Backblaze B2 vs Self-Hosted S3: Which Saves More Money?

Backblaze B2 and self-hosted S3 (RustFS or MinIO) are two cloud storage options that have different pricing structures and capabilities. Backblaze B2 offers a simple pricing model with a flat rate of $0.00695/GB/month for storage, no charges for uploads, and free egress up to three times your stored capacity. After that, the cost is $0.01/GB.

On the other hand, self-hosted S3 offers more flexibility and functionality but comes with higher costs. The self-hosted option costs approximately $38 for 1 TB, $53 for 10 TB, $142 for 50 TB, $253 for 100 TB, and $917 for 500 TB, considering hardware amortization and operational costs over 36 months.

The crossover point between B2 and self-hosted S3 is around 7 TB. For most backup and archive workloads, B2's convenience and predictable pricing usually make it the more cost-effective choice. However, for active workloads with frequent reads and writes, self-hosted S3 becomes more economical around the same storage volume.

B2's egress (data transfer out) is free up to three times your stored capacity, with a $0.01/GB charge beyond that. In most backup and archive workloads, download costs are effectively zero due to the generous free egress tier. In contrast, self-hosted S3 has no egress costs at all since it uses your own network and bandwidth.

In summary, Backblaze B2 is ideal for simple, predictable storage needs at a low cost, especially for backups and archives. Self-hosted S3, while more expensive, offers greater flexibility, functionality, and potentially lower costs for active workloads with higher egress demands. A hybrid approach, using B2 for cold storage and self-hosted S3 for hot data, can also be an effective solution depending on the specific requirements of the workload.