Cloud storage vs. Local storage: which is cheaper?

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You should always back up your data. Not only can you access your files when you’re away from your computer, but you also risk losing all of your data if you don’t back them up regularly. However, by deciding exactly how backing up your files is another matter.

It used to be that if you wanted to take your files with you (and keep them safe in case of malware), old-fashioned computer accessories like floppy disks and zip disks were a must. Today, cloud storage and external drives are fighting for supremacy. Each has its own advantages and disadvantages, including the fact that one requires an internet connection and the other risks damage if it falls out of your pocket. The arguments for each of these almost mirror discussions of “physical vs. digital video games,” but unlike those products, monetization differs wildly between cloud and local storage. For many people, the choice between cloud and local storage is determined less by their preferences between physical and digital media than by the impact of each on their wallet.

We crunched the numbers and determined how each storage solution impacts your budget. Read on for our findings.

We cannot deny that cloud storage is much more convenient than local storage. You don’t need to carry physical items, and cloud services often upload your files automatically, so your files are safe even when you forget to back them up. However, most plans will eat into your wallet if you’re not careful.

Cloud storage solutions offer plans to fit almost any budget. For people who have little to store, many start with a free plan. For example, Amazon CloudFront and Microsoft OneDrive let you back up 5GB of data for free, but if you need to protect more information, you’ll have to pay increasing amounts depending on the space you need. For $15 per month, you can purchase 50 GB of cloud storage from Amazon, while OneDrive provides 100 GB for just $19.99 per year. But while OneDrive tops out at $99.99 per year for 1TB, Amazon sells 5TB of storage for $1,000 per month. And then there are popular alternative cloud subscriptions such as pCloud: $4.99 per month gives you 500 GB, while $299.99 per year will provide 10 TB of storage.

While many of these prices seem reasonable, they add up over time and you lose your data if you can’t pay. Yes, pCloud’s $300 annual price for 10TB offers more storage for less than most physical drives, but that’s still $300 per year. In two years, that’s $600 for the same 10TB, and in three years, you’ll have spent $900. Unless you want to store all the data for a next-gen game you’re developing, you neither need that much space available nor spend that much money on it.

If you are using a local storage solution such as an external hard drive or SSD, you must insert it into a computer and manually select the files you want to save. This takes time, but gives a tangible feeling that cloud drives don’t provide, especially if you buy an external drive that powers up. Plus, they have the benefit of “pay once, keep forever.”

Although local storage solutions are always more expensive than cloud storage plans, prices vary depending on size. You often have two options: a USB stick and an external hard drive. While you’ll never find a free drive with 5GB of storage (and be wary if someone offers you one), you can often purchase a 1TB hard drive, such as Western Digital Elements Portable, for less than $150. If that’s not big enough, LaCie sells a massive 10TB external hard drive for $379.99.

What external drives lack in price, they more than make up for all the time. Just look at LaCie’s 10TB hard drive. Sure, it’s $79 more than pCloud’s 10TB subscription, but that’s 10TB you keep forever. If you want to access your 10TB of data on pCloud’s server, you will have to pay over $300 every year. Honestly, local storage solutions pay for themselves once you get over the payment hassle. If you really need the money, buy an external drive with a “buy now, pay later” plan – just make sure you choose a plan you can afford without any additional APR.