en.Wedoany.com Reported - Data storage software provider Exaba has completed a seed funding round and is executing its global expansion plans, targeting the most competitive and lucrative US market. Exaba has made inroads in the local and Australian managed service provider (MSP) markets, with its value proposition for high-margin storage resources quickly winning customer loyalty. The company expects this proposition to attract a significant portion of the approximately 55,000 MSPs in the US.
Founded in Waikato, New Zealand, Exaba competes with major global cloud storage providers including AWS and Microsoft Azure. Its core argument is that hyperscale cloud services are too expensive, especially for MSPs struggling to survive in a commoditized market with thin margins. Exaba claims its LocalScaler platform can deliver enterprise-grade, locally managed storage with 80% profit margins at one-twentieth the cost of comparable hyperscale cloud services.
Co-founder Dr. Stuart Inglis stated that the company is building cloud services for individual MSPs, which has traditionally been difficult without large Linux and Windows technical teams. He explained that the company's long-term goal is to provide storage solutions for MSPs, as these providers indicate that online storage is too expensive for end users, with approximately 60% to 70% of users already unable to afford it. Exaba's storage is typically hosted on commodity hardware in local, independent data centers, making it simple and profitable for MSPs while remaining affordable for their customers.
Exaba approached potential customers directly before assuming demand for the LocalScaler storage cloud. Inglis said the team found MSPs and asked about their needs. Co-founder and Exaba CEO Peter Boyle stated that instead of building a product and then asking if it was suitable, the company spent two years with customers to accurately understand pain points before building to specification.
The 55,000 MSPs in the US market represent a massive opportunity. Exaba's value proposition has been validated by local demand, with the seed round attracting approximately $12 million in funding. While the US market is highly competitive, with most MSPs having existing storage providers, long-term relationships, and market development funds from hyperscalers, they lack annual recurring revenue from storage. Exaba's data shows that for a typical MSP with $20 million in annual revenue, storage generates $5 million in revenue at a 10% margin; switching to Exaba's model could increase that business's profitability by over $3 million.
Exaba has benefited from Inglis's international experience and the attention of early investor Guy Haddleton, who has been involved in the international expansion of companies such as Adaytum, Anaplan, and Xero. In a statement, Haddleton said data is exploding and Exaba is one of the most exciting startups he has seen in recent years. The company is deploying personnel to the US, in the form of Chief Customer Officer and current US President AJ Tills, who previously brought Uber to Australia and New Zealand. He plans to manage Exaba's North American operations from Austin, Texas, and has already established two development partners at an MSP conference in Las Vegas.
Tills noted that research shows 41% of MSPs cite implementing agentic AI as their biggest revenue opportunity this year, but 37% say AI is the biggest threat to their margins. This makes earning money on basic commodities more attractive. He said that while handing data over to Azure or AWS over the past 20 years was simple and scalable, hidden fees and unpredictable costs have proven unsuitable for the purpose. Exaba has created a solution at a very affordable cost, enabling MSPs to build high-margin storage businesses.
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