So this is a longer article, but bear with us and we’ll get to the key details as smoothly as possible. Almost all businesses accrue data and so are faced with a critical decision regarding how safely and reliably store this data as the business grows . While cloud storage has gained popularity for its convenience and scalability, Network Attached Storage (NAS) boxes from Synology and QNAP offer a compelling alternative that can significantly reduce business expenses. Here’s a closer look at how NAS boxes can be a cost-effective solution compared to cloud storage providers.

Initial Cost vs. Recurring Fees

One of the most noticeable differences between NAS and cloud storage is the cost structure. Cloud storage providers typically operate on a subscription model, charging businesses monthly or annually based on the amount of data stored and accessed. Over time, these recurring fees can add up, especially for companies with large data storage needs.

In contrast, NAS boxes involve a one-time investment. Once purchased, a NAS box and the necessary hard drives incur minimal ongoing costs, primarily related to electricity and occasional maintenance. This upfront expenditure can be more economical in the long run, particularly for small to medium-sized businesses with predictable storage requirements.

While onsite NAS storage is an excellent way to reduce data storage costs significantly, it is crucial to factor in the cost of an offsite backup solution to ensure data redundancy and protection against potential onsite disasters. Implementing an offsite backup strategy adds an additional layer of security and peace of mind and for the purpose of this analysis we’re looking at integrating Backblaze B2 service as an offsite backup solution.

To provide a clear comparison between Cloud based and NAS storage we’re going to look at Dropbox for Teams and a Synology DS214+ with two 4TB disks for 5 staff members and 10 staff members a this should give a good indication for most small size businesses and evaluate the costs over a period of time.

Dropbox for Teams vs. Synology NAS with Backblaze B2

Dropbox for Teams

• Cost Per User: £12/month
• Number of Users: 5
• Monthly Cost: 5 users x £12/user/month = £60/month
• Annual Cost: £60/month x 12 months = £720/year

Synology DS214+ with Two 4TB Disks and Backblaze B2

• Initial Hardware Cost: £500 (one-time purchase)
• Estimated Electricity Cost: Approximately £50/year
• Maintenance and Upkeep: Approximately £50/year
• Backblaze B2 Cost: £4.69 per TB/month
• Data Storage: 4TB

Annual Backblaze B2 Cost

• Monthly Cost for 4TB: 4TB * £4.69/TB = £18.76
• Annual Cost: £18.76/month * 12 months = £225.12/year

Total Cost Over Time based on 5 staff members.

• Year 1 Savings with NAS: £720 (Dropbox) – £825.12 (NAS + Backblaze) = -£105.12 (Dropbox is cheaper in the first year due to initial hardware cost)
• Year 2 Savings with NAS: £1440 (Dropbox) – £1150.24 (NAS + Backblaze) = £289.76
• Year 3 Savings with NAS: £2160 (Dropbox) – £1475.36 (NAS + Backblaze) = £684.64
• Year 4 Savings with NAS: £2880 (Dropbox) – £1800.48 (NAS + Backblaze) = £1079.52
• Year 5 Savings with NAS: £3600 (Dropbox) – £2125.60 (NAS + Backblaze) = £1474.40

When we make the same comparison again with 10 Users the cost savings become even more significant.

• Year 1 Savings with NAS: £1440 (Dropbox) – £825.12 (NAS + Backblaze) = £614.88
• Year 2 Savings with NAS: £2880 (Dropbox) – £1150.24 (NAS + Backblaze) = £1729.76
• Year 3 Savings with NAS: £4320 (Dropbox) – £1475.36 (NAS + Backblaze) = £2844.64
• Year 4 Savings with NAS: £5760 (Dropbox) – £1800.48 (NAS + Backblaze) = £3967.52

With 10 Dropbox users, the savings with the NAS solution using Backblaze B2 become even more pronounced over time. The initial higher investment in NAS hardware is offset by significant cost savings starting from the first year, making it a financially advantageous choice for businesses with larger user bases and data storage needs.

Control Over Data

Data security and control are paramount for businesses. With cloud storage, data is stored on servers managed by third-party providers. While reputable cloud providers implement robust security measures, businesses must trust these external entities with their sensitive information.

NAS boxes, on the other hand, keep data on-site, giving businesses complete control over their storage infrastructure. This can potentially reduce the risk of data breaches (from Phishing scams for example) and ensure compliance with industry-specific regulations. By maintaining physical custody of their data, businesses can implement tailored security protocols, reducing potential costs associated with data breaches or compliance failures.

Scalability Without Hidden Costs

Scalability is often cited as a key advantage of cloud storage, but this flexibility can come at a price. As businesses grow and their storage needs increase, so do their cloud storage fees. NAS boxes offer scalable storage without hidden fees. Businesses can start with a modest setup and expand their storage capacity by adding more hard drives or upgrading to a larger NAS unit as needed. This incremental approach allows for predictable budgeting and avoids the surprise costs often associated with cloud storage expansion.

Network Performance and Accessibility

For businesses that require frequent access to large files, network performance is crucial. Cloud storage relies on internet connectivity, which can lead to latency issues and slower access times, especially with large data sets.

NAS boxes are integrated into the local network, providing high-speed access to data without dependence on internet bandwidth. This can enhance productivity and reduce downtime, indirectly saving costs associated with inefficiencies and slow data retrieval.

Long-Term Value

While the initial setup cost of a NAS box might be higher than starting with a cloud storage subscription, the long-term savings are substantial. Over several years, the cumulative cost of cloud storage can far exceed the investment in a NAS box. For businesses with steady or growing data storage needs, NAS boxes present a more predictable and financially sustainable solution.

An Objective Conclusion

Choosing the right data storage solution is a critical decision for businesses. While cloud storage offers certain conveniences, NAS boxes provide a cost-effective, secure, and scalable alternative that can significantly reduce business expenses. By investing in a NAS box companies can gain greater control over their data, improve network performance, and achieve long-term savings, making it a smart choice for savvy businesses looking to optimize their IT budgets.

What we have to remember is that as with any technology NAS boxes while offering numerous benefits, are not immune to potential issues. Common challenges include hardware failures, which can lead to data loss if backup and configurations are not properly implemented or maintained. Network connectivity issues might arise, affecting remote access or file transfers. Security vulnerabilities can also be a concern if NAS firmware is not regularly updated. Moreover, managing and scaling NAS solutions can require technical expertise and time.

Cloud storage providers, on the other hand, also face challenges. Software bugs can cause service interruptions or data inconsistencies. High levels of local storage consumption on user devices can become problematic too, particularly with modern laptops that often have limited SSD capacities (typically around 500GB). This limitation can necessitate frequent data pruning or additional costs for expanded local storage, affecting user experience and overall cost-effectiveness. So ultimately the choice between NAS boxes and cloud storage should always consider specific business needs, data security requirements, and budget constraints.