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 information from anywhere with an internet connection. Data is backed up automatically as you create new or modified files. Your files are 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.
How Will You Use Cloud Storage?
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 first evaluate your storage needs.
Uses of the Cloud
The cloud has many uses from simple data 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 are:
- 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/Tape – Managing a tape library is time-consuming and expensive. The cloud provides an alternative to storing data on tape.
Cloud Storage Costs
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.
- Data storage capacity – The more storage you require, the more it will cost. The number of users and devices could also increase prices.
- Data Security – Cloud storage providers may charge for additional security features including zero-knowledge encryption, remote device lockout, AES 256 encryption, and remote wipes.
- Hot and Cold Storage – Hot storage is best for data needing immediate access. Cold storage is for archiving and rarely used data. Cold storage is cheaper but cannot be accessed quickly.
- Storage Location – Storage location can affect cloud prices. You may need to pay more if you need cloud storage in a specific country or region.
- 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.
Cloud Features
While low costs are important, supplementary features can significantly affect how you conduct business. You may consider paying more for features that boost security, productivity, and convenience.
- Security Options – All businesses need data security measures to maintain privacy. If you handle 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 Speed – Industries that use media and live streaming require faster data speeds. Faster upload and download speeds often cost more.
- Customer Support – A data storage problem can negatively affect business. Cloud storage providers often offer expanded support tiers to cover problems that occur outside of regular business hours.
- Partner Integration – Partner integrations may be available with services you already use. Check with your provider to see their options.
- Hybrid Cloud – This computing environment 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.
- Multicloud – 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.
Common Price Models for Cloud Storage
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.
Finding the Right Cloud Storage Pricing
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.
The benefits of cloud computing will enhance your business with data security, increased accessibility, and enhanced collaboration.
Connect with Cloud Storage Providers 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.
