UK Cloud Backup Costs: Why Your 3-Year Agreement Might Be Costing You More

UK Cloud Backup Costs: Why Your 3-Year Agreement Might Be Costing You More

The Shifting Landscape of Cloud Backup Pricing

Two years ago, the average cost of Managed Cloud Backup in the UK for businesses was around £0.25 to £0.35 per GB per month. Today, we’re seeing prices as low as £0.13 to £0.17 per GB per month for comparable services. This represents a significant 40–50% decrease in just 24 months.

Business-Specific Pricing

It’s important to note that pricing can vary significantly based on the specific needs of a business:

• Some providers offer plans starting from as low as £50 per month for business backups, with pricing dependent on data storage requirements.

• Enterprise-level solutions like Azure Backup use a tiered pricing model, where costs decrease as data volume increases.

• Some providers, offer business backup services for servers and NAS devices at around £20 per TB per month (approximately £0.02 per GB).

The Value of Shopping Around

With such significant price drops, businesses locked into long-term contracts may be overpaying. For instance, one provider offers cloud storage for as low as £60.00 per TB per month (about £0.06 per GB) with no usage fees, which is substantially lower than average rates from two years ago. These updated figures further emphasise the importance of regularly reviewing your Cloud Backup agreements and considering renegotiation or switching providers to take advantage of the current, more competitive pricing landscape.

Understanding Service Levels and Their Impact on Pricing

When evaluating Cloud Backup costs, it’s crucial to consider the level of service you’re receiving. Prices can vary significantly based on the features and support included in your package.

Managed Backup Services

For managed backup services, which include features like automatic backups, monitoring, and basic support:

• Average costs range from £0.13 to £0.17 per GB per month

Comprehensive Disaster Recovery Services

When disaster recovery capabilities are included, such as rapid failover and business continuity planning:

• Costs typically range from £0.12 to £0.22 per GB per month

The Value Proposition

While managed services and disaster recovery solutions come at a premium, they offer significant benefits:

1. Expertise: Access to skilled professionals managing your backups

2. Time Savings: Reduced need for in-house IT resources

3. Peace of Mind: Knowing your data is not just backed up, but recoverable in crisis situations

Making the Right Choice for Your Business

When evaluating your Cloud Backup strategy:

1. Assess Your Needs: Determine whether you require basic storage, managed backups, or full disaster recovery.

2. Calculate Total Cost of Ownership: Consider not just the storage costs, but the potential costs of data loss or downtime.

3. Review Service Level Agreements (SLAs): Ensure the provider’s guarantees align with your business requirements.

At Supplier Synergy, we offer a range of solutions to meet diverse business needs and budgets. Our experts can help you determine the most cost-effective option that doesn’t compromise on the level of protection your business requires.

The Bottom Line

While basic cloud storage costs have decreased significantly, the value of managed services and disaster recovery capabilities remains high. If you’re in a long-term agreement, it’s worth reassessing not just the price you’re paying, but also the services you’re receiving. Don’t let an outdated agreement hold your business back.

Contact us today to learn how we can help you optimise your Cloud Backup strategy, ensuring you have the right level of protection at the most competitive price point.