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What Is Wasabi Building, and How Does the Lyve Cloud Acquisition Advance Its Position?
The acquisition of Lyve Cloud from Seagate Technology expands Wasabi Technologies’ enterprise reach and edge alignment while reinforcing object storage as a persistent data platform.
04/09/2026
Key Highlights
- Wasabi acquires Lyve Cloud, adding infrastructure, customers, and operating capacity
- Lyve Cloud is an S3-compatible object storage service used for backup, archive, and data lake workloads
- The acquisition expands Wasabi’s data center footprint and deepens integrations with Veeam, Rubrik, and Commvault
- Seagate exits cloud service delivery and takes an equity stake in Wasabi
- The combined platform strengthens Wasabi’s role in backup, archive, and data lake environments while adding capacity to support growth
The News
Wasabi Technologies announced it will acquire the Lyve Cloud business from Seagate Technology. Seagate will receive equity in Wasabi as part of the transaction; additional financial terms were not disclosed. Seagate stated the transaction supports its focus on mass-capacity storage while transitioning Lyve Cloud customers to a dedicated storage provider. For more information, read the official Wasabi press release.
Analyst Take
The Lyve Cloud acquisition follows Wasabi’s recent $70 million equity raise at an approximate $1.8 billion valuation. That funding supports expansion into higher-performance storage tiers and AI workloads. This introduces a practical constraint. Expanding NVMe-backed infrastructure requires capital, access to supply, and time to deploy at scale.
Lyve Cloud adds capacity without requiring immediate expansion into flash infrastructure. It brings an existing HDD-backed object storage footprint into Wasabi’s platform. This allows Wasabi to scale capacity and onboard customers while controlling the pace of investment in higher-performance tiers. The result is a two-tier model where NVMe supports active workloads and HDD supports retention and bulk storage.
The fit between Wasabi and Lyve is strongest in edge and enterprise environments. Lyve was designed around data movement, with services that capture data at the edge, move it across constrained networks, and land it in object storage. These workflows are common in media production, energy exploration, and distributed sensor environments. Data is created outside the cloud, transferred in large volumes, and stored for long periods. Wasabi provides a cost-controlled destination once that data reaches centralized infrastructure.
This extends Wasabi’s reach into environments where storage is tied to ingestion and movement alongside retention. Lyve Cloud customers operate across distributed sites with requirements for compliance, sovereignty, and operational continuity. These characteristics introduce a more enterprise-oriented customer base than Wasabi’s traditional channel-led growth.
Importantly, Wasabi is not changing its core model. The company continues to deliver S3-compatible object storage with predictable pricing and no egress fees, supported by an ecosystem of integration partners. Lyve Cloud fits directly into that model. It uses the same API structure, follows a similar pricing approach, and supports the same primary workloads, including backup, archive, and data lake environments.
The equity structure of the deal is also significant. Seagate Technology takes ownership in Wasabi instead of a cash exit. This keeps Seagate tied to object storage demand while focusing on capacity supply. The roles are distinct. Seagate builds and supplies storage capacity. Wasabi delivers that capacity as a service.
In our view, Seagate’s decision to take equity reflects a preference for continuity over a clean cash exit. Selecting a buyer with a compatible operating model reduces disruption for existing customers, while the equity position maintains exposure to the growth of those workloads.
What Was Announced
The transaction includes Lyve Cloud, Seagate’s object storage service designed for large-scale workloads such as backup, archive, data lakes, and edge data aggregation. The service uses S3-compatible APIs and emphasizes predictable pricing and enterprise security.
Wasabi will assume Lyve Cloud’s existing infrastructure footprint, including deployed capacity, active customer workloads, and associated enterprise support operations. This expands Wasabi’s geographic presence and increases the volume of data managed within its platform at close.
Because both platforms use S3-compatible interfaces and share common ecosystem integrations, customer migration does not require application changes. Customers will transition account management, billing, and support to Wasabi, while existing workloads continue to run without modification.
The acquisition also simplifies deployment models for partners. Both platforms integrate with data protection providers including Veeam, Rubrik, and Commvault. Consolidating object storage under a single provider reduces storage endpoints and simplifies backup and recovery configurations.
Seagate’s equity stake establishes an ongoing relationship between the two companies. Seagate exits operation of a cloud service while maintaining exposure to storage consumption through Wasabi’s platform growth.
Looking Ahead
Customer migration, continuity of service, and support alignment will be critical as Wasabi transitions Lyve Cloud environments onto its platform. The value of the acquisition depends on Wasabi’s ability to retain and expand the Lyve Cloud customer base without disruption, particularly in environments where data volumes are large and operational expectations are high.
The next phase depends on how effectively Wasabi expands these accounts across its footprint. This includes increasing data volumes, extending into additional regions, and deepening integration with existing ecosystem partners. These workloads are long-lived and capacity-driven, which creates an opportunity for sustained growth if transitions are handled cleanly.
A second area to watch is how Wasabi balances investment between performance-oriented infrastructure and capacity-driven scale. The addition of Lyve Cloud provides a broader foundation for data persistence, while ongoing investment in higher-performance tiers will determine how effectively Wasabi can support AI-adjacent workloads and more demanding data pipelines. The interaction between these tiers will shape how Wasabi supports data workflows that require both throughput and cost control.
It will also be important to track whether Wasabi uses this expanded base to move further into AI-adjacent workloads or maintains its focus on storage economics. The company now has the scale, customer base, and capital to support either path.
In our view, the alignment between Wasabi and Lyve Cloud should simplify adoption. The shared pricing model, interfaces, and workloads allow customers to scale without changing how they deploy or manage object storage.
Don Gentile | Analyst-in-Residence -- Storage & Data Resiliency
Don Gentile brings three decades of experience turning complex enterprise technologies into clear, differentiated narratives that drive competitive relevance and market leadership. He has helped shape iconic infrastructure platforms including IBM z16 and z17 mainframes, HPE ProLiant servers, and HPE GreenLake — guiding strategies that connect technology innovation with customer needs and fast-moving market dynamics.
His current focus spans flash storage, storage area networking, hyperconverged infrastructure (HCI), software-defined storage (SDS), hybrid cloud storage, Ceph/open source, cyber resiliency, and emerging models for integrating AI workloads across storage and compute. By applying deep knowledge of infrastructure technologies with proven skills in positioning, content strategy, and thought leadership, Don helps vendors sharpen their story, differentiate their offerings, and achieve stronger competitive standing across business, media, and technical audiences.