Cloud Storage vs Local Storage Cost: Everything You Need to Know
Although the importance and growth of cloud storage is rapidly increasing, local storage may still have its place for personal or business use, as it still offers some advantages over cloud storage.
Many consider the deciding factor for their storage solution to be cost. For this reason, we will explore cloud storage vs local storage cost throughout this article, among other features which could save money, (or increase costs), based on comparing these two storage models.
Cloud storage vs local storage cost, which is more cost effective?
Deciding whether local or cloud storage will depend on the initial payment, but there are also other factors relating to this initial purchase to consider.
Initial costs
Local storage has the benefit of being a one-time investment to store your files. Local storage includes USBs, external hard drives, SSDs, or network-attached systems (NAS).
Depending on the storage you need, whether you're considering RAM vs storage, and the brand, costs can range from €25 for a 256GB USB, and between €130 up to €3,659 for NAS systems.
Long-term cost
Cloud storage offers free plans, so this is the best option if you don’t need a lot of storage. Many cloud providers offer monthly or annual subscriptions, which may become more expensive over time compared to local storage.
If you need a petabyte of storage or more, then the best option is object storage, offering a fully scalable and more affordable alternative to on-premises storage.
On the other hand, you can get the same investment with some cloud providers with lifetime plans. Internxt, for example, offers lifetime plans of 1TB, 3TB and 5TB with the option to get up to 100TB with StackSocial plans, but these do not include extra features of Internxt.
These include additional features not available with local storage. Internxt cloud storage plans offer post-quantum encryption, backups, and GDPR compliance.
They also include a VPN and Antivirus, which can save you from paying additional subscription costs from other companies.
| Plan | Storage | Features | Annual (Paid monthly) | Lifetime Cost |
|---|---|---|---|---|
| Essential | 1TB | €1.99/month | €380 | |
| Premium | 3TB |
|
€3.99/month | €580 |
| Ultimate | 5TB |
|
€5.99/month | €780 |
| *Prices are correct at the time of writing and are subject to change. For latest prices, check https://internxt.com/pricing | ||||
Cost per GB
Local storage cost is generally lower over time compared to cloud storage.
A 4TB external hard drive from WD costs around €120, translating to about €0.03 per GB, while a cloud storage plan results in a much higher cost per GB over several years depending on the cloud storage pricing options.
However, cloud storage includes features that justify the cost, such as end-to-end encryption, file sharing, backups, and more.
Which should you choose?
If cost is the only factor, local storage wins in the long run. However, if convenience, security, and accessibility matter, cloud storage justifies its cost.
Local storage may have the advantage of cost. Still, it’s essential to consider the many benefits of cloud storage over local storage, which in the long run, could save you significant amounts in the future.
If you're interested in cloud storage, we also cover the best cloud storage deals for you to start storing your files online at an affordable cost, with other features available for the best value for your money.
Cloud storage vs local storage cost, security, accessibility, and more
Once the initial cost is paid for, there may be further costs for local storage as you scale or upgrade your storage system. Cloud storage can increase your savings further in this regard, as it helps avoid unnecessary expenses in the following areas.
Performance
Uploading files to the cloud depends on your internet speed and the location of servers. As Internxt has servers globally, you will not see too much impact on speed and performance, so costs related to potential downtimes will be significantly reduced.
As local storage is accessed directly on your Mac or PC storage, relying on an internet connection is not an issue. On the other hand, files are only available on that specific device unless you manually transfer or set them up with a network, which can be inconvenient for remote data access.
Security
Cloud storage offers total built-in security, as your files are end-to-end encrypted and protected from hackers. Backups also provide additional protection for your files, as you can protect them from data loss and ransomware.
Internxt offers post-quantum and zero-knowledge encryption for all plans, so the encryption keys are managed directly on your device and inaccessible to everyone but you.
While you can set up local storage with encryption and backups, this must be done manually, making it more challenging to maintain and manage.
