According to a recent study conducted by Vanson Bourne, storage fees make up nearly half of an average user’s service bill, overshadowing the actual stored capacity. This finding highlights a concerning trend in cloud storage costs that many organizations are facing.
The study revealed that the split between storage fees and capacity billing has remained consistent over the past two years, with fees accounting for 49% of the total bill. This lack of improvement indicates a persistent challenge for users trying to manage their cloud storage expenses effectively.
One of the major issues highlighted in the study is the impact of egress and other data access fees on organizations. More than half of respondents reported experiencing IT or business delays due to these fees, which are associated with moving data out of a public cloud environment. This not only adds to the overall cost but also hampers business operations and innovation.
Budget overruns are also a growing concern, with 62% of respondents admitting to exceeding their allotted spending in 2024, compared to 53% in the previous year. The study attributes this trend to the difficulty in forecasting actual storage usage and application migration patterns, as well as higher fees for data operations.
Andrew Smith, director of strategy and market intelligence at Wasabi Technologies, emphasized the importance of controlling costs associated with cloud storage. He highlighted the need for organizations to minimize fee structures and billing models to ensure long-term business success, especially as cloud object storage usage continues to grow.
Data security remains a top priority for organizations when selecting cloud storage providers. Decision-makers focus on security fundamentals such as encryption quality, ransomware protection, and data durability when making their choices. The study found that almost all respondents had experienced data security benefits from using public cloud storage, including improved security capabilities and better data loss prevention.
Despite the emphasis on security, cold storage access remains a significant challenge for many organizations. The study revealed that organizations using low-cost “cold” storage tiers often face performance degradation and access penalties, impacting their business operations. Additionally, the frequent need to access data stored in cold tiers for active archive use cases complicates cost estimation and planning.
Overall, the study sheds light on the ongoing challenges organizations face in managing cloud storage costs and ensuring data security. As cloud storage usage continues to grow, it is crucial for businesses to address these issues and optimize their storage strategies to maximize efficiency and control expenses.