{"id":112835,"date":"2026-03-19T10:37:13","date_gmt":"2026-03-19T17:37:13","guid":{"rendered":"https:\/\/www.backblaze.com\/blog\/?p=112835"},"modified":"2026-03-19T10:37:15","modified_gmt":"2026-03-19T17:37:15","slug":"neoclouds-are-winning-on-compute-storage-shouldnt-slow-them-down","status":"publish","type":"post","link":"https:\/\/www.backblaze.com\/blog\/neoclouds-are-winning-on-compute-storage-shouldnt-slow-them-down\/","title":{"rendered":"Neoclouds Are Winning on Compute. Storage Shouldn\u2019t Slow Them Down."},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"583\" src=\"https:\/\/backblazeprod.wpenginepowered.com\/wp-content\/uploads\/2026\/03\/Q126-0009-Blog-Header-1440x820-1-1024x583.png\" alt=\"A decorative image showing servers, the cloud, and drives. \" class=\"wp-image-112836\" srcset=\"https:\/\/backblazeprod.wpenginepowered.com\/wp-content\/uploads\/2026\/03\/Q126-0009-Blog-Header-1440x820-1-1024x583.png 1024w, https:\/\/backblazeprod.wpenginepowered.com\/wp-content\/uploads\/2026\/03\/Q126-0009-Blog-Header-1440x820-1-300x171.png 300w, https:\/\/backblazeprod.wpenginepowered.com\/wp-content\/uploads\/2026\/03\/Q126-0009-Blog-Header-1440x820-1-768x437.png 768w, https:\/\/backblazeprod.wpenginepowered.com\/wp-content\/uploads\/2026\/03\/Q126-0009-Blog-Header-1440x820-1.png 1440w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p><a href=\"https:\/\/www.backblaze.com\/cloud-storage\/b2-neo\" target=\"_blank\" rel=\"noreferrer noopener\">Neoclouds<\/a> are having a moment.<\/p>\n\n\n\n<p>As demand for AI infrastructure keeps climbing, a new wave of providers is proving there\u2019s real appetite for something other than the traditional hyperscaler model. They\u2019re moving fast, specializing deeply, and building strong businesses around the layers that matter most to their customers: GPU access, high-performance compute, AI services, and developer experience.<\/p>\n\n\n\n<p>That momentum is real, as is the next bottleneck. For many neoclouds, the challenge is no longer just how to deliver more compute. It\u2019s how to deliver a more complete platform without taking on all the complexity of becoming a full-stack cloud provider. And that usually brings teams to the same question: Sshould we build our own storage layer?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key points: Why should neoclouds care about specialized storage?<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Neoclouds are capturing a major market opportunity by specializing in compute, AI, and high-performance infrastructure instead of trying to replicate the hyperscaler model. But without an independent, S3 compatible storage layer, many providers run into a split-stack problem: compute lives on the neocloud while data stays in a major cloud, bringing egress fees, friction, and architectural sprawl.<\/li>\n\n\n\n<li>Teams that decide to build storage themselves often underestimate what that really means. Whether the path is open-source software like Ceph or purpose-built hardware, the result is often the same: Slower execution, more operational burden, and less focus on the product that actually differentiates the business.<\/li>\n\n\n\n<li>The stronger strategy is to treat storage as a specialized tech stack layer and intentionally partner to solve the need, so internal teams can stay focused on compute, AI services, and customer experience.<\/li>\n\n\n\n<li>Backblaze gives neoclouds an S3 compatible object storage backbone that can be integrated quickly, scaled immediately, and delivered without the overhead of building and operating storage from scratch.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">The real neocloud opportunity is specialization<\/h2>\n\n\n\n<p>The shift toward neoclouds is really a shift toward specialization.<\/p>\n\n\n\n<p>For years, the default assumption in cloud infrastructure was that the winning model looked like a hyperscaler: Build the entire stack, own every layer, and expand horizontally into as many services as possible. That model produced scale, but it also produced operational sprawl, complexity, and costs that many customers are increasingly motivated to avoid.<\/p>\n\n\n\n<p>Neoclouds are succeeding because they\u2019re taking the opposite path. Instead of trying to be everything to everyone, they\u2019re building best-of-breed platforms around targeted workloads and high-value services. That\u2019s especially true in AI, where performance, cost control, and speed matter more than a long menu of loosely related products.<\/p>\n\n\n\n<p>But the closer a neocloud gets to becoming a full platform, the more pressure it faces to solve for storage.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The split-stack problem gets expensive<\/h2>\n\n\n\n<p>Without integrated object storage, customers often end up in a split-stack architecture. They run compute on a neocloud, but keep their data parked in a major cloud provider, which creates problems quickly.<\/p>\n\n\n\n<p>For example: Large training datasets, model checkpoints, and output artifacts have to move across environments, costs become harder to predict, egress charges start to shape architecture decisions, and performance can suffer when storage and compute are no longer designed to work together.<\/p>\n\n\n\n<p>At that point, storage becomes a core requirement for offering a platform that feels complete, efficient, and economically viable.<\/p>\n\n\n\n<p>So teams ask the obvious question: should we build it ourselves?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Building storage usually means building a second company inside your company<\/h2>\n\n\n\n<p>This is where the conversation often gets framed too narrowly.