Assume that an organization wants to store non-structured user data (documents, spreadsheets, etc.) in the cloud, starting with a 5 TB footprint
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in the first month. They will perform reads on 5% of the data per
month, and writes on 3% of the data per month.
The growth rate of the data footprint in the cloud is expected to be 2% per month (these rates have been conveniently chosen to allow for the use of a dedicated T1 line for accessing data in the cloud). The cost per GB is $0.25 per month, and the cost per GB transferred is $0.10. For the sake of simplicity, metadata operations won't be charged.
| Month 1 | |
| Dedicated T1 line charge | $200 |
| Base storage charge for 5,120 GB | $1,280 |
| Cloud data transfer charges (reads/writes/adds) | $51.20 |
| Total charges for Month 1 | $1,531 |
| Month 2 | |
| Dedicated T1 line charge | $200 |
| Base storage charge for 5,222 GB | $1,306 |
| Cloud data transfer charges (reads/writes/adds) | $52.22 |
| Total charges for Month 2 | $1,558 |
Estimated cost to initially load 5,120 GB based on per-hour charge of $2.49 using USB 2.0 data rates: $62.25 (25 hours at 60 MB/sec sustained)
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about the hidden costs of cloud storage.
This was first published in January 2010