Is Cloud Storage Over-the-Top Too Expensive?

Published: Jul 18, 2011
Updated: Feb 2, 2021
1 minute read
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Is cloud storage, which appears to be a bargain off the top, overly expensive when compared to buying your own drive and keeping everything on your desk? It certainly looks that way.

For example, you can now buy portable disk drives holding 2TB of storage (2,000GB!) for under $100 — in fact, there are some that can cost as low as $75. Craziness, but that’s the market right now.

On the other hand, Amazon.com‘s S3 service charges 12.5 cents per-GB/month for its cloud storage. Using that figure, a customer who wants to store 2TB in the cloud for three years would pay about $4,500, or $2.19 per gigabyte.

For a consumer or VSB (very small business), that might be inordinately expensive. For an enterprise, however, that is a huge bargain, when compared to the cost of maintaining servers, arrays, switches, et cetera in a data center.

Of course, there are many pros and cons to each type of storage. We don’t need to list them here.

In any case, one of my colleagues, Frank J. Ohlhorst, decided to take a close look at the math involved with the economies of scale, and he came up with a noteworthy article on it.

You can check out Frank’s perspective here at eWEEK’s Smarter Technology section.

Chris Preimesberger

Chris J. Preimesberger is Editor Emeritus of eWEEK. In his 16 years and more than 5,000 articles at eWEEK, he distinguished himself in reporting and analysis of the business use of new-gen IT in a variety of sectors, including cloud computing, data center systems, storage, edge systems, security and others. In February 2017 and September 2018, Chris was named among the 250 most influential business journalists in the world (https://richtopia.com/inspirational-people/top-250-business-journalists/) by Richtopia, a UK research firm that used analytics to compile the ranking. He has won several national and regional awards for his work, including a 2011 Folio Award for a profile (https://www.eweek.com/cloud/marc-benioff-trend-seer-and-business-socialist/) of Salesforce founder/CEO Marc Benioff--the only time he has entered the competition. Previously, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. He has been a stringer for the Associated Press since 1983 and resides in Silicon Valley.

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