Reston and Cologix in , to ensure reliable power, connectivity, and redundancy. Sustainability is a key consideration in Backblaze's operations, emphasizing energy-efficient designs to minimize environmental impact. Facilities incorporate advanced cooling technologies, such as the river -based closed-loop system at the Stockton site, which uses natural sources for heat exchange and reduces power usage by up to 30% relative to conventional air-cooled systems. While specific sourcing varies by location, these efficiencies contribute to lower overall carbon emissions across the infrastructure.

Operations and Impact

Hard Drive Reliability Reports

Backblaze launched its Hard Drive Reliability Reports program in 2013, offering quarterly insights into the failure rates of hard disk drives (HDDs) deployed in its production data centers. These reports draw from a substantial fleet, with over 317,000 drives analyzed in the Q1 2025 edition alone, encompassing millions of cumulative drive days of real-world operation. By aggregating data from diverse environments, the reports provide on drive longevity, helping to demystify reliability trends beyond manufacturer specifications. The methodology centers on computing the (AFR) for individual drive models, which normalizes failure incidents against the total operational time while considering variables like drive age and usage intensity. Only models with sufficient —typically more than 100 drives and 10,000 drive days—are included to ensure statistical robustness, excluding test units or those with inadequate runtime. This approach yields AFR figures that reflect field performance, updated quarterly to capture evolving patterns across thousands of units. Key findings from the reports underscore improvements in modern HDD technology, particularly among high-capacity models. In the Q3 2025 report, the overall quarterly AFR rose to 1.55%, while high-capacity drives (20TB and greater) continued to demonstrate lower failure rates relative to the fleet average, comprising 21% of the active drive pool with a lifetime AFR of 1.31%. The Q1 2025 report highlighted exceptional reliability in four models with zero recorded failures during the quarter: the 4TB HGST HMS5C4040ALE640, 8TB Seagate ST8000NM000A, 12TB Seagate ST12000NM000J, and 14TB Seagate ST14000NM000J. These publications have profoundly shaped the storage sector by informing hardware strategies with transparent, large-scale that contrasts with limited lab tests. Backblaze makes the underlying datasets freely downloadable in formats like CSV and , fostering industry-wide analysis and accountability while requiring proper attribution.

Business Model and Financial Performance

Backblaze operates on a centered around affordable, transparent and services, emphasizing simplicity and cost predictability to attract small businesses, developers, and enterprises seeking alternatives to high-fee providers. The company generates revenue primarily through subscription-based fees for B2 Cloud Storage and personal computer services, with additional income from enterprise add-ons such as enhanced support, integrations, and capacity reservations. A key differentiator is its pricing structure, which includes no egress fees for data downloads up to three times the average monthly stored amount, minimizing unexpected costs for users and promoting higher retention and usage volumes. Financially, Backblaze reported full-year 2023 of $102 million, marking a 20% increase from the prior year, though it incurred a net loss of $58.9 million due to investments in infrastructure and sales expansion. By the third quarter of 2025, the company achieved of $37.2 million, reflecting 14% year-over-year growth overall, driven by a robust 28% increase in the B2 Cloud Storage segment amid rising demand for . Gross margins improved to 62% in Q3 2025, up from 55% the previous year, highlighting operational efficiencies from extended asset useful lives and scaled storage capacity. Backblaze went public in November 2021 via an on the under the ticker BLZE, raising approximately $101 million to fund expansions and product development. Post-IPO, the company's has experienced volatility, with its standing at around $328 million as of November 2025, reflecting investor focus on its path to sustained growth in the competitive cloud market. are managed through regular SEC filings and quarterly calls, providing transparency on strategic priorities like B2 acceleration. The company's financial is supported by a conservative , including minimal with a of approximately 0.03 and $50 million in cash reserves as of late 2025, enabling reinvestment without heavy reliance on external financing. Backblaze emphasizes profitability through cost controls, such as optimizing hard drive utilization and automating operations, resulting in positive adjusted EBITDA of $8.4 million (23% of revenue) in Q3 2025—its strongest quarterly margin to date. This approach positions the firm for long-term viability in a capital-intensive industry.

Recent Developments

AI and Network Enhancements

In November 2025, Backblaze announced significant network upgrades to support AI data movement, including transitions to 400G interfaces from previous 100G standards, enabling up to 1 Tbps transfer speeds with low latency and zero . These enhancements incorporate advanced technologies such as PAM4 and MTP-16 connections to boost bandwidth and scale for handling multi-petabyte datasets across thousands of simultaneous connections. Reliability improvements in the upgraded network feature enhanced fault isolation and a distributed mesh architecture, which facilitate massive parallel transfers and minimize disruptions during high-volume AI operations. This infrastructure is specifically optimized for AI workflows, providing high-performance storage that sustains continuous high-bandwidth streams essential for GPU processing and model training. Backblaze's B2 Overdrive service exemplifies these AI-focused capabilities, delivering up to 1 Tbps throughput for exabyte-scale datasets while offering unlimited free egress to reduce costs for large-scale data exports. It integrates seamlessly with AI tools, including GPU clusters, through private networking that ensures secure, high-speed transfer to environments worldwide. According to Backblaze's Q3 2025 network statistics, AI traffic accounted for nearly one-quarter of total network flows, reflecting the growing dominance of AI-driven data demands. These upgrades have driven an order-of-magnitude increase in data transfer patterns, with high-bandwidth egress via parallel servers and destination nodes, underscoring the scale of AI's impact on network operations.

Global Expansion

In 2025, Backblaze significantly expanded its global data regions to enhance support for AI, (HPC), and media workflows, announcing a major capacity increase in July that doubled down on high-performance storage infrastructure. This expansion built upon the company's existing U.S. and European data centers by adding optimized resources for data-intensive applications, enabling faster processing and greater scalability for international users. A key milestone was the opening of the new CA East data region in , , in January 2025, in partnership with Cologix at their TOR3 facility. This addition addressed growing demand in by providing lower latency and improved options for Canadian businesses, ensuring compliance with local regulations while reducing data travel distances for enhanced performance. Backblaze's strategies for global growth emphasized partnerships and regulatory alignment, such as adherence to the EU's (GDPR) through dedicated data processing agreements for EEA residents, facilitating secure data handling in . These efforts, combined with collaborations like the one with for optimized network connectivity, have extended the company's reach to over 500,000 customers across 175 countries, with a strong focus on and to minimize latency and support localized operations. Looking ahead, Backblaze continues to invest in scalable to accommodate exabyte-scale growth, as outlined in its strategic of hard drives designed for massive storage volumes. These ongoing commitments aim to sustain expansion amid rising global demand for services.

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