Compliance
Cloud storage vs local storage cost goes beyond the price of the service, as meeting compliance regulations is necessary for all businesses. Without it, they could face thousands of compliance fines, reputation loss, and customers.
Cloud storage providers have built-in compliance features with laws such as the GDPR and CCPA. As they are responsible for meeting regulatory requirements, saving businesses time and resources.
In contrast, local storage gives businesses control over compliance, but it requires significant effort to manage and ensure that data storage meets these regulations.
Disaster recovery
Cloud storage provides built-in diasaster recovery with automated backups and data redundancy, ensuring data is protected and accessible from multiple locations.
This reduces the risk of data loss from server failure or natural disasters to help businesses recover quickly, often at a fraction of the cost and effort compared to managing local storage.
Cloud storage costs
Here is a general overview of cloud storage costs for different storage providers, models, and additional services.
If you're interested in finding the best cloud storage deal, check out our article below to get the best cloud storage for your privacy, plus VPN, Antivirus, and more.
Subscriptions
First, let’s take a look at the annual plans of one of the most popular cloud providers, Google Drive.
Google’s basic plan includes 100GB of cloud storage for €19.99, and 2TB for €99.99.
Internxt provides better value for money, more storage, and more privacy thanks to its zero-knowledge encryption, meaning you could save up to 80% by choosing Internxt.
If you want to spread the cost of your lifetime plan into 3 easy payments, you can pay with Internxt using Klarna to gain all the advantages of a lifetime plan broken down into monthly payments that suit you.
Lifetime plans
If you’re looking for a one-time investment when considering cloud storage vs local storage cost, then a lifetime cloud storage plan will give you access to cloud storage forever, and additional services.
You can get extra features for more advanced file management with cloud storage that’s not so easily accessible with local storage, such as encryption, backups, and file sharing.
With Internxt lifetime plans, you get all the features of Internxt on top of lifetime cloud storage without paying for a recurring subscription.
By investing in Internxt, you not only invest in lifetime access to your files, which are backed up and protected by the best encryption, but you also get access to a privacy suite that protects you from hackers, malware, and ransomware.
Pay-as-you-go
Another option is a pay-as-you-go pricing model, although this is a more typical subscription for S3 storage pricing plan. Let's look at AWS, Azure, and Google Cloud's pricing models.
- AWS: Charges approximately $0.023 per GB for the first 50 TB per month.
- Azure: Begins at approximately $0.0184 per GB for the first 50 TB per month.
- Google Cloud Storage: Priced at about $0.02 per GB for the first 50 TB per month.
This does not include the additional fees for added features or data transfers, which can raise the cost of your storage plans significantly.
Internxt S3
Another S3 object storage solution is included from Internxt. Internxt offers S3 storage at a fixed price of €7/TB/month so you can upgrade at anytime if your cloud storage is full. By calculating this cost in comparison to other services, we can see:
1TB = 1,000GB
Cost per GB = €7 / 1,000GB = €0.007 per GB per month, which works out cheaper than other hyperscalers.
Therefore, if your business needs to manage large-scale data without the costs of other providers or local storage, then Internxt S3 is a valuable option to consider.
Local storage costs
These are what you can expect to pay for if you choose a local storage model to manage your files.
Hardware
Investing in hardware for local storage comes with many challenges for businesses, especially if they don’t have a team of experts to monitor and maintain these systems.
For example, servers are an essential aspect of managing and storing data, servers can vary significantly in cost based on specifications and requirements. Factors such as CPU, bandwidth, disk space, memory, and measures such as DDoS protection also have to be considered.
Power and cooling
On top of the equipment costs, servers and data centers require a huge amount of power to function and require cooling systems to prevent overheating, adding to operational expenses.
Maintenance and replacement
Regular maintenance is required for both, ensuring there is no server downtime, documenting security protocols, updating software, and keeping business operations running smoothly, adding even more operational costs.
