Economics18 Aug 2026 · 7 min read

Bring Your Own Storage: Who Owns the Bucket, Who Sets the Rate

The vendor is not party to your storage contract, which is the whole point

By Kapardyn Engineering

Backup pricing comes in two shapes. One is a per-seat number. The other is a per-seat number plus an object-storage bill plus egress that becomes visible during a restore.

The second is not necessarily more expensive. It is unpredictable, which for an MSP is worse — you quoted the client a fixed monthly figure and the variance lands on you.

Egress is priced at the worst possible moment

Storage at rest is easy to model. Egress is not, because it is driven by incidents rather than by headcount, and incidents are exactly when nobody wants to be discovering a cost.

RESTORING 1 TB FOR ONE CLIENT
Data to retrieve1,024 GB
Egress, at a typical object-storage rate$0.09/GB
Cost of the restore$92
Charged against a fixed monthly client quoteno
Absorbed byyou
Ninety-two dollars is not the problem. Not knowing it was coming, and not controlling the rate, is.

What bring-your-own-storage actually changes

Under BYOS the backups land in a bucket you own, in your own cloud account. The storage contract is between you and your storage provider. The backup vendor is not a party to it.

Three consequences follow, and they are all structural rather than commercial goodwill. The rate is one you negotiated, and it is on a bill you already receive. Nobody can change it without telling you, because nobody else is on the agreement. And the margin on that storage stays on your side of the table rather than being resold to you.

It also settles a residency question in one move: the data is in an account you control, in a region you chose, which is a materially easier thing to attest to a regulated client than a vendor's regional claim.

WHO IS IN THE TRANSACTION
RESOLD STORAGE
Vendor buys storage and resells it to you
Egress rate set by the vendor
Rate can change at renewal
Discovered on a restore
Their contract
BRING YOUR OWN
Storage bought directly by you
Egress rate negotiated by you
Visible on a bill you already receive
Known before the incident
Your contract
What the platform charges is the seat, and that number is published. Storage is not bundled into it.

The trade-off, stated plainly

BYOS is not free of cost — it is free of markup. You take on a storage relationship: an account, a lifecycle policy, a bill to reconcile. For an MSP already operating in a cloud that is marginal effort. For one that is not, it is a genuine new responsibility.

The honest framing is that BYOS moves the storage decision to whoever is best placed to make it. If that is you, the model pays. If you would rather never think about a bucket, a bundled model is defensible — provided you have asked what a full restore costs, and got the answer in writing.

Two questions, any vendor

Who owns the bucket, and who sets the egress rate? Between them they determine whether a large recovery is a known cost or a surprise.

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