Wasabi Technologies (B)

Set in 2019, the “Wasabi Technologies (A)” case centers on Wasabi Technologies (Wasabi), a successful hot cloud storage company based in Boston, Massachusetts. Founder and CEO David Friend is ready to scale the four-year-old venture rapidly. Wasabi had so far focused on direct sales, but an opportunity to pivot to channel sales was on the horizon. The company's major competitors—Amazon, Google, and Microsoft—all sold their cloud storage products through multiple channels, and Friend feared that direct sales could never provide the momentum Wasabi needed to compete. However, channel sales would include changing Wasabi’s sales, marketing, and staffing strategies dramatically—effectively veering the company away from its already successful course. Was channel sales the right play for the burgeoning cloud storage provider? If so, how should Friend go about it? The “Wasabi Technologies (B)” case is set in 2024 after Wasabi has successfully established a channel sales program. Now, an opportunity exists to augment the company’s go-to-market strategy to include original equipment manufacturer (OEM) agreements with third-party vendors. OEM sales, like channel sales, could further Wasabi’s reach in its target markets, but involved tradeoffs such as giving up more margin and risking channel conflict with direct sales and channel sales staff. The case explores what choice to make, and why.