Deciphering Cloud Cost Economics: A Data Protection Perspective

Deciphering Cloud Cost Economics: A Data Protection Perspective

Cloud cost economics are complex and difficult to decipher. There is some truth behind the joke that one needs a PhD in order to decipher cloud billing. With this in mind, cost economics is the overall topic that we will explore in this blog, which is the last in a four-part series that discusses the tradeoffs between on- and off-premises data protection.

From a cost perspective, the biggest draw for off-premises is typically the ability to bypass large capex purchases for both hardware infrastructure and software licenses. Of course, there are some exceptions in some instances, but the need is at least mitigated.

Beyond allowing the organization to move to an opex model, the cloud offers scalability and flexibility. Compute and storage resources can be spun up and down dynamically as business requirements evolve. This is simply not possible on-premises, due to the staff resources and capex that would be required. It is because of the scalability and flexibility that the cloud offers a potentially great option for disaster recovery – which we touched on in the previous blog in this series, which covered security and cyber-resiliency tradeoffs between on- and off-premises data protection environments.

Of course, it is important to remember that data has gravity and it is difficult to move once stored, so enterprises may still need to live with their storage architecture decisions for a long time in the cloud, just like on-premises. With that in mind, it is important to utilize the lowest-cost tier of storage that meets requirements in the cloud, and to avoid storing redundant or obsolete data. This is not easy considering the effects of shadow IT and data sprawl, and how difficult it is to obtain visibility across multi-hybrid cloud environments. Our previously published Technical Insight report, Data Protection Cost Considerations, touches on these and other key data protection-related cost factors, such as software licensing, in more detail.

Also contributing to data gravity and murky cloud storage cost structures are data egress fees, which can very quickly become prohibitively expensive. When it comes to data protection, this means potentially costly data recovery and migration operations, depending on the storage targets that the data is being moved from and to. To address this issue, some backup-as-a-service providers include egress fees as a part of their pricing, or architect their offering to help avoid data egress.

We explored in the second blog in this series how migrating operations off-premises/to the cloud also is intended to reduce the hours that backup administrators spend on routine, day-to-day tasks. In turn, this should net cost savings. However, it is important for the enterprise to also bear in mind other new roles, such as cloud architects, that might become necessary.

The cost structure is just one of many complex considerations to decipher and consider when deciding if it is appropriate to migrate data protection operations to the cloud. This blog series breaks down efficiency of daily operations and security and cyber-resiliency – in addition to cost dynamics – because we find these areas to be the ones that are typically most impactful for IT teams when determining where to deploy their data protection implementations. However, each business is different and will have its own unique set of requirements to bear in mind and prioritize accordingly.

Disclosure: The Futurum Group is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.

Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of The Futurum Group as a whole.

Other insights from The Futurum Group:

How to Migrate Data Protection to the Cloud and Not Regret It

Streamlining Operations with Cloud Data Protection

Embracing Data Protection-as-a-Service Without Sacrificing Cyber-Resiliency

Related Insights
The Data Foundation Problem: Why "Bring AI to Your Data" Beats the AI Data Lake
August 3, 2026

The Data Foundation Problem: Why “Bring AI to Your Data” Beats the AI Data Lake

OpenText's Waqas Ahmed and Futurum's Keith Kirkpatrick on why the fastest AI pilots fail for a data-governance reason nobody names in the demo. From Utilizing AI, "Trusted Data Foundations for...
Ingram Micro Q2 FY 2026: Xvantage Strengthens the AI Distribution Model
August 3, 2026

Ingram Micro Q2 FY 2026: Xvantage Strengthens the AI Distribution Model

Futurum Research analyzes Ingram Micro’s Q2 FY 2026 earnings, focusing on AI infrastructure, cloud growth, Xvantage adoption, and channel consolidation....
Equinix Q2 FY 2026: Enterprise AI Fuels the Next Phase of Data Center Growth
August 3, 2026

Equinix Q2 FY 2026: Enterprise AI Fuels the Next Phase of Data Center Growth

Futurum Research analyzes Equinix Q2 FY 2026 earnings, focusing on AI infrastructure demand, interconnection growth, capacity expansion, and raised guidance....
Are Enterprises Ignoring Two-Thirds of Their AI Security Risks?
August 3, 2026

Are Enterprises Ignoring Two-Thirds of Their AI Security Risks?

Snyk's 2026 report reveals enterprises can identify only one-third of their AI attack surface, while agentic AI adoption has nearly doubled—leaving security governance dangerously behind....
N-able's Security Vulnerability Exposes Critical Risks for Legacy Systems
August 3, 2026

N-able’s Security Vulnerability Exposes Critical Risks for Legacy Systems

N-able's N-central breach exposes critical gaps in Software Lifecycle Engineering practices, underscoring the urgent need for robust patch governance and automated security testing across MSP platforms....
OPSWAT Enhances Metascan™ with BKAV Pro: A Major shift for Linux Security?
August 3, 2026

OPSWAT Enhances Metascan™ with BKAV Pro: A Major shift for Linux Security?

OPSWAT integrates BKAV Pro into Metascan Multiscanning Linux packages, expanding threat detection capabilities across 5-engine and 10-engine tiers as enterprise supply chain security investments accelerate....

Book a Demo

Welcome

The vision behind everything in Futurum’s Custom Research practice is this: research should show you what is happening, what comes next, and what to do about it. It should be personal to each audience, easy for people to grasp, and structured so LLMs can reason over it accurately. And it should be fast and turnkey; you want answers now, not another project to carry for quarters.

Whether you are defining business, channel, or go-to-market strategy; evaluating vendors or justifying ROI; or commissioning research to fill an emerging market need, we have your back, with a program that answers your questions with the objectivity and credibility to drive real decisions.

To do it, we bring unmatched data to bear: Futurum research, surveys, and market projections; validated market feeds; ETR’s 15 years of insight from 10,000 technology decision-makers; G2’s buyer and user data; and what our analysts hear every day. Add leading primary collection, from AI-moderated voice interviews to surveys and analyst-led interviews, all turnkey, and every project comes out credible, nuanced, and actionable.

And we don’t just drop the results in your lap. For internal work, we provide analyst-led sessions, interactive dashboards, and a range of formats. For market-facing work, Futurum delivers turnkey activation and amplification that actually gets seen, by people and by LLMs, through our media and share of voice. This is research that moves decisions and markets.

We will meet you wherever you are, from a fast-turn brief to a multi-year program, and shape the work to your goals, timeline, and budget. The right program for your moment.

If any of this is useful, I would love to talk.

Benjamin Brown, VP Custom Research, Futurum Research

Benjamin Brown

VP, Custom Research · The Futurum Group

Newsletter Sign-up Form

Get important insights straight to your inbox, receive first looks at eBooks, exclusive event invitations, custom content, and more. We promise not to spam you or sell your name to anyone. You can always unsubscribe at any time.

All fields are required






Thank you, we received your request, a member of our team will be in contact with you.