Price Gap: Storage vs. Bandwidth

Cloud computing success relies on high-speed bandwidth. Whether streaming movies or running applications from the cloud, the ability to get data quickly from the cloud to the computer (or tablet or phone) is a key requirement for rapid adoption.

As such, we decided to take a look at how well internet bandwidth to the home has kept up with another key ingredient of the cloud: hard drive prices. Below is the comparison and, unfortunately, it seems that while hard drive manufacturers have done a phenomenal job of capacity increases and price reduction (as an example, a petabyte should cost $94 trillion)—bandwidth to the home has not kept up. This means that people are continually able to do more locally than in the cloud.

There have been some interesting announcements in the space recently including Sonic.net testing 1 Gb/s fiber for $70 and Comcast demoing 1 Gb/s broadband over cable. Will bandwidth change its historical trajectory?

storage vs bandwidth

About Gleb Budman

Gleb Budman is a co-founder and has served as our chief executive officer since 2007, guiding the business from its inception in a Palo Alto apartment to a company serving customers in more than 175 countries with over an exabyte of data under management. Gleb has served as a member of our board of directors since 2009 and as chairperson since January 2021. Prior to Backblaze, Gleb was the senior director of product management at SonicWall and the vice president of products at MailFrontier, which was acquired by SonicWall. Before that, he served in a senior position at Kendara, which was acquired by Excite@Home, and previously founded and successfully exited two other startup companies.