Is Cloud Storage Draining Your Budget? Here’s Why
If your business uses cloud storage to manage files and data, it may be time to take a closer look at what you’re really paying for.
Cloud storage often appears cost-effective on the surface, but many businesses are surprised to learn that a significant portion of their bill doesn’t come from the storage space itself; it comes from hidden fees. The most common offender? Egress fees.
Egress fees are charges for moving data out of your cloud provider’s environment or accessing it in specific ways. In other words, you’re paying just to use your data. Think of it like being charged whenever you open your file cabinet.
These costs aren’t small. Research shows that nearly half of cloud storage expenses can be attributed to egress and related fees, not the storage itself. That’s a major drain on IT budgets and one of the reasons so many organizations exceed their planned cloud spending.
To make matters worse, this pricing structure makes switching providers difficult. Even if you find a better option, the cost of migrating your data can outweigh the potential savings. As a result, businesses often stay locked into suboptimal solutions, not because it’s the best fit, but because it’s too costly to move.
What’s the solution? Many companies are turning to a hybrid storage model. By combining cloud storage with on-premise solutions (like local servers or owned hard drives), businesses gain more control, reduce reliance on costly egress-heavy platforms, and improve their overall flexibility.
The bottom line: Cloud storage isn’t always as straightforward or affordable as it seems. If it’s been a while since you evaluated your storage strategy and spending, now is a smart time to do it.
Yeo & Yeo Technology helps businesses identify cost-saving opportunities and develop the right-sized IT strategies—cloud, on-site, or both. If you’re unsure where to begin, our advisors can help you examine your storage use and costs more closely. Contact us.
Information used in this article was provided by our partners at MSP Marketing Edge.