diff --git a/cmd/erasure-multipart.go b/cmd/erasure-multipart.go
index 21c48c592..38ed33686 100644
--- a/cmd/erasure-multipart.go
+++ b/cmd/erasure-multipart.go
@@ -401,36 +401,33 @@ func (er erasureObjects) newMultipartUpload(ctx context.Context, bucket string,
 		parityDrives = er.defaultParityCount
 	}
 
-	// If we have offline disks upgrade the number of erasure codes for this object.
-	parityOrig := parityDrives
+	if globalStorageClass.AvailabilityOptimized() {
+		// If we have offline disks upgrade the number of erasure codes for this object.
+		parityOrig := parityDrives
 
-	var offlineDrives int
-	for _, disk := range onlineDisks {
-		if disk == nil {
-			parityDrives++
-			offlineDrives++
-			continue
+		var offlineDrives int
+		for _, disk := range onlineDisks {
+			if disk == nil || !disk.IsOnline() {
+				parityDrives++
+				offlineDrives++
+				continue
+			}
 		}
-		if !disk.IsOnline() {
-			parityDrives++
-			offlineDrives++
-			continue
+
+		if offlineDrives >= (len(onlineDisks)+1)/2 {
+			// if offline drives are more than 50% of the drives
+			// we have no quorum, we shouldn't proceed just
+			// fail at that point.
+			return nil, toObjectErr(errErasureWriteQuorum, bucket, object)
 		}
-	}
 
-	if offlineDrives >= (len(onlineDisks)+1)/2 {
-		// if offline drives are more than 50% of the drives
-		// we have no quorum, we shouldn't proceed just
-		// fail at that point.
-		return nil, toObjectErr(errErasureWriteQuorum, bucket, object)
-	}
+		if parityDrives >= len(onlineDisks)/2 {
+			parityDrives = len(onlineDisks) / 2
+		}
 
-	if parityDrives >= len(onlineDisks)/2 {
-		parityDrives = len(onlineDisks) / 2
-	}
-
-	if parityOrig != parityDrives {
-		userDefined[minIOErasureUpgraded] = strconv.Itoa(parityOrig) + "->" + strconv.Itoa(parityDrives)
+		if parityOrig != parityDrives {
+			userDefined[minIOErasureUpgraded] = strconv.Itoa(parityOrig) + "->" + strconv.Itoa(parityDrives)
+		}
 	}
 
 	dataDrives := len(onlineDisks) - parityDrives
diff --git a/cmd/erasure-object.go b/cmd/erasure-object.go
index 089bdbf55..3ad9e03c8 100644
--- a/cmd/erasure-object.go
+++ b/cmd/erasure-object.go
@@ -1297,25 +1297,21 @@ func (er erasureObjects) putObject(ctx context.Context, bucket string, object st
 
 	storageDisks := er.getDisks()
 
-	parityDrives := len(storageDisks) / 2
-	if !opts.MaxParity {
-		// Get parity and data drive count based on storage class metadata
-		parityDrives = globalStorageClass.GetParityForSC(userDefined[xhttp.AmzStorageClass])
-		if parityDrives < 0 {
-			parityDrives = er.defaultParityCount
-		}
-
+	// Get parity and data drive count based on storage class metadata
+	parityDrives := globalStorageClass.GetParityForSC(userDefined[xhttp.AmzStorageClass])
+	if parityDrives < 0 {
+		parityDrives = er.defaultParityCount
+	}
+	if opts.MaxParity {
+		parityDrives = len(storageDisks) / 2
+	}
+	if !opts.MaxParity && globalStorageClass.AvailabilityOptimized() {
 		// If we have offline disks upgrade the number of erasure codes for this object.
 		parityOrig := parityDrives
 
