A new report from Wasabi Technologies reveals that surprise cloud storage fees are significantly hindering organizations’ IT and business operations. The 2025 Global Cloud Storage Index, based on a survey of 1,600 IT decision-makers, shows that a staggering 56% of businesses experience delays due to data egress and access fees. These unexpected charges, alongside API call and operational costs, eat up nearly half (49%) of the average user’s cloud storage bill.

Unveiling the True Cost of Cloud Storage

The study illuminates a troubling trend: storage fees are disproportionately high compared to the actual storage capacity used. The report indicates that 62% of organizations exceeded their cloud storage budget in 2024, a sharp rise from 53% the previous year. Difficulty in forecasting storage needs and unexpectedly high operational fees drive these budget overruns. Therefore, companies must carefully evaluate their cloud storage strategies.

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Data Security Remains Paramount

Despite the rising costs, organizations continue to prioritize data security in the cloud. Almost all (99%) of respondents reported data security-related benefits from using public cloud storage, citing improved security capabilities and the ability to prevent data loss. Furthermore, nearly every organization recovers data from their cloud storage environments. However, surprisingly, less than half currently leverage object lock (immutability) for backup procedures, presenting a clear opportunity for enhanced data protection.

Cold Storage: A Hot Mess?

The report also sheds light on the challenges associated with cold storage access. A significant 98% of organizations using low-cost “cold” storage tiers report dealing with data performance degradation and access penalties. As a result, one in five organizations experiences negative impacts on business operations due to these delays. In fact, most organizations access data stored in cold tiers weekly or monthly, primarily for regulatory needs or security event responses.

Cloud storage costs are often unpredictable for organizations, with additional fees for data movement and access further increasing uncertainty. This unpredictability can hinder business initiatives and slow innovation,” says Andrew Smith, Director of Strategy and Market Intelligence at Wasabi Technologies. Smith emphasizes the importance of minimizing these fee structures, especially as organizations increasingly rely on AI-based initiatives that demand vast amounts of data.

Dave Friend, Founder and CEO of Wasabi Technologies, emphasizes transparent pricing: “At Wasabi, we charge only for storage, eliminating complex tiered pricing and unnecessary fees for our users.”

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FAQs

1. What are the biggest hidden costs associated with cloud storage?

Data egress fees, API call charges, operational costs, and performance penalties when accessing cold storage tiers are the primary drivers of unexpected cloud storage expenses.

2. How can organizations better manage their cloud storage costs?

Organizations should carefully forecast their storage needs, negotiate favorable pricing agreements with providers, and explore solutions with transparent and predictable pricing models.

3. Why aren’t more organizations using object lock for data backup?

While many organizations recognize the security benefits of object lock (immutability), concerns about complexity, cost, or lack of awareness may be hindering wider adoption. However, the report indicates that many plan to implement object lock in the near future.

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