Cloud storage was supposed to simplify infrastructure. Instead, it’s become one of the most unpredictable—and expensive—line items in IT budgets.
A new Dimensional Research report, commissioned by Backblaze, reveals that 95% of organizations experience unexpected cloud storage charges—costs that disrupt budgets, slow innovation, and limit flexibility.
The 2025 study surveyed more than 400 IT decision makers responsible for managing at least 250TB of data in the public cloud. The findings make one thing clear: as AI, analytics, and data-intensive workloads expand, hidden costs and limited interoperability are forcing companies to rethink their cloud strategies.
The problem: Hidden fees are everywhere
According to the research, nearly every organization surveyed has been hit by surprise charges like retrieval, egress, or PUT fees.
- 95% of respondents reported unexpected costs for cloud storage usage.
- Larger organizations—those with more than 5PB of data—were even more likely to experience frequent charges.
These hidden costs have become such a burden that 85% of companies are taking steps to manage them. The top tactics include:
- Reducing the size of datasets stored in the cloud (56%)
- Shortening storage duration policies (45%)
- Cutting spending elsewhere in the tech stack (40%)
In short: IT teams are making trade-offs to avoid surprise costs—trade-offs that can limit innovation and reduce the value of their data
Egress costs are locking companies in
One of the most striking findings:
55% of respondents said that the cost of egressing and moving data is the biggest barrier to switching cloud storage providers.
That means many organizations feel trapped in their current solutions—not because the technology is best-in-class, but because moving their data would be too expensive.
This dynamic creates what’s often called a “walled garden” effect—where providers profit from data lock-in rather than delivering value through performance or innovation.
The result? Slower cloud adoption, limited agility, and higher total cost of ownership for IT teams trying to scale modern workloads.
Flexibility and interoperability are the new imperatives
If cost surprises weren’t enough, nearly all respondents (99%) said that limited flexibility and lack of interoperability are impacting their ability to deliver and scale.
In other words: even when data is stored safely, it’s often stuck—difficult to move, integrate, or use across tools and platforms.
This friction hits hardest at large enterprises and data-heavy organizations that depend on cross-cloud workflows, hybrid architectures, or AI pipelines that require moving large volumes of data frequently.
A turning point for cloud storage strategy
With 62% of respondents preferring to select best of breed providers vs. one-stop-shops, these findings highlight a growing shift:
- IT teams are no longer choosing cloud providers solely based on performance or ecosystem.
- They’re prioritizing predictability, transparency, and interoperability—the ability to move and use data freely, without hidden penalties.
Backblaze has long championed this model with open cloud storage that puts customers—not pricing structures—in control. Our egress fee transparency, S3 compatible APIs, and simple pricing are designed to eliminate the pain points identified in this report.As one respondent put it: “We need a cloud partner that helps us use our data, not pay to move it.”
What’s next: Join the conversation
The full report—The Hidden Cost of Cloud Object Storage—is now available for download. Inside, you’ll find all the data, charts, and insights from 400+ IT leaders across industries and company sizes.
And, to dive deeper into the findings, join us for an upcoming live webinar with experts from Dimensional Research and Backblaze. We’ll unpack the key trends, share real-world stories from IT leaders, and discuss how to build a more transparent, flexible cloud strategy.
About the research
The survey, conducted by Dimensional Research in May–June 2025, included responses from 403 qualified technology stakeholders responsible for cloud storage strategy and budgets. All participants represented companies with over 250TB of data stored in the public cloud.
