Findings from the third annual Wasabi Global Cloud Storage Index
reveal enterprises across Asia Pacific, including Japan, Australia and
New Zealand, continue to experience budget overruns due to cloud storage
fees. In fact, 49% of end-user cloud storage spending goes to fees for
storage and networking, rather than actual storage used. The Wasabi
Global Cloud Storage Index surveyed 1,600 decision-makers involved with
their cloud storage purchasing, including 525 in Asia-Pacific (APAC);
250 in Australia and New Zealand and 200 in Japan.
These findings underscore a growing frustration with the traditional
cloud storage pricing model, where excessive fees - particularly egress
and data access charges - are causing IT and business delays for 50% of
APAC organisations. Digging deeper, APAC respondents say networking
fees, data management fees, data access and retrieval requests, and
egress fees are among the costliest.
"Cloud storage in APAC is at a critical inflection point with 63% of
organisations exceeding their budgets and nearly half of all spending
going toward fees rather than storage," said Andrew Smith, senior
manager of strategy and market intelligence at Wasabi Technologies, and a
former IDC analyst. "As organisations rethink their cloud strategies,
it's clear that reducing fees, improving performance, and ensuring
stronger security measures are key priorities for IT decision-makers
across the region as they face mounting financial pressures, along with
the need to support emerging workloads like GenAI."
Sustainability takes the lead in ANZ cloud storage decisions, but budget overruns and security concerns persist
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In Australia and New Zealand, sustainability emerged as the top
consideration for businesses when selecting a cloud storage provider -
marking a shift toward greener IT strategies.
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However, budget overruns and cloud storage fees remain a significant
challenge as cloud storage pricing models remain unpredictable,
contributing to rising costs across the region, resulting in 66% of ANZ
respondents exceeding their planned cloud storage spending in the past
year-a higher rate than the global average of 62%.
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Pricing remains the top driver of dissatisfaction among ANZ public cloud
storage users, reinforcing ongoing frustration with egress fees,
unpredictable billing models, and high cloud storage costs.
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Additionally, the report found that 68% ANZ organisations recover data
from public cloud storage at least a weekly for backup purposes,
increasing operational costs and adding to ongoing budget challenges.
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Despite the belief that deep archive data is rarely accessed, the
reality is that all ANZ organisations surveyed (100%) say they access or
retrieve archived data at least annually, with over half of them (64%)
reporting a weekly rate of access. Ultimately, one in six (17%) ANZ
businesses report negative operational impacts from cold storage
performance or access delays, reinforcing concerns over the efficiency
of traditional tiered storage models.
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Security remains a focus, yet less than half (48%) of ANZ businesses
currently use object lock, a key feature that prevents data tampering
and helps mitigate ransomware risks. However, another 48% plan to
implement object lock in the next year or beyond, signalling growing
awareness of its importance.
Over half of organizations in Japan exceeded their cloud storage
budgets last year, more than the global average, as users grapple with
excessive fees
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Budget overruns remain a perpetual challenge in Japan, with 63% of businesses exceeding their budget.
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Fees eat up nearly half (49%) of total public cloud storage bills for Japan enterprises, leading to budget overruns.
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A staggering 65% of Japan organizations say egress or other data access
fees associated with moving their data out of public cloud have delayed
IT or business initiatives. Much higher than the APAC average of 50%.
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Pricing is the top influence on "dissatisfaction" in Japan with their
current cloud storage providers, further illustrating the negative
impact of fees.
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Japan organisations are investing in a balanced approach to storage,
with 47% using a mix of traditional on-premises and cloud storage, in
line with the rest of APAC enterprises.
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Data protection capabilities is the #1 vendor selection consideration
when choosing a cloud storage vendor for Japan businesses, in line with
APAC organisations.
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Use of public cloud storage in Japan has resulted in data
security-related benefits for their organisation, with respondents
noting public cloud storage makes it easier to prevent and mitigate
unplanned data loss.
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66% of organisations in Japan say they recover data from public cloud
for backup and recovery purposes, at least monthly, lower than APAC avg
of 80%.
To view the 2025 Wasabi Global Cloud Storage Index in its entirety, please visit here.