Cloud Storage Data

Cloud Storage Data – Editor’s Note: On March 9, 2018, the B2 Cloud Storage download price was reduced from $0.02 to $0.01 per gigabyte. Check out our updated B2 cost calculator.

This week, we’re celebrating the one-year anniversary of the launch of B2 Cloud Storage. Today’s post focuses on giving you a behind-the-scenes look at the costs of setting up cloud storage. Why? Over the past 10 years, the most common question we’ve received has been “How to?” In this multi-billion dollar global industry exhibiting exponential growth, none of the other major players want to discuss base costs. By disclosing some of the funds, we will provide a better understanding of the costs of running the “cloud” and continue our tradition of sharing information for the betterment of the larger community.

Cloud Storage Data

Cloud Storage Data

We are proud of the achievement of building one of the largest cloud storage systems in the industry. We launched the business and funded our growth through our own business operations and just $5.3 million in equity financing ($2.8 million of which was invested in the business—the other $2.5 million was a tender offer to shareholders). To do this, we need to efficiently build our storage system and operate it as a real, independent business. With over a decade in the data storage business, we’ve developed a deep understanding of the economics of cloud storage.

Cloud Computing Technology And Online Data Storage For Global Information Share . Computer Connects To Internet Network Server Service For Cloud Data Stock Photo

I’m going to focus today’s discussion on COGS: what it consists of, how it breaks down and how much revenue it generates. 47% of our revenue is a close to break even business with COGS and the remaining 53% of our OpEx is spent on developing new features, marketing, sales, office rent and other administrative expenses. Company.

The focus of this post on COGS is “How to set up cloud storage at such a low cost?” Let me answer a commonly asked question.

Save data to hard disk. Those hard drives are “wrapped” with servers so they can connect to people and store data. We discussed our approach to how this works with our vaults and storage pods. Our infrastructure is purpose built for data storage. That is, we figure out how data storage should work and then build it from the ground up. Other companies may use different storage media such as Flash, SSD or tape. But they all perform the same function of actually storing data. Today we think of all this as “hardware”.

We purchase storage hardware that lasts an average of five years (60 months). To keep hardware costs comparable to our monthly expenses, we reimburse them and recognize 1/60 of the purchase price each month.

Cloud Storage Landing Page. Synchronization Clouds Storages And Devices, Data Backup And Synchronize Apps Vector Stock Vector

Storage pods and hard drives aren’t the only hardware in our environment. We also need to buy cabinets and rails to house the servers, core servers to manage accounts/billing/etc, switches, routers, power strips, cables and more. (Our post on bringing up a data center covers some of these details.) However, storage pods and the drives inside make up about 90% of all hardware costs.

“Cloud” is a great marketing term and one that has been used in our industry. All “clouds” store data on something physical, like a hard drive. Those hard drives (and servers) are real, tangible things that take up real space on Earth, not in the cloud.

At, we rent space in colorful facilities that provide a safe, temperature-controlled and reliable home for our equipment. Other companies are building their own data centers. It’s a classic rent-to-buy decision; But it always ends up with hardware in racks in data centers.

Cloud Storage Data

Hardware also needs power to function. Not everyone realizes it, but electricity is a big expense to run cloud storage. In fact, some data center locations are billed solely as a function of electricity rates.

Cloud Data Breaches: 4 Biggest Threats To Cloud Storage Security

Storing data on each hard drive adds additional space and power requirements. This is a cost that scales with storage growth.

I would also like to comment on taxes. We pay sales and property tax on the hardware and that is remitted as part of the hardware portion above. However, it’s important to think about lines when considering a data center because the location of the hardware actually drives the amount of lines placed on the hardware.

Running a data center requires humans to keep everything running smoothly. The more data we store, the more human hands are required in the data center. All drives eventually fail. If that fails, a “dump” must occur to physically install a replacement drive in the data center and populate it with customer data (all customer data is redundantly stored on multiple drives). People specifically related to managing data center operations are included in COGS because as you use more hard drives and servers, you need more of these people.

Customer support is another group of people who are part of COGS. When customers use our services, questions always arise. We provide customer support services from our headquarters in San Mateo, CA to serve our customers and get the right answers to their queries. They did an amazing job! Staffing model, internally, is a function of the number of customers and the rate of acquisition of new customers.

Chapter 2. The Cloud Storage Connectors

Over 350PB of customer data is stored in our data centers. Much of it is uploaded by customers to the Internet (another option, our Fireball service, is six months old and growing in adoption). Uploading data to the Internet requires bandwidth—basically, an Internet connection is like the connection to your home or office. But for data centers, instead of contracting with Time Warner or Comcast, we go “upstream.” Effectively, we buy in bulk.

Understanding how that dynamic plays out with your customer base is an important driver of how cloud providers set their prices. Being in business for a decade has a clear advantage here. Because we understand our customers’ behavior and reach a certain volume, we can buy enough bandwidth in bulk to provide the industry’s best download price of $0.02/GB (compared to $0.05 from Amazon, Google and Microsoft). (See Download price change notice – $0.02 to $0.01 per gigabyte – Editor.)

Why is optimizing download bandwidth rates important to data storage business customers? This is important because it has a direct relationship with you and can access and use your data.

Cloud Storage Data

We have grouped the rest of the costs under “Other Charges”. This includes the fees we pay to our payment processors and the costs of operating our redemption, returns and refund program.

Data Center Storage

Businesses like ours that need to securely accept credit cards online need payment processors. Most of the money we pay to payment processors goes to credit card companies like AmEx, Visa and Mastercard.

The Restore, Return, Refund program is a unique program for our computer backup and business backup products. Customers can download any of their files directly from our website. We also offer customers the ability to order a hard drive containing some or all of their data and then FedEx it to the customer wherever the customer is in the world. Any customer can return the full amount back to us. Customers love the program, but it costs money. We choose to subsidize the costs associated with this service in an effort to provide the best possible customer experience.

At the beginning of the post, I mentioned that effectively, the business breaks even. The reality is that our products drive profitable businesses, but those profits are reinvested back into the business to fund product development and growth. This means expanding our team as the size and complexity of the business grows; That means being lucky enough to fund additional hardware “reserves”, bandwidth, data center space, etc. In our first few years as a captive business, having adequate buffers was a challenge. We are very proud to be in a financial space that can weather the storm and make things predictable.

All of this adds up to answering the question of how the cloud managed to carve out its share of the market – a focus for some of the biggest companies of our time. We’ve invented new, purpose-built storage infrastructure with our Vaults and Pods. That allows infrastructure costs to be kept very, very low. The low cost allows us to offer more affordable and reliable cloud storage.

Data Center Server Room Cloud Storage Technology 530693 Vector Art At Vecteezy

Is reliable and affordable storage important? It allows organizations like Vintage Aerial to digitize 50 years of aerial photography of the American countryside and share the nation’s treasures.

Secure data storage cloud, data storage in cloud, cloud based data storage, cloud storage for backup data, google cloud data storage, cloud data storage solutions, hybrid cloud data storage, cloud data storage, data backup cloud storage, cloud data storage providers, data storage cloud services, cloud data storage companies

Leave a Reply

Your email address will not be published. Required fields are marked *