Intro
5 min
Backup Costs What Youre Actually Paying For
Last updated: January 26, 2026
Pro-Owner perspective: This document frames your systems as a technical estate — an asset to be stewarded, documented, and bequeathed. Treat these steps as craftsmanship: protect the continuity, auditability, and transferability of your digital legacy.
Backup Costs What Youre Actually Paying For
The 60-second version
Backup costs aren’t just about storage. You’re paying for reliability, speed, security, and peace of mind. Hidden fees—like egress charges, support tiers, and compliance add-ons—can double your bill. Always ask for a full breakdown.
What this solves (in real business terms)
Understanding backup costs helps you:
- Avoid surprises: Predict monthly expenses and budget accurately.
- Compare vendors fairly: Look beyond the headline price.
- Right-size your plan: Pay for what you need, not what you’re sold.
- Negotiate better: Know which fees are flexible (e.g., support, retention).
What it costs (honest ranges)
Storage
- Local (external drives/NAS): $100–$500 per TB (one-time).
- Cloud (per TB/month): $5–$30 (varies by provider and region).
Software/Licensing
- Basic tools (e.g., Veeam, Acronis): $200–$1,000/year.
- Enterprise features (immutability, ransomware detection): Add 30–50%.
Hidden Fees
- Egress charges: $0.05–$0.12 per GB downloaded (e.g., restoring 1TB = $50–$120).
- Support tiers: $50–$300/month for 24/7 SLAs.
- Compliance add-ons: $100–$500/month for HIPAA/GDPR features.
Total Estimates
- Small business (1–5TB): $1,000–$5,000/year.
- Mid-size (5–20TB): $5,000–$20,000/year.
What can go wrong
- Sticker shock: Unexpected egress or API call fees during recovery.
- Vendor lock-in: High migration costs if you switch providers.
- Over-provisioning: Paying for unused storage or features.
- Under-provisioning: Slow restores or failed backups due to cheap plans.
Vendor questions (copy/paste)
- What’s the total cost for my data size, including all fees?
- Are there egress or API charges for restores?
- Can I lock in pricing for 12+ months?
- What’s included in the base plan vs. add-ons?
- How much to migrate my data out if I leave?
Minimum viable implementation
Start with:
- Local backup: External drive ($200–$500).
- Cloud backup: Basic plan ($10–$50/month for 1TB).
- Free tools: Use built-in OS tools or open-source options (e.g., Duplicati).
Aim for <$1,000/year for a small business.
When to hire help
Bring in experts if:
- Your data exceeds 10TB.
- You need compliance (HIPAA, GDPR, etc.).
- You lack time to monitor backups.
- You want guaranteed recovery SLAs (e.g., 4-hour restore).