Cloud storage as a rule is not yet cheaper than local storage. Example: 1TB of data stored on a small external drive: <$100. 1TB of data mirrored on two drives for redundancy: <$200. 1TB of data on AWS S3: $0.10 * $1000 GB = $100 per month. 1TB of archival data on AWS Glacier: $0.010 * $1000 GB = $10 per month. You can see that AWS Glacier comes the closest to the price of local storage, although it's meant only for archival storage that you don't want to retrieve, since data retrievals cost extra.
There are some advantages to storing your data in the cloud:
- You are doing your computing in the cloud, so you'll have to move your data there eventually
- You do not worry about maintaining infrastructure and making repairs when hardware fails
- If you are storing data for someone else and need to bill it as a service, cloud storage makes invoicing easy.