The public cloud continues to grow unabated. Still, only about 30% of enterprises have moved significant amounts of data to the cloud. Certainly, there\u2019s a percentage of workloads that may never be right for the cloud, but if \u201ccloud economics\u201d also apply to cloud storage, more enterprises would have already migrated massive amounts of data off expensive in-house storage. So, what\u2019s going on?\r\nThe real cost of cloud storage\r\nAccording to Amazon\u2019s AWS pricing calculator, the cost to store 10 TB of data in Amazon S3 is $235.52 per month. If you access only 10% of that data every month, it will cost you an additional $92.07 per month for a total monthly payment of $327.59. That\u2019s $32.76 per TB per month for S3 storage.\r\n\r\nAmazon and other cloud vendors will also charge for PUT, GET, POST, and other API calls. These can often add another 20-30% to your monthly storage bill. For the sake of simplicity, we\u2019ll stick with the extremely conservative estimate of $32.76 per TB per month for S3 storage.\r\nWhat does 1 TB of on-premises storage cost?\r\nTo compare the cost of Amazon S3 vs. on-premises storage, we need to calculate the cost to store 1 TB of data in-house for one month. Let\u2019s use the market leader Dell EMC as an example:\r\n\r\nCapital costs for a 1-petabyte (PB) storage system, such as the Dell EMC Unity 400, is about $500,000 amortized over five years. The maintenance contract to support that system is 20% of the purchase price per year\u2014so another $500,000 for support over the same five-year period.\r\n\r\nIn addition to your storage arrays, you\u2019ll also be spending money on switches, servers, cable plant, and management software. In total, expect to pay about $50,000 plus another $10,000 in maintenance annually.\r\nDon\u2019t forget the space, power, and people\r\nPower and cooling costs run an average of $1,200 per square foot per year. A 1 PB system will take up at least two racks, so figure about 20 square feet or roughly $24,000 per year.\r\n\r\nYou also have to pay the salaries of the people that manage your data center. Running 1 PB of on-premises storage will require at least the part-time work of a storage architect, systems administrator, and an IT manager. As a rule of thumb, 1 PB of on-premises storage requires the equivalent of one headcount to manage. We can conservatively estimate an additional $150,000 per year for the personnel required to manage the system.\r\n\r\n \r\n1 PB of On-Premises Storage (Five-Year Cost)\r\n \r\n\r\n\r\n\r\nStorage hardware (amortized over 5 years)\r\n$500,000\r\n\r\n\r\nAnnual Maintenance\r\n$500,000\r\n\r\n\r\nAncillary hardware\/software\r\n$50,000\r\n\r\n\r\nAncillary maintenance\r\n$50,000\r\n\r\n\r\nPower and cooling\r\n$120,000\r\n\r\n\r\nHeadcount\r\n$750,000\r\n\r\n\r\nTotal\r\n$1,970,000\r\n\r\n\r\n\r\n \r\nWe need a little more math to determine cost per TB per month:\r\n(Five years = 60 months)\r\n$1,970,000 \u00f7 60 months = $32,833 per PB per month\r\n(One petabyte = 1024 terabytes)\r\n$32,833 \u00f7 1024 = $32.06 per TB per month\r\n \r\n\r\nConclusion: At $32.06 per TB for on-premises vs. $32.76* per TB for S3 (*does not include costs for API calls, Internet bandwidth, or an AWS-certified architect), there is no financial incentive to migrate to public cloud storage.\r\n\r\nUntil now.\r\n\r\n \r\nHow Wasabi is Changing the Game\r\nIf you know anything about our cloud storage pricing, then you know Wasabi is 80% cheaper than Amazon S3 and exponentially faster. Keeping with our example above, at only $5.99 per TB per month (with no additional fees). Storing 1 PB of data for five years in Wasabi would cost you less than $360,000. That\u2019s about 20% the cost of storing the same 1 PB of data in on-premises storage.\r\n\r\nTo be fair, you still need technical staff to manage your cloud storage, but certainly not as many. Your total savings will still be in the neighborhood of 75-80%. That is a game changer. Suddenly, the economic advantage of moving your data to the cloud is highly compelling.\r\n\r\nBeyond price, we know that complexity and the inability to predict total monthly costs also inhibits migration to cloud storage. That\u2019s why we don\u2019t charge for egress, API calls, or anything else. There\u2019s only one line-item on your monthly bill and that is for storage used. So, you can predict your storage costs to the penny.\r\nPerformance anxiety?\r\nFor those concerned with taking a \u201cperformance hit\u201d by migrating to the public cloud, consider this: If you have a 10 Gbps link to the Internet and your latency to either our Virginia or Oregon data centers is less than 20ms, you can expect to transfer data at a rate that will saturate your 10 Gbps link. Compare that with the Dell EMC speed of roughly 120 Mbps and Wasabi should be 6-8 times faster.\r\n\r\nFor more information on how you can reduce the cost and complexity of data storage, download our new white paper: Wasabi Eliminates On-Premises Storage Cost and Management Barriers.