But it’s more than a low per-GB cost that provides savings.
Economies of scale. Cloud vendors buy a lot of storage and pass those savings onto customers. But it’s more than a low per-GB cost that provides savings. Moving to the cloud reduces the need to purchase hard disks, the enclosures that contain them, the RAID cards that power the data redundancy, the electricity that powers them, and the hardware warranty services that protect them. But it also lowers management costs by reducing on-premise hardware and software management, simplifying monitoring, and reducing the need for extensive capacity planning. Instead, administrators can focus on other, more important, tasks.