How The Hard Drive Crisis Led To One Company Buying Up 5.5PB Of Costco Storage

Flooding in Thailand made getting a hard drive a lot more expensive late last year. It wasn't a huge deal to most of us, but for a small cloud storage company, it was almost death. Staying alive took creativity. And Costco.

About a year ago, the 3TB internal drives that Blackblaze — which sells unlimited cloud storage for $US5 a month — had been using shot up from about $US130 to $US360. And while the human cost of the floods was enormous, the company also needed to do something to keep itself afloat.

It turned to cheaper external drives. Basically, the answer was to buy the drives, rip them open and stick their guts into the 135TB "pods" that the company uses — like shucking an oyster. Costco had the best deals, and employees went there to buy 50 or so 3TB external drives at a time. Then things really started to get complicated:

The "Two Drive Limit" signs started appearing in retail stores in mid-November. At first we didn't believe them, but we quickly learned otherwise. Sometimes, we talked our way into more, but we heard "2 is the limit" a lot. We started doing "drive math": 2 drives a day per store, times 3 stores per day, times 5 "farmers", times 7 days a week is 210 drives. That would be sufficient, but in reality it didn't work out that way. Stores were stocking out of drives on a regular basis and we really couldn't farm everyday, but we kept at it. One Wednesday afternoon, after working all day at Backblaze, Yev circled the San Francisco Bay hitting local Costco and Best Buy stores — 10 stores, 46 drives, 212 miles on his Nissan.

Naturally, with the Christmas holidays coming up, Costco couldn't have a couple of guys buying up all of the external drives in its stores. So Blackblaze started asking friends and family to help buy drives and coming up with other crazy ideas, such as driving a rental truck around the US and buying thousands of drives at places without a purchase limit.

Ultimately, the hard drive shortage subsided, and 1900 bargain basement hard drives later, the company is doing just fine. It's a story packed with ingenuity — unless you were trying to buy a 3TB external hard drive late last year. Then this is the story of the jerks who ruined your Christmas. [Blackblaze via GigaOm]


Comments

    So kids running around in a Nissan to score storage is all it takes to make a cloud storage company. SOLD! I'll put all my valuable info up there with them. This article is proof that cloud storage is a joke.

      they offer unlimited cloud storage for $5 a month... you get what you pay for, want more piece of mind you pay more money with another company

        I don't think you realise BackBlaze's setup and how they run their hardware, you should really check it out. BackBlaze stands out from the rest in terms of setup costs.

      OK smartass...how exactly would you have done it? have you even looked at their company before making your lameass comment?

      At no point did they say it was in the attempt to "make a cloud storage company"; it was a well played move by a disadvantaged company to acquire enough hard drives to properly service their customers.

      If anything, it's admirable; they have catered towards their users needs at any cost and they didn't have to jack up the price. Unlimited storage is now $3.96/month.

      Cloud storage has it's advantages as well... If it wasn't for my Dropbox account, I'd have lost all of my photos during my interstate trip last year. If it wasn't for places like Imgur, I wouldn't have somewhere to quickly store images to help people out on forums.

      you have no idea how backblaze's product is setup. they use consumer level drives plus multiple redundancy copies to keep the costs down.

    Just like 'smufing' - where the smurfs travel from chemist to chemist to stock up on Codral original tablets to make meth.

    Company's name is BackBlaze not BlackBlaze.

    #correction

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