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Colocated Synology NAS vs AWS S3 and Azure Blob

Public cloud storage makes it easy to upload large amounts of data without buying hardware. However, the monthly storage rate is only one part of the total cost. Businesses may also pay for downloads, retrieval operations, API requests, regional transfers, replication, and other services whenever data moves out of the cloud.

For organizations that regularly restore backups, distribute media, transfer project files, or retrieve large datasets, these variable charges can make monthly bills difficult to predict. A hosted Synology server in a secure colocation facility offers another approach: the business owns its storage hardware and accesses its data through a network connection with predictable hosting and bandwidth terms.

When comparing a private cloud vs. AWS S3 or Azure Blob Storage, the best choice depends not only on storage capacity but also on how frequently the data must be accessed, restored, and transferred.

What Are Cloud Egress Fees?

Cloud egress fees are charges applied when data leaves a cloud provider’s infrastructure.

Uploading data into a public cloud is often free or inexpensive. Charges may begin when an organization downloads that data to:

  • An office location

  • A remote employee

  • Another cloud provider

  • A customer-facing application

  • A disaster recovery environment

  • An on-premises server

AWS documents data-transfer-out charges for traffic sent from its services to the internet, while Microsoft maintains separate bandwidth and transfer pricing for Azure workloads. Exact costs vary by region, service, transfer destination, volume, storage tier, and contract.

For businesses with stable access patterns, these charges may be manageable. For heavy data users, however, a large recovery or unexpected download surge can create a significant bill.

Why Egress Costs Become Unpredictable

Public cloud bills are based on consumption. This flexibility is useful, but it can also create uncertainty.

A company’s monthly cost may change because of:

  • Large backup restorations

  • Video or media distribution

  • Data migrations

  • Remote workforce downloads

  • Disaster recovery testing

  • Security investigations

  • Cross-region transfers

  • Application traffic growth

A quiet month may produce a modest invoice, while an incident requiring dozens of terabytes to be restored can generate additional transfer and retrieval expenses.

Storage teams must therefore estimate not only how much data will be stored, but how often it will leave the platform.

AWS S3 Cost Considerations

Amazon S3 is a highly scalable object-storage service designed for use cases ranging from application data to archives, backups, and data lakes.

Its pricing can include several components:

  • Storage consumed

  • Data transfer out

  • API requests

  • Retrieval charges

  • Replication

  • Lifecycle transitions

  • Optional acceleration services

The exact amount depends on the selected S3 storage class and workload architecture. AWS currently provides a limited monthly allowance for outbound internet transfer across eligible services, but usage beyond applicable allowances may be billed according to destination, region, and volume.

S3 can remain an excellent option for cloud-native applications and elastic storage. The concern for heavy data users is that frequent retrieval may make total costs harder to forecast than the advertised storage price suggests.

Azure Blob Storage Cost Considerations

Azure Blob Storage is Microsoft’s object-storage platform for unstructured data. Like S3, it uses consumption-based pricing.

Potential charges may include:

  • Monthly storage

  • Read and write operations

  • Data retrieval

  • Data transfer

  • Replication

  • Access-tier changes

  • Early deletion from some cooler tiers

Microsoft separates Blob Storage pricing from bandwidth pricing, and the final cost depends on the selected region, redundancy option, access tier, transaction volume, and transfer destination.

Cooler and archive tiers may reduce monthly storage expenses, but they can introduce retrieval costs or access delays. Businesses should therefore evaluate the complete data lifecycle rather than selecting a tier based only on storage cost per gigabyte.

How Colocated NAS Storage Changes the Cost Model

With NAS colocation, a business purchases or supplies a Synology NAS and places it in a professionally managed data center.

The organization pays for a combination of:

  • Rack space

  • Power

  • Network bandwidth

  • IP addresses

  • Remote support

  • Optional management services

Instead of paying separately each time files are retrieved, the business generally operates within an agreed bandwidth allocation or colocation plan. The specific terms depend on the provider, so unlimited or unmetered transfer should never be assumed without reviewing the service agreement.

Even so, a fixed colocation contract can make costs more predictable than a public cloud model that bills for multiple storage, request, retrieval, and transfer variables.

Hosted Synology Server Advantages

A hosted Synology server provides dedicated storage resources that are not shared with unrelated cloud tenants.

Organizations retain control over:

  • Drive capacity

  • RAID configuration

  • File systems

  • User permissions

  • Retention policies

  • Encryption

  • Backup schedules

  • Network access

Synology positions its systems as private-cloud platforms that allow users to store, manage, access, and share information while retaining control over their data. Synology Drive also supports secure file access and collaboration across devices.

