Oppenheimer & Co, William Blair and Raymond James are the lead underwriters on Backblaze’s offering. In the cloud storage space, it competes with the likes of Inc’s Amazon Web Services, although Backblaze targets smaller companies.Īccording to a report Impact-of-COVID-19-on-the-Market- by Research and Markets, the global market for cloud computing services is projected to reach a revised size of $937.5 billion by 2027, growing at a compound annual rate of 17% over the seven years since 2020. It has since expanded into cloud storage, with over half a million overall customers across more than 175 countries. #Cloud backblaze thursday friday ipo softwareSan Mateo, California-based Backblaze, led by co-founder Gleb Budman, started in 2007 selling backup software to consumers and companies. Reuters reported in November that Backblaze was seeking to hire investment banks for a 2021 IPO that could value it at around $1 billion. initial public offering (IPO) on Monday, cashing in on growing demand for cloud computing from businesses expanding their digital offerings during the COVID-19 pandemic. The companies are now operating in line with government’s body language.(Reuters) – Cloud storage provider Backblaze Inc filed for a U.S. So many others have also been indicted and punished for various antitrust offences. In April, Alibaba was slapped with a $2.8 billion fine as a result of an antitrust investigation into the company’s activities. The recent government’s crackdown on China’s tech industry that has affected many of the big players, resulting in intense scrutiny, is instigating a move into the line of businesses that will have government’s support. Cloud service providers in the US are also increasingly moving to establish standalone operations.īut for Alibaba and other Chinese companies, the push for cloud computing is also a new way of receiving the blessing of the authorities. “Customizing our own server chips is consistent with our ongoing efforts toward boosting our computing capabilities with better performance and improved energy efficiency,” Jeff Zhang, president of Alibaba Cloud Intelligence, said in a press release.Ĭloud computing currently accounts for 8% of Alibaba’s total revenue as it works to expand internationally to markets dominated by US rivals. Besides seeing it as a key part of its future growth, the company believes developing its own will boost its efficiency. However, Alibaba is China’s largest cloud computing player, according to market analyst firm Canalys. The companies’ efforts have been backed by the government that is keen to eliminate its tech industry’s dependence on foreign chips. The telecom vendor, currently grappling with the impact of US sanctions, which have limited it from leading 5G roll out globally and producing enough smartphones to meet its consumers demand, has designed its own chips.Įarlier this year, another Chinese company, Baidu raised money to pursue a standalone semiconductor business. Following Huawei’s US sanctions, the push to develop homegrown chips has been on high, with many Chinese companies developing their own.īacked by the Chinese government, Huawei leads the trend. But the e-commerce giant did not disclose when the latest chip and server services will be available.įor Chinese companies in the cloud computing market, the niche strategy means more than winning market share. Alibaba will not be manufacturing the semiconductor but will be designing it. If Backblaze completes its initial public offering, it would join DigitalOcean in providing cloud capabilities to smaller businesses.Īlibaba and Backblaze are towing the niche path to survive the dominance of Amazon, Google and Microsoft in the cloud computing arena. Plus, existing customers more consistently stick with B2 than with backup, and B2 has higher annual average revenue per user. Per CNBC, B2 revenue saw a record growth of over 60% year over year in the first half of 2021, while the online backup business grew 12% during the same period. For Backblaze, the year has been amazing.
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