Many cloud storage companies use a tiered pricing scale when it comes to cloud storage. With these pricing models, the more storage you use, the less you’ll pay per TB of storage. This may seem like a great deal for companies that store a lot of data – after all, doesn’t this benefit them more? However, the more you look into it, the more flat-rate pricing works best for all companies, even large ones. Here’s why flat-rate cloud storage pricing is a good option for everyone.
- More Transparent
Quite simply, flat-rate pricing is much more transparent. Oftentimes, you’ll see companies with tiered storage packages advertise as “starting from” a certain dollar amount per TB. Once you actually get to the product page, however, you’ll be surprised to learn that that dollar amount is only available to companies who store a massive amount of data on the company’s servers, an amount that you may not even be interested in storing. The transparency of flat-rate pricing allows you to feel like the company hasn’t lied to you.
- No Push to Use More Storage
Tiered pricing is often used to push companies to use more storage than they actually need. What happens when, for example, the second “tier” kicks in at 100TB, and you’re storing 95TB per month? It might make you try to increase the amount of data you’re storing to save money per TB, even if the amount of money you’re saving isn’t actually that significant. Over time, this can make you reserve more storage than you really need, causing your bill to increase.
- Better Ability to Estimate Price
Your ability to estimate the amount of money you’re going to pay on your cloud storage services is a crucial part of estimating your budget for the year. If you know that you’re going to store about a certain amount of data, and pricing is flat-rate, you can very easily determine exactly how much that’s going to cost you. However, if the pricing is tiered, you may need to come up with two different situations for cloud storage cost. Flat-rate pricing is easier to estimate and use.
- More Happy Customers
Lastly, flat-rate pricing simply results in happier customers overall. Companies that use tiered pricing may have slightly more confusing pricing, and that can easily lead into more confusing support and even more confusing extra charges. Flat-rate pricing allows the company to spend less time calculating how much to charge customers and more time helping them be happy with their service.
Even though tiered pricing scales may seem like they’re benefitting you as a large company, they’re actually not incredibly beneficial for just about anyone, including the larger companies who use cloud storage. If you’re looking for the most straightforward pricing, and often even the best pricing overall, you’re probably looking for cloud storage that bills you the same dollar amount per TB whether you’re storing 500TB or 5TB.