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Online data storage pricing
Remote Backup Buyer's Guide
Updated: October 2009
Pricing for online data storage is typically based on "one dollar per GB." Vendors typically allow you to backup 10 GB of data starting around $10 per month, with storage capacities going up to 1 terabyte (TB). See what other BuyerZone users have paid for online data storage services.
If a service doesn't provide unlimited data backup, they'll most likely offer tiered pricing. For example, monthly rates for 10GB are $10 to $20; 50 GB are $50 to $75; and 200 GB are $200 to $300. Prices for unlimited encrypted, incremental backups range from $3.25 monthly up to $500,000 annually! See what other BuyerZone users have paid for online data storage services.
Monthly fees for online data storage cover software installation, data center monitoring, phone and e-mail support, and training for your staff. Your rate can vary greatly depending on the amount of data you back up, how many individual servers you back up, and the number of different versions of files you need to store.
Vendors may require monthly minimums. Since you typically get deep discounts as you increase the amount of online data storage you need, it may be worth purchasing additional space. The extra money you spend now will give you more flexibility as your data needs grow, and you won't have to worry about running out of storage space.
Keep in mind that you can reduce storage costs by decreasing the amount of data that needs to be backed up. Reducing or eliminating duplicate data (or deduplication) is a key step to storing more effectively.
Besides monthly service charges, online data storage vendors may require various other fees:
- Setup and installation. Some vendors charge $50 to $100 or more for online backups, including cloud storage with deduplication, to install the software, configure your system, and troubleshoot initial problems. Expect to pay $100 to $250 or more per hour to set up very complex infrastructures requiring more experienced professionals.
- Initial backup. Unless the vendor builds it into the monthly fee, it costs about $40 to $100 to rent the backup storage device for your initial seed backup and ship it to the data center.
- License fees. The vendor may also charge a one-time license fee of $8 to $80 or more for each online data storage user, or several hundred dollars for a certain number of users. As with monthly pricing, the per user costs decrease as you increase the number of users.
- Additional services. Vendors may charge several hundred dollars for bare metal restoration to completely revert your network to the way it was before you experienced problems.
Online data storage contracts
Vendors usually require a one-to-three year contract outlining their obligations and your responsibilities - how much online data storage you get, what services you need, and how much you pay. While some vendors may allow you to work under a month-to-month agreement, you can usually get favorable discounts based on the amount of data you store if you agree to a longer-term deal.
Contracts should also detail the service level agreement (SLA.) The SLA protects your business by guaranteeing the uptime of the vendor's servers - usually 99% or greater. If their servers aren't up and running, the vendor may have to pay penalties or credit your account.
If you need to break the contract, expect to pay a 30% to 35% penalty on the remaining value.
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