<\/p>\n\n\n\n<p>On paper, the decision can look straightforward: deploy open-source software such as Ceph, or design purpose-built hardware for tighter control over performance and economics.<\/p>\n\n\n\n<p>In reality, both paths create the same strategic problem. They pull engineering focus away from your core platform and into a long-term storage business you never actually meant to start.<\/p>\n\n\n\n<p>That matters because storage is not just infrastructure. It is an operating discipline. It comes with its own tuning, scaling, durability trade-offs, support burden, procurement risk, migration complexity, and day-two operational entropy.<\/p>\n\n\n\n<p>Once you build it, you own all of it.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The software trap: Ceph is open source, not low overhead<\/h2>\n\n\n\n<p>Ceph is often the default option for teams exploring S3 compatible storage because it appears flexible, proven, and relatively accessible on commodity hardware.<\/p>\n\n\n\n<p>And to be clear, Ceph can be powerful. But there\u2019s a big difference between deploying Ceph and running it well at scale.<\/p>\n\n\n\n<p>In production, Ceph demands specialized expertise. Teams have to manage CRUSH maps, OSD tuning, replication behavior, rebalancing events, and the network impact that comes with those changes. Those are not occasional tasks. They are part of the ongoing operational load.<\/p>\n\n\n\n<p>That burden grows as environments get larger and more performance-sensitive.<\/p>\n\n\n\n<p>For AI and high-performance compute use cases, generic Ceph deployments can also become throughput bottlenecks. When storage ceilings start constraining training jobs or data-intensive workflows, the problem is no longer confined to the storage team. It starts affecting the value of your core compute offering.<\/p>\n\n\n\n<p>And migration is rarely simple. Because data is distributed across the cluster in ways that are optimized for internal resilience, moving out of a Ceph environment can become a resource-heavy extraction exercise that introduces risk to live workloads.<\/p>\n\n\n\n<p>So while Ceph may reduce license costs up front, it can create a much more expensive operational reality over time.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The hardware trap: more control, more rigidity<\/h2>\n\n\n\n<p>For some neocloud teams, custom storage hardware feels like the more strategic answer.<\/p>\n\n\n\n<p>The logic is easy to understand: if storage is critical, why not optimize the hardware and software stack together and get more predictable performance?<\/p>\n\n\n\n<p>The issue is that custom storage hardware rarely stays clean and predictable for long.<\/p>\n\n\n\n<p>Supply chains change. Drive capacities shift. Components become harder to source consistently. Architectures designed around one hardware profile suddenly have to absorb another. This dynamic can leave teams paying for density they can\u2019t fully use or reworking systems to accommodate equipment that wasn\u2019t part of the original plan.<\/p>\n\n\n\n<p>Durability management adds another layer of complexity. As systems age, parity strategies and erasure coding decisions may need to change to maintain reliability. That can reduce usable capacity, increase cost per terabyte, and trigger compute-intensive re-encoding processes at exactly the wrong time.<\/p>\n\n\n\n<p>Then there\u2019s the networking layer. At scale, object storage is not just disks and nodes. It also depends on a traffic management architecture capable of handling massive ingress and egress flows without introducing opaque failure points. Whether you build around open source components or buy expensive hardware appliances, you\u2019re signing up for another category of highly specialized infrastructure work.<\/p>\n\n\n\n<p>And all of that comes with a capital model that is harder to unwind. Hardware investments lock teams into depreciation cycles and planning assumptions that may not match where the market is headed next.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The strategic shift: own differentiation, not every layer<\/h2>\n\n\n\n<p>The most important shift here is not technical. It\u2019s organizational.<\/p>\n\n\n\n<p>At a certain point, the storage question becomes a question of where your best people should spend their time.<\/p>\n\n\n\n<p>Should your engineers be tuning replication policies, planning hardware refreshes, and troubleshooting storage network behavior?<\/p>\n\n\n\n<p>Or should they be improving the platform features your customers actually choose you for?<\/p>\n\n\n\n<p>For most neoclouds, the answer is clear.<\/p>\n\n\n\n<p>Their advantage comes from how well they deliver compute, how quickly they adapt to AI demand, how smooth their developer experience feels, and how effectively they help customers run modern workloads. That is where focus compounds. That is where differentiation lives.<\/p>\n\n\n\n<p>Storage matters enormously, but that does not mean it has to be built in-house.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Storage works better as a specialized utility<\/h2>\n\n\n\n<p>The neocloud ecosystem works best when providers can connect to open, specialized layers instead of rebuilding the entire stack themselves.<\/p>\n\n\n\n<p>When storage is treated as a utility rather than an internal R&amp;D project, teams can move faster and stay aligned with what the business actually needs. They avoid procurement cycles, reduce operational overhead, and eliminate a category of complexity that would otherwise keep expanding over time.