Price gap: Storage vs Bandwidth

June 22nd, 2011

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 Gbps fiber for $70 and Comcast demoing 1 Gbps broadband over cable. Will bandwidth change it’s historical trajectory?

storage vs bandwidth

Gleb Budman
Co-founder and CEO of Backblaze. Founded three prior companies. He has been a speaker at GigaOm Structure, Ignite: Lean Startup, FailCon, CloudCon; profiled by Inc. and Forbes; a mentor for Teens in Tech; and holds 5 patents on security.

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