This approach is especially attractive for businesses that want ownership of the hardware without maintaining power, cooling, and connectivity in an office server room.

Workloads That Benefit Most from Colocation

Private NAS colocation is most compelling when an organization moves large volumes of data regularly.

Common examples include:

Backup and Disaster Recovery

Testing full restores or recovering several terabytes after an incident can create substantial public cloud transfer activity. A colocated NAS allows organizations to retrieve data according to the bandwidth terms of the hosting agreement rather than paying a separate cloud egress rate for each gigabyte.

Video and Creative Media

Production companies frequently move large raw video files, project archives, graphics, and completed media. Repeated downloads can make usage-based cloud transfer costs difficult to control.

Engineering and Scientific Data

CAD files, imaging data, simulations, and research datasets are often large and accessed repeatedly by multiple users.

Microsoft 365 and Endpoint Backup

Long retention periods can create large backup repositories. A private NAS gives organizations direct control over capacity, recovery policies, and storage expansion.

Data Migration and Application Hosting

Businesses moving workloads between platforms may need to export large datasets. Keeping a primary or secondary copy on dedicated infrastructure can reduce dependence on repeated public cloud downloads.

Comparing Private Cloud vs. AWS S3

A public object-storage platform and a private NAS serve different purposes.

AWS S3 and Azure Blob offer:

  • Near-instant scalability

  • Global cloud integration

  • Multiple storage tiers

  • Consumption-based spending

  • Extensive application APIs

  • Minimal hardware management

A colocated Synology NAS offers:

  • Dedicated hardware

  • Predictable capacity

  • Customer-controlled storage

  • Familiar file protocols

  • Private-cloud collaboration

  • Flexible backup applications

  • Potential cloud egress cost reduction

Public cloud platforms are often stronger for highly elastic, globally distributed, cloud-native applications. Private NAS infrastructure can be more economical for predictable workloads that repeatedly access or restore large volumes of data.

The Importance of Bandwidth Planning

Colocation does not automatically guarantee fast recovery. Network capacity must match the workload.

IT managers should evaluate:

  • Available port speed

  • Monthly transfer allowance

  • Committed bandwidth

  • Burst charges

  • Office internet speed

  • VPN performance

  • Remote user demand

  • Recovery time objectives

A NAS with 10GbE connectivity cannot deliver 10Gbps to an office limited by a 500Mbps internet connection. Both sides of the connection must be properly sized.

Organizations should also confirm whether the colocation agreement includes metered, committed, burstable, or unmetered bandwidth before estimating savings.

Using a Hybrid Cloud Strategy

The decision does not need to be entirely private or entirely public.

Synology Cloud Sync can connect a NAS with public cloud platforms, allowing organizations to combine local control with external cloud storage.

A hybrid architecture might use:

  • Colocated Synology storage for frequently accessed files

  • Public cloud storage for application integration

  • Archive storage for rarely accessed information

  • A second backup destination for disaster recovery

  • Snapshot Replication between Synology systems

This structure allows businesses to place each dataset on the platform that best matches its access frequency, recovery requirements, and cost profile.

Calculate Total Cost, Not Storage Price Alone

A realistic comparison should include all expenses over three to five years.

For public cloud storage, calculate:

  • Storage fees

  • Retrieval charges

  • Request costs

  • Data transfer

  • Replication

  • Support plans

  • Expected growth

For a colocated NAS, calculate:

  • Synology hardware

  • Hard drives or SSDs

  • Warranty coverage

  • Rack space

  • Power

  • Bandwidth

  • Administration

  • Hardware replacement

The private NAS has a higher initial investment, but predictable recurring expenses may provide better long-term value for organizations with stable capacity and heavy retrieval activity.

Why Organizations Choose Synology

Synology combines private file storage, Synology Drive, Btrfs snapshots, Hyper Backup, Snapshot Replication, Active Backup for Business, Microsoft 365 protection, and centralized DSM administration. These capabilities allow organizations to build dedicated storage environments that support backup, collaboration, recovery, and hybrid cloud workflows while maintaining greater control over data placement and access.

A professionally hosted system can also deliver stronger power, cooling, physical security, and connectivity than a typical office server closet. Reduce cloud costs with private Synology storage solutions.

About Epis Technology

Epis Technology helps organizations design, deploy, and manage hosted Synology server environments in secure colocation facilities. Services include infrastructure assessments, storage sizing, RAID architecture, bandwidth planning, private-cloud deployment, backup design, disaster recovery, cybersecurity hardening, public cloud migration, and ongoing managed support. Epis Technology helps businesses evaluate cloud egress cost reduction opportunities and build private or hybrid storage platforms with predictable costs, reliable performance, and long-term scalability.

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