Beware: Hidden Fees Ahead

Companies are increasingly migrating their on-premises storage to cloud systems while more and more have eschewed physical storage all together for a cloud-first approach. But while the benefits of cloud object storage pile up, so too do the fees. Cloud storage pricing is the thunderstorm waiting to rain all over an IT manager’s cloud infrastructure budget.  

In today’s digital-first world, data enables a wealth of transformative opportunities. From backup and recovery and archiving to data testing and analytics, cloud storage’s increased agility and scalability lets companies respond quickly and efficiently to changing needs without investing in new hardware infrastructure.  

But managing increasingly data-hungry applications with legacy storage systems is expensive. Cloud storage has become a critical part of an enterprise’s IT infrastructure—so the need for reliably performing systems with budget-friendly cloud storage pricing is paramount. 

Cloud Object Storage Benefits

Cloud object storage is a way to efficiently store, access and manage the massive amounts of data that are uploaded to cloud systems. By storing data as objects with unique identifiers and metadata, cloud storage systems become more robust and resilient, offering companies greater insight into how they’re using data. Cloud object storage offers: 

• Improved security: Security features, such as encryption, access control, business continuity and disaster recovery, help businesses protect their data from ransomware attacks, unauthorized access, theft, or loss. 

• Enhanced collaboration: Businesses have more flexibility to share media and other massive files, improving communication and productivity. 

• Simplified IT management: The burden of managing storage infrastructure shifts to the cloud provider, freeing up IT resources to focus on key business tasks and goals. 

Paying for cloud storage isn’t as straightforward, however. Imagine if, on top of your monthly subscription, your favorite streaming service charged you each time you paused a show, skipped a scene or jumped to an earlier moment. Or if, after paying an overhead luggage charge, airlines added fees when you opened the bin and retrieved an item from your bag during the flight. Now consider how cloud storage pricing models are structured with similar service fees. 

How Cloud Storage Pricing Works

Pricing for cloud storage takes several components into account, such as the amount of data stored, the location of the data, and the type of access—“hot” data that needs to be accessed routinely, “cold” archival data that must be stored for compliance but doesn’t need to be touched, and “cool” active archive data that needs to be keep close by but won’t be retrieved frequently.  

Cloud storage companies typically offer a monthly subscription charge per gigabyte of data, plus additional fees for data transfer, API calls, and data retrieval and egress. IT managers should break down their understanding of each fee before deciding on a cloud storage partner. 

Leading public cloud storage vendors such as Amazon S3, Google Cloud Platform and Microsoft Azure offer complex tiered data storage subscriptions that grow increasingly more expensive. Each tier offers varying levels of availability and performance, with the more expensive storage classes providing more speed, greater performance and availability. Plus they include charges for retrieving that data, known as a data egress fee. For companies that need to frequently access their data, massive egress fees can eat up IT budgets. 

In addition, companies are charged for each API call. That means a fee for every data object or file that you retrieve, move, save and/or copy in your daily operations. Since these activities vary depending on your needs, companies struggle to predict or control API call fees, which can quickly burn budget as well.  

Sticker Shock: Unpredictable Cloud Storage Costs

In fact, transaction fees are the primary reason companies went over their storage budgets, according to the 2023 Wasabi Cloud Index.  

Respondents to the index said storage services fees account for 48% of total cloud storage bills on average, with 52% of organizations saying they exceeded their budgeted cloud storage spending in 2022.  

Three out of the top four reasons for overspending were fee-related, and it went far beyond egress fees. The daily data fees for operations, retrieval and API calls all cost companies much more than they expected. 

Egress fees and API requests are difficult to budget for. You’ll never know exactly how many you’ll incur in a month, which makes cloud object storage bills from hyperscalers difficult to predict. Of the Wasabi Cloud Index respondents, 80% said they currently struggle with cloud storage billing and how to plan data migrations or respond to unplanned downtime. More than half the organizations use more than one public cloud storage provider and face difficulty ensuring storage features consistency across clouds.    

That said, cloud storage investments are only going to increase. Datasets are expected to grow 300% over the next three years, and the need for more efficient approaches to cloud storage will be key. This makes clearcut cloud storage pricing even more crucial to efficient data use. 

Simple, Affordable Hot Cloud Storage from Wasabi 

There’s a solution to prohibitive cloud storage pricing. Wasabi Hot Cloud Storage is a single tier of highly secure, low-latency storage that’s as fast as the hyperscalers’ most expensive frequent-access tiers. And unlike Amazon S3, Google Cloud Platform, and Microsoft Azure, Wasabi does not charge for egress or API requests. It’s 100% compatible with AWS S3 and IAM APIs, serving as an ideal addition to a multi-cloud strategy, too. 

Priced at a flat rate per GB/month, Wasabi’s pay-as-you-go cloud object storage is a fraction of the cost of the other enterprise cloud storage providers, offering a better solution for companies that need greater control over spending and deeper insight into how they use their data.  

For even greater predictability, Wasabi’s reserved capacity storage pricing model lets you purchase storage capacity up front for a period of 1, 3 or 5 years. RCS can significantly reduce your storage costs up to 27% on pay-as-you-go prices. With RCS, pay only for storage that is reserved. Regardless which pricing model you choose, you receive the same enterprise-class, high-performance cloud object storage with no fees for egress or API requests and no complex storage tiers. 

Our high-performing, robust and easy-to-use solutions come with secure, compliant features that have been a game changer for what companies across industries can do with their data, from transferring petabytes of video footage across the globe to maintaining decades’ worth of sensitive information that can be retrieved on demand. Business continuity and stringent security measures are crucial for protection against ransomware attacks, as well. 

Wasabi has helped transform companies that need reliable data storage, archival, and backup and recovery while helping them remain focused on their top business priorities. Recognized as one of technology's fastest-growing and most visionary companies, Wasabi enables organizations with straightforward pricing that delivers predictable costs and boosts performance.  

Unpredictable cloud storage pricing with service fees for egress and API calls can wreak havoc on your IT budget. Take back control with Wasabi’s cost-friendly cloud object storage solutions and transform your data management needs.