Unlimited cloud storage plans are becoming extinct - What’s next for businesses?
Dropbox's recent move to discontinue
its unlimited cloud storage plan is part of an industry-wide trend. For years,
cloud storage providers have offered unlimited storage plans targeted at
businesses. However, the economics of such offerings are proving unsustainable,
leading companies to phase out unlimited storage plans.
This shift began with Google in 2021,
as they phased out free storage for Google Photos users and ended unlimited
storage plans for Google Workspace. Microsoft and Dropbox followed suit in
2023, reflecting the difficulty of maintaining unlimited storage offers. The
repercussions of these changes leave users reassessing their choice of public
cloud storage.
Today, over 60% of corporate data
resides in the cloud, with 94% of global companies using cloud storage (GoodFirms, 2023), of
which nearly half of the data stored in the cloud is sensitive data, including employee
and customer data, corporate finances, and intellectual property. As data
volumes continue to rise, cloud storage spending is predicted to increase by
13% by 2026, reaching $135.1 billion (IDC, 2023).
As data volumes continue to
skyrocket, providing unlimited space has become increasingly challenging for
companies. Google pointed out the need to accommodate the burgeoning demand for
storage, while Dropbox cited misuse of their service as a driving factor to end
the Dropbox Advanced offer, which they intended for business operations and not
for personal storage.
Switching your cloud infrastructure
can come with a hefty price tag. Companies might find themselves grappling with
the expenses associated with seeking alternative solutions that some have
described as a poor return on their cloud
investments. These transitions often entail high conversion costs as
users seek alternative solutions, potentially leading to downtime and
operational disruptions. While public cloud storage is convenient, it may not
always be the optimal choice for storing critical business data due to the
limited control it offers over the server.
In contrast, private cloud storage
solutions offer a compelling alternative to unlimited cloud storage plans.
Unlike public cloud solutions, where users rely on third-party servers, private
cloud storage solutions operate within dedicated file servers through a Network
Attached Storage (NAS) device. This self-contained infrastructure supports
flexible storage scalability, enabling businesses to adjust their capacity to
match their evolving needs. Private clouds can also integrate hybrid setups,
striking a healthy balance between the benefits of
public and private clouds to enhance resource management efficiency. Data
privacy and security are also enhanced as businesses gain more control over
their servers, contrary to public cloud storage.
Beyond complete data ownership, some
private cloud storage solutions, like Synology Drive, offer additional features
like license-free productivity tools that enable a seamless workflow and wide
file format support to streamline collaboration with external agents. This
makes them a practical choice for businesses looking for a comprehensive
storage solution combining security and full control that can be achieved
through a one-time NAS investment.
With the downward trend of unlimited
storage plans, it is likely that other public cloud services will soon follow
in their steps. In the face of the evolving cloud landscape, on-premise private
cloud storage solutions present a more viable option for businesses. This
allows businesses to continue growing in a stable cloud environment without
facing the cost and disruption associated with migrating services due to
changes to their storage pricing plans.
#UnlimitedCloudStorage
#UnlimitedSpace
Learn more:
· Discover the best
practices for Synology Drive
· Find the best NAS for your business
(By: Mr. Rex
Huang, Senior Manager, Application Group, Synology)
Leave A Comment