Data archiving services are increasingly vital for enterprises managing large volumes of data over extended periods. These services offer a cost-effective solution for storing and retrieving data while ensuring compliance and minimizing data loss risks.
According to a report by Markets and Markets, the global data archiving market was valued at $4.2 billion in 2020 and is projected to reach $9.4 billion by 2025, with a Compound Annual Growth Rate (CAGR) of 17.2%. Factors driving this growth include the escalating data generated by enterprises and the need to comply with data retention and privacy regulations. Cloud-based data archiving services are contributing significantly to market expansion.
The North American region is expected to dominate the data archiving market, while the Asia Pacific region, particularly China, Japan, and India, will experience substantial growth due to increased adoption of cloud-based services.
The cost of data archiving services for enterprise users varies based on factors such as data volume, retention period, level of service, and storage medium. Gartner's survey estimates the average annual cost for enterprise users at around $25,000 to $50,000 per terabyte of data archived. It's crucial for enterprises to assess their specific needs and collaborate with us as their service provider to determine the most cost-effective solution and pricing model.
The amount of data archived by an enterprise user depends on the nature and size of the business, as well as industry and regulatory compliance requirements. Regional banks typically archive between 50 terabytes to 200 terabytes of data annually, while larger international banks may archive several petabytes (1,000 terabytes) to over ten petabytes. International banks, operating across multiple jurisdictions, face more extensive regulatory demands and generate significant amounts of data, resulting in higher archiving costs.
Based on Gartner's estimates, archiving 1 petabyte of data can cost between $25 million and $50 million annually. This estimate is calculated by multiplying the cost per terabyte ($25,000 to $50,000) by the number of terabytes in a petabyte (1,000).
Data archiving is a critical investment for enterprises, and partnering with us can help optimize costs and ensure efficient data management while complying with regulatory requirements.