Today’s businesses rely on technology to simplify their operations and increase efficiency. Cloud storage is an essential component of the technological advances businesses use daily. In fact, recent statistics show that 60% of all corporate data is now stored in the cloud with numbers projected to increase.
Businesses choose cloud storage because of its versatility, accessibility, and security. The cloud allows for connectivity across numerous devices and platforms. Multiple users can collaborate by accessing the required documents and information from anywhere with an internet connection. Data is backed up automatically as you create new or modified files. Your data is protected with encryption, access controls, and multi-factor authentication.
As the cloud becomes an essential part of business operations, many companies are asking exactly how much cloud storage should cost. Understanding pricing can help you manage your costs effectively, especially amid recession fears and economic uncertainty.
Cloud Storage Cost Factors
Did you know that 94% of companies used cloud services in 2023? Of those, 61% plan to optimize their cloud costs in the next year. Whether you are trying to optimize costs or implement cloud storage for the first time, it is important to identify how you plan to use it, what features you’re looking for, and what your budget is.
Cloud Storage Use Cases
The cloud has many uses, from simple document storage to complex data tracking. Understanding how you will use the cloud will help you select a provider that offers the necessary features without paying for infrastructure you don’t need. Common uses of the cloud include:
- File Storage: Files are automatically saved to the cloud and can be accessed, stored, or retrieved from any device with an internet connection.
- Data Analytics: Using data that is collected each day, cloud computing can provide insights into behavioral patterns to help you optimize business processes.
- Backups and Archiving: The cloud provides reliable, off-site backups for your data.
- Disaster Recovery: The cloud provides solutions for disaster recovery to preserve business continuity.
- Migrating Away from LTO and Tape: Managing a tape library is time-consuming and expensive. The cloud provides an alternative to storing data on tape.
Cloud Storage Features
While low costs are important, supplementary features can significantly affect how you conduct business. It’s worth considering the cost for features that boost security, productivity, and convenience.
Security Features
Professional providers must be able to maintain cloud storage security measures. If you need to store financial or medical records, higher security may be required. Features like server-side encryption or Object Lock will add extra protections for your data.
Data security may seem to fit under the general security umbrella, but cloud storage providers may charge for additional features that specifically focus on data security. These features can include zero-knowledge encryption, remote device lockout, AES 256 encryption, and remote wipes.
Productivity Features
Industries that use media and live streaming require faster data speeds. Faster upload and download speeds requirements often cost more. Storage capacity is the same — the more storage you require, the more it will cost. The number of users and devices could also increase prices. Integrations might incur additional costs as well. It’s important to check with your provider to see their options.
Convenience Features
Some businesses might require something more complex for their cloud solution. For this reason, the hybrid cloud and multicloud solutions exist. The hybrid cloud connects a company’s on-premises private cloud with a third-party public cloud. It is more cost-effective and works more efficiently than a private or public cloud alone. The multicloud allows an organization to use two or more clouds from different providers. You can include a mix of IaaS, PaaS, or SaaS resources and avoid vendor lock-in with a multicloud environment.
The quality of customer support is also important. If your cloud system malfunctions and you’re suddenly unable to access your data, that’s a big deal. A data storage problem can negatively affect business. Good cloud storage providers often offer expanded support tiers to cover problems that occur outside of regular business hours.
The temperature and location of the storage facility can also impact cost. Hot storage is best for data needing immediate access, while cold storage is for archiving and rarely used data. Cold storage is cheaper, but it cannot be accessed quickly as hot storage. You may need to pay more as well if you need cloud storage in a specific country or region.
Cloud Storage Price Models
After assessing your storage needs, you will need to research cloud storage pricing models to find the service that will work best for your organization. Here is an overview of commonly offered cloud storage price models.
Infrastructure-as-a-Service (IaaS)
IaaS delivers fundamental compute, network, and storage resources on a pay-as-you-go basis. This option saves businesses the costs of acquiring, managing, and maintaining their own IT infrastructure. Some advantages of this model are flexibility, scalability, and complete client control. You will only pay for the resources you use, so this is a good option for businesses with fluctuating demands.
Platform-as-a-Service (PaaS)
PaaS provides businesses with a complete cloud platform without the cost of building and maintaining that platform on-premises. This model simplifies the application development process by offering tools, libraries, and frameworks while the PaaS provider handles the underlying complexities. This model charges based on usage including the infrastructure, platform, and development tools. It is a predictable and cost-effective price model.
Software-as-a-Service (SaaS)
SaaS offers software access through a subscription, rather than having to buy and install software on individual systems. The main advantage of this model is convenience but can lack customization options. This model is best for businesses that want a ready-to-use application without maintenance.
Additional Fees
Cloud storage costs come with many variables. Besides looking at specific vendors, you should consider some common fees and cost possibilities.
- Flat or Single Tier Pricing: This approach charges the user based on storage volume, typically per gigabyte.
- Tiered Pricing: The approach offers pricing in tiers based on different services and features.
- Penalties: Some vendors have minimum retention periods, meaning you cannot delete your data for a minimum number of days or you could face extensive penalties
- Egress Fees: Egress fees are charged when users move their data out of the provider’s platform. The fees can be very high, often locking users into the services.
- Additional Fees: Ingress fees for moving data into the cloud and charges for tools like version history or immutable storage tools may exist.
The benefits of cloud computing can enhance your business with data security, increased accessibility, and enhanced collaboration. However, cloud storage services are a commitment that will affect your business for a long time. You will want to carefully select an option that not only fits your budget but offers the protection and flexibility that you need. In most cases, selecting the cheapest service will not mean that it is the best value for your money. Comparing features in conjunction with price will give you a better idea of value.
Find the Right Cloud Storage Solution with Record Nations
Finding the right cloud storage solution is easy with Record Nations. We have a nationwide network of cloud storage and service professionals to help you find reliable and secure storage at an affordable price.
Our experts will help you reduce overhead costs associated with storage infrastructure and maintenance by helping you transition to a cloud platform or optimize the services you already use. Get started today by calling us at (866) 385-3706 or filling out the form. We will contact you right away to explore your options and find the right cloud storage services for you.
