It can be quite high, but it doesn't have to be. For instance, I have a 7TB storage server from Hosthatch that's $190 for 2 years. That's $7.92 per month, or £5.88 at today's exchange rates. That's under 20p per day.
Just on electricity costs alone, this is good value. My electricity costs are 22.86p/kWh which is pretty cheap for the UK. That means that if having that drive plugged in and available 24/7 uses more than 37W, it's more expensive to self host at home than rent the space via a server. Also, I've not needed to buy the drive or a NAS, nor do I have to worry about replacing hardware if it fails.
They tend to do promotions, typically only valid for 24h and only advertised on certain forums like LET, a couple of times per year - typically at least around their company anniversary date or Black Friday.
There are others too, e.g. Servarica who keep their Black Friday offers running all year round.
> There are others too, e.g. Servarica who keep their Black Friday offers running all year round.
I don’t understand the logic here so I’m going to assume I’m being obtuse. Doesn’t that just mean that’s their standard price? Why or how would you ever pay more?
Yeah, I kind of agree in the latter case. Black Friday deals often have lower priority support etc.
I guess with Servarica, they have their standard deals, but for Black Friday deals are generally thin margins, but still enough to cover costs. Typically every year, they have special deals that are a bit different to their previous offerings. As a result, some people prefer the previous deals, some prefer the new ones, so they keep them all going. It's a bit unusual. They've also got a few interesting deals, like start with N TB and it grows a bit every day. If you keep these more than about 3-4 years, these are probably better value for money, but I think you're paying too much in the first few years. It's interesting if your primary use case is incremental backups.
Hosthatch's deals are a bit different as they're usually preorders and at almost cost with basically minimal support, whereas they keep their normal stuff in stock and have higher support levels.
I should also add that I've not personally used Servarica, even though they look interesting - just because they only have a Canadian datacenter. I have 4 Hosthatch servers spread all over the globe so that I have more redundancy in my backups. I only buy them when they have deals, assuming I don't miss them as they're only for 24h.
For very large amounts of data, the cloud provider can hit economies of scale using tape drives ($$$$ to buy a tape drive yourself) or enterprise-class hard drives (very loud + high price of entry if you want redundancy + higher failure rate than other storage). That's why storing data in the slower storage classes in S3 and other object stores is so cheap compared to buying and replacing drives.
Its always gonna be cheaper because you don't have the cloud provider's profit margin, which can be quite high.