Costs for scalability
Finally, as your data and storage needs grow, more storage means more servers, taking up more space and costing more money. During this process, businesses may also face data loss or corruption if the upgrade to the storage is not managed effectively.
Cloud storage vs local storage cost, and which is right for your business
Now we have examined cloud storage vs local storage cost in more detail, here are some options for your business and team to consider when choosing the right cloud storage to manage your data.
Hybrid
If the cost of maintaining and dedicating your storage provider to local storage seems like too much work and outside of your budget, then one option is hybrid cloud storage.
As the name shows, hybrid cloud storage combines local and cloud storage solutions, offering the benefits of quick access to less critical data from the public cloud, and managing confidential data in the local cloud.
Hybrid cloud storage will still require the maintenance for the local storage side, but it may be significantly cheaper than relying solely on a local cloud storage model.
Cloud storage vs local storage cost summary
Below is a summary of all the details regarding cloud storage vs local storage cost as explored in this article for you to refer to when considering your cloud storage for personal or business needs.
| Cost Factor | Cloud Storage | Local Storage |
|---|---|---|
| Initial Investment | Low (subscription or pay-as-you-go) | High (hardware purchase) |
| Ongoing Storage Costs | Based on data volume and pricing plans | One-time hardware cost |
| Data Transfer Costs | May charge extra for some services | No transfer costs (local access) |
| Maintenance & Replacement | Included | Additional costs |
| Scalability | Highly scalable (pay for what you use) | Requires additional hardware investment |
| Data Redundancy & Backup | Included | Additional hardware/software costs |
| Geographic Distribution | Cost-effective for distributed access | Requires data replication across locations |
| Energy & Cooling | Included | Additional costs for power and cooling |
As more and more businesses are switching to a cloud storage model, it’s crucial that you or your business plan for this effectively, whether locally or in the cloud. If you choose the cloud, Internxt supports your storage needs with our private cloud service, and other products.
Get started with Internxt by visiting our website and choose your personal plan, or contact our sales team from our website to find out how we can help increase your business security with Internxt S3.
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Nathan James Turner
Nathan James Turner
Nathan James Turner
Frequently asked questions
FAQ: Local vs Cloud Storage Cost
Is local storage cheaper than cloud storage?
Yes, local storage is usually cheaper upfront because you pay once for hardware like hard drives or NAS devices. However, long-term costs can rise due to maintenance, upgrades, and replacements.
Is cloud storage cheaper in the long run?
It depends on how much you store. For small to medium usage, cloud storage can be affordable. For large-scale or long-term storage, ongoing subscription fees can become more expensive than local storage.
What are the hidden costs of local storage?
Local storage can include costs for hardware replacement, electricity, backups, maintenance, and potential data recovery if a drive fails.
What are the hidden costs of cloud storage?
Cloud storage may include data transfer fees, higher pricing for faster access tiers, subscription increases, and extra charges for backups or advanced features.
However, if you choose an enterprise cloud storage solution like Internxt S3 object storage, you pay a flat fee of €7/TB/month, with no additional data transfer fees.
Which is more cost-effective for businesses: cloud or local storage?
Small businesses often prefer cloud storage due to low upfront costs and scalability. Larger organizations with predictable storage needs may save more using local or hybrid systems.
Does cloud storage get more expensive as you store more data?
Yes. Most providers charge based on storage volume and sometimes data access, so costs increase as your data grows.
Is local storage a one-time payment?
Not entirely. While hardware is a one-time purchase, you still need to pay for maintenance, backups, power usage, and eventual replacements.
Which is better for long-term storage cost?
For large amounts of rarely accessed data, local storage is often cheaper long-term. Cloud storage is better for flexibility and remote access.
Can I combine local and cloud storage to save money?
Yes. Many users use a hybrid setup, local storage for active files and cloud storage for backups or infrequently used data.
Why is cloud storage more expensive per GB than local storage?
Because cloud pricing includes infrastructure, security, redundancy, maintenance, and global access, not just raw storage space.