 		var offlineDrives int
 		for _, disk := range storageDisks {
-			if disk == nil {
-				parityDrives++
-				offlineDrives++
-				continue
-			}
-			if !disk.IsOnline() {
+			if disk == nil || !disk.IsOnline() {
 				parityDrives++
 				offlineDrives++
 				continue
diff --git a/internal/config/storageclass/help.go b/internal/config/storageclass/help.go
index 72afafb77..a6af8b21c 100644
--- a/internal/config/storageclass/help.go
+++ b/internal/config/storageclass/help.go
@@ -1,4 +1,4 @@
-// Copyright (c) 2015-2021 MinIO, Inc.
+// Copyright (c) 2015-2024 MinIO, Inc.
 //
 // This file is part of MinIO Object Storage stack
 //
@@ -38,6 +38,12 @@ var (
 			Optional:    true,
 			Type:        "string",
 		},
+		config.HelpKV{
+			Key:         ClassOptimize,
+			Description: `optimize parity calculation for standard storage class, set 'capacity' for capacity optimized (no additional parity)` + defaultHelpPostfix(ClassOptimize),
+			Optional:    true,
+			Type:        "string",
+		},
 		config.HelpKV{
 			Key:         config.Comment,
 			Description: config.DefaultComment,
diff --git a/internal/config/storageclass/storage-class.go b/internal/config/storageclass/storage-class.go
index 15580a6aa..f0a430987 100644
--- a/internal/config/storageclass/storage-class.go
+++ b/internal/config/storageclass/storage-class.go
@@ -1,4 +1,4 @@
-// Copyright (c) 2015-2021 MinIO, Inc.
+// Copyright (c) 2015-2024 MinIO, Inc.
 //
 // This file is part of MinIO Object Storage stack
 //
@@ -40,11 +40,14 @@ const (
 const (
 	ClassStandard = "standard"
 	ClassRRS      = "rrs"
+	ClassOptimize = "optimize"
 
 	// Reduced redundancy storage class environment variable
 	RRSEnv = "MINIO_STORAGE_CLASS_RRS"
 	// Standard storage class environment variable
 	StandardEnv = "MINIO_STORAGE_CLASS_STANDARD"
+	// Optimize storage class environment variable
+	OptimizeEnv = "MINIO_STORAGE_CLASS_OPTIMIZE"
 
 	// Supported storage class scheme is EC
 	schemePrefix = "EC"
@@ -67,6 +70,10 @@ var (
 			Key:   ClassRRS,
 			Value: "EC:1",
 		},
+		config.KV{
+			Key:   ClassOptimize,
+			Value: "availability",
+		},
 	}
 )
 
@@ -82,6 +89,7 @@ var ConfigLock sync.RWMutex
 type Config struct {
 	Standard    StorageClass `json:"standard"`
 	RRS         StorageClass `json:"rrs"`
+	Optimize    string       `json:"optimize"`
 	initialized bool
 }
 
@@ -245,12 +253,40 @@ func (sCfg *Config) GetParityForSC(sc string) (parity int) {
 	}
 }
 
+// CapacityOptimized - returns true if the storage-class is capacity optimized
+// meaning we will not use additional parities when drives are offline.
+//
+// Default is "availability" optimized, unless this is configured.
+func (sCfg *Config) CapacityOptimized() bool {
+	ConfigLock.RLock()
+	defer ConfigLock.RUnlock()
+	if !sCfg.initialized {
+		return false
+	}
+	return sCfg.Optimize == "capacity"
+}
+
+// AvailabilityOptimized - returns true if the storage-class is availability
+// optimized, meaning we will use additional parities when drives are offline
+// to retain parity SLA.
+//
+// Default is "availability" optimized.
+func (sCfg *Config) AvailabilityOptimized() bool {
+	ConfigLock.RLock()
+	defer ConfigLock.RUnlock()
+	if !sCfg.initialized {
+		return true
+	}
+	return sCfg.Optimize == "availability" || sCfg.Optimize == ""
+}
+
 // Update update storage-class with new config
 func (sCfg *Config) Update(newCfg Config) {
 	ConfigLock.Lock()
 	defer ConfigLock.Unlock()
 	sCfg.RRS = newCfg.RRS
 	sCfg.Standard = newCfg.Standard
+	sCfg.Optimize = newCfg.Optimize
 	sCfg.initialized = true
 }
 
@@ -320,5 +356,6 @@ func LookupConfig(kvs config.KVS, setDriveCount int) (cfg Config, err error) {
 	}
 
 	cfg.initialized = true
+	cfg.Optimize = env.Get(OptimizeEnv, kvs.Get(ClassOptimize))
 	return cfg, nil
 }