On-Prem NAS vs. Cloud NAS: Optimizing Long-Term Storage Costs

One of the biggest challenges organizations face today is balancing ever-growing data volumes with longer retention requirements without breaking the bank. Integrating cloud storage is a great solution; it can extend the lifespan of your data archives without overwhelming your IT budget, potentially saving your organization millions of dollars annually.  

Moving archival data from your on-prem Network Attached Storage (NAS) to cloud NAS in a hybrid environment can help you implement cost-effective data management strategies for the long run, while avoiding the hidden fees that make all the difference in truly optimizing your bottom line. 

Match your infrastructure with your unique requirements 

Organizations, and even different departments within the same organization, often have vastly different uses for their stored data. Marketing teams want historical customer data for trend analysis; developers need extended access to logs; and product teams are experimenting with AI workloads that rely on vast datasets. In addition, a wide range of industries are subject to regulations that mandate specific data retention periods and accessibility requirements, such as the Health Insurance Portability and Accountability Act (HIPPA), General Data Protection Regulation (GDPR & EU GDPR), and SEC Rule 17a-4 (a U.S. Securities and Exchange Commission rule governing electronic recordkeeping for financial services). 

On-prem storage solutions struggle to meet all of these varying demands due to limited capacity, high cost, and long-term archive management complexity. As a result, storage admins are bogged down managing multiple tiers and developing data retention policies instead of addressing the storage infrastructure itself.  

With a hybrid storage model, your organization can extend on-prem infrastructure with cloud-based object storage. Benefits include:  

• Alignment with retention mandates 

• Simplified data management 

• Cutting costs and streamlined IT budgets 

Platforms like Wasabi Cloud NAS that move inactive data off on-prem devices and into the cloud allow organizations to create a low-cost, highly available landing zone for infrequently accessed data. When you offload cold data from expensive, high-performance NAS systems, you can preserve local capacity for active workloads while still meeting retention needs. 

On-prem NAS is too expensive for long-term data retention 

On-prem NAS systems are optimized for performance, not archives, and definitely don’t scale well or align with modern compliance and data growth demands. Keeping cold and even warm data in expensive, on-prem hardware, even temporarily, is inefficient because of the following: 

• High cost per terabyte — NAS devices are designed for performance and fast access, not for cost-efficient cold data storage. Every additional terabyte of on-prem capacity adds significant expenses due to premium enterprise-grade hardware, power, cooling, and physical space requirements, and maintenance and support contracts. 

• Wasted performance on inactive data — Long-term (cold) data is rarely accessed, yet it occupies space on high-performance storage designed for frequent I/O and critical workloads. 

• Scalability challenges — Growth is unpredictable. On-prem NAS appliances don’t scale easily or economically. Expanding capacity often requires new hardware, downtime for installation, and added configuration complexity.  

• Administrative overhead — Managing data across aging hardware, backups, replication, and retention policies adds ongoing labor costs. Storage admins spend time micromanaging storage hardware that could be offloaded to a reliable, third-party cloud provider. 

• Limited redundancy and durability — On-prem NAS systems typically rely on local Redundant Array of Independent Disks (RAID) or full system backups. Cloud object storage offers inherently higher durability (99.999999999% durability) and opportunities for redundancy across geographical regions. 

• Vendor lock-in – Taking data from one platform to another between different NAS systems can seem virtually off the table for most organizations past a certain point of investment due to the labor-intensive, error-prone, and disruptive process it entails. 

A hybrid approach that offloads inactive data from NAS systems to the cloud is far more sustainable. 

Simplify policy-based retention with hybrid storage 

A hybrid storage architecture combines the strengths of on-prem infrastructure with the scalability and affordability of the cloud. Organizations can continue to use their existing NAS or file servers for active workloads while tiering less frequently accessed data to cloud object storage.  

This creates an active archive, a repository of data that sits between hot and cold storage. The data is not accessed as frequently as hot storage and does not require the lowest latency levels, but it is still immediately available to call up at any point. 

The transition between on-prem and object storage is managed through software that applies policy-based rules, automatically moving files based on age, usage patterns, file type, or business-specific criteria. This configuration reduces the strain on primary storage and simplifies long-term data retention and management without manual intervention. 

Hyperscalers like AWS, Azure, and GCS offer archival tiers for long-term storage at a very low cost per terabyte. However, these services often come with hidden costs such as high egress fees, charges for API requests, and penalties for early deletion. These fees can significantly increase the Total Cost of Ownership (TCO) over time. As detailed in our TCO eBook, these additional expenses can erode the value of low per-GB pricing and complicate budget planning for long-term retention. 

The no-fees difference in your bottom line 

Wasabi offers a radically different approach to cloud storage pricing and performance, making it an ideal solution for archival workloads. Unlike traditional cloud providers, Wasabi charges no egress or API request fees, allowing organizations to access and manage their data without the surprise of unexpected costs. Combined with high availability and strong durability, Wasabi delivers performance that meets the needs of modern enterprises, especially those managing growing data volumes on premises. 

Security is also a key part of what makes Wasabi a value-add to users. Features like immutable buckets, role-based access controls, and stringent safety certifications help ensure that archived data is safe from unauthorized changes or ransomware threats. For organizations looking to tier data seamlessly, Wasabi Cloud NAS provides an easy-to-deploy solution that integrates with existing file systems. It automatically identifies and tiers files to the cloud while preserving full file access and metadata locally, giving users the feel of local storage with the economics of the cloud. 

From compliance to cost control: tier smarter with Wasabi Cloud NAS 

Long-term data retention doesn’t have to come at the expense of performance, cost, or compliance. With Wasabi Cloud NAS, your organization can simplify hybrid storage, cut costs, and ensure easy access to archival data. Whether you’re looking to offload old files, meet retention policies, or create a more scalable storage architecture, Wasabi Cloud NAS makes it easy to take the next step.