<\/p>\n\n\n\n<p>Equally importantly, they can offer customers a more complete and coherent platform without forcing data to remain trapped in legacy cloud environments.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How Backblaze helps neoclouds move faster<\/h2>\n\n\n\n<p>Backblaze gives neoclouds an independent, S3-compatible object storage backbone that can plug into existing compute, AI, and container workflows without requiring a storage buildout from scratch.<\/p>\n\n\n\n<p>That means teams can:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Integrate with existing tooling:<\/strong> Use a drop-in, API-compatible storage layer that works with existing workflows, SDKs, CLIs, and infrastructure tools.<\/li>\n\n\n\n<li><strong>Reduce operational burden:<\/strong> Offload the complexity of durability engineering, bit-rot protection, fleet management, and storage operations.<\/li>\n\n\n\n<li><strong>Avoid punitive egress economics:<\/strong> In Backblaze-powered and colocated partner environments, move data between compute and storage without the cost friction that often comes with major cloud architectures.<\/li>\n\n\n\n<li><strong>Scale immediately:<\/strong> Go from terabytes to exabytes without waiting on hardware procurement, deployment schedules, or expansion projects.<\/li>\n\n\n\n<li><strong>Keep teams focused:<\/strong> Direct engineering effort toward the product roadmap instead of a second internal storage program.<\/li>\n<\/ul>\n\n\n\n<p>Backblaze also brings the underlying scale and performance neoclouds need to support modern AI and data-intensive workloads, including up to 1Tbps aggregate throughput, 11 nines of annual durability, a 99.9% uptime SLA, and enterprise security and compliance capabilities.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Build what matters<\/h2>\n\n\n\n<p>Neoclouds are winning because they know where to specialize.<\/p>\n\n\n\n<p>That focus is their strength. It is also their opportunity.<\/p>\n\n\n\n<p>The fastest path to a stronger platform is not to recreate every layer of the cloud stack. It is to build the parts that make your business distinct, then connect them to the right partners for the rest.<\/p>\n\n\n\n<p>Storage is too important to ignore, but it is also too easy to underestimate.<\/p>\n\n\n\n<p>If you want to move faster, serve customers better, and keep your roadmap centered on what makes your platform valuable, don\u2019t turn storage into a distraction.<\/p>\n\n\n\n<p>Build what matters. Let Backblaze handle the storage.Interested in learning how Backblaze supports neocloud platforms? Explore <a href=\"https:\/\/www.backblaze.com\/cloud-storage\/b2-neo\" target=\"_blank\" rel=\"noreferrer noopener\">B2 Neo<\/a> or talk with our team about building a more open, AI-ready storage architecture.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Discover how cloud storage eliminates the split-stack problem and capital rigidity, allowing neoclouds to scale immediately and focus engineering efforts on their core AI and compute platforms.<\/p>\n","protected":false},"author":205,"featured_media":112836,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[7,434,482,1],"tags":[489,468],"class_list":["post-112835","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cloud-storage","category-featured-1","category-hybrid-cloud","category-uncategorized","tag-ai-ml","tag-b2cloud","entry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Neoclouds Are Winning on Compute. Storage Shouldn\u2019t Slow Them Down.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.backblaze.com\/blog\/neoclouds-are-winning-on-compute-storage-shouldnt-slow-them-down\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Neoclouds Are Winning on Compute. 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With extensive experience building the product marketing function at Vultr, he brings deep knowledge of the cloud infrastructure industry to Backblaze. David's passion for technology means his basement is a mini data center, filled with homelab projects where he spends his free time enhancing his knowledge of the industry and becoming a better informed expert on all things backup and archive. Connect with him on LinkedIn.","url":"https:\/\/backblazeprod.wpenginepowered.com\/blog\/author\/davidjohnson\/"}]}},"jetpack_featured_media_url":"https:\/\/backblazeprod.wpenginepowered.com\/wp-content\/uploads\/2026\/03\/Q126-0009-Blog-Header-1440x820-1.png","_links":{"self":[{"href":"https:\/\/backblazeprod.wpenginepowered.com\/blog\/wp-json\/wp\/v2\/posts\/112835","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/backblazeprod.wpenginepowered.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/backblazeprod.wpenginepowered.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/backblazeprod.wpenginepowered.com\/blog\/wp-json\/wp\/v2\/users\/205"}],"replies":[{"embeddable":true,"href":"https:\/\/backblazeprod.wpenginepowered.com\/blog\/wp-json\/wp\/v2\/comments?post=112835"}],"version-history":[{"count":0,"href":"https:\/\/backblazeprod.wpenginepowered.com\/blog\/wp-json\/wp\/v2\/posts\/112835\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/backblazeprod.wpenginepowered.com\/blog\/wp-json\/wp\/v2\/media\/112836"}],"wp:attachment":[{"href":"https:\/\/backblazeprod.wpenginepowered.com\/blog\/wp-json\/wp\/v2\/media?parent=112835"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/backblazeprod.wpenginepowered.com\/blog\/wp-json\/wp\/v2\/categories?post=112835"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/backblazeprod.wpenginepowered.com\/blog\/wp-json\/wp\/v2\/tags?post=112835"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}