Mounting fees associated with cloud data storage could result in large and unexpected expenses, and even undermine the ROI on AI investments.
This is according to Ian Parker, Executive Manager Partnerships and Technology at network security and information security distributor LOOPHOLD.
Parker says the Wasabi 2026 Global Cloud Storage Index, developed in collaboration with Vanson Bourne, also revealed that 50% of respondents’ billing is allocated to storage-related fees, while only 49% is allocated to actual storage capacity. API call fees, data operations fees, data retrieval fees and deletion fees are all adding up to big headaches for IT decision-makers. Forty-nine percent of organisations said they exceeded budgeted spending for cloud storage in 2025. Ninety-one percent said fees were a reason why their spending on public cloud storage exceeded budget expectations.
The report finds that approximately two-thirds of AI budgets are allocated to the data, storage and processing power needed to feed and run AI applications, and says that as organisations scale AI initiatives, mounting data storage and data quality challenges could quickly erode AI ROI if not managed effectively.
The index also finds that data organisations think is ‘cold’ can be fairly active. Only 19% of data stored in cloud object storage is considered cold – defined as "secondary storage for archive data accessed annually or less frequently, with expected performance limitations in terms of access". But while 98% of IT decision-makers reported accessing data from archive tiers at least yearly, as many as 83% said they needed to access archived data – with all the accompanying access fees and performance degradation – at least monthly. Whether to meet compliance requirements, monetise old content, perform analytics or to train large language models (LLMs), ready and consistent access to archived data without crippling fees is clearly becoming a growing requirement, the report said.
To help minimise and avoid the impact of fees and budget overruns, many organisations turn to multicloud and hybrid cloud deployments, but trying to optimise price and performance with multiple tiers can quickly increase cost and complexity, Parker says.
Parker explains: “With big hyperscalers, in addition to the storage cost, there may be various costs associated with ingress and egress. So you’re paying for your data to be held there, but if you want to use it, you have to pay for that as well. Also, every time an application talks to that storage, there's an API fee. These costs can be very unpredictable – and they’re escalating.”
He highlights Wasabi, available via LOOPHOLD, which offers highly affordable and predictably priced hot cloud storage with no complex tiers or additional fees. Priced closer to cold storage, Wasabi is as fast as its competitors’ fastest tiers and is backed by enterprise-grade, multi-layered security. Wasabi also offers Covert Copy technology, an innovative new take on the virtual air-gap, which makes data invisible, impenetrable and impervious to external and internal bad actors.
“With Wasabi, you don't pay for any of those API fees, you don't pay to put the data in, and you don't pay to take the data out, you just pay a fee for the storage. It’s a flat fee that’s predictable and significantly cheaper than any other option – up to 80% less than the hyperscalers. When you utilise additional features like a Covert Copy or mirroring your data, you just need to pay for that storage,” Parker says.
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