For example, something that is too complex for your comfort level, a security concern, or maybe your hardware can’t keep up with the service’s needs?
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Backups. Cloud services like Backblaze B2 are so cheap for the durability they offer, it just doesn’t make sense for me to roll my own offsite solution with a Raspberry Pi at my parents’ house or something. Restic encrypts everything before it leaves my machine.
Password manager- it’s too important and it’s the thing that has to work for me to recover when I break something else. I’m happy to support Bitwarden with a few bucks a year.
Email- again, it’s mission critical and I have a habit of tinkering with things and breaking them. And it’s just no fun. The less I need to think about email, the happier I am.
Re backups, to be clear it sounds like you’re specific referring to offsite backups.
I run my own local backup server using syncthing for replication and restic for snapshotting, but I also send offsites to cloud storage (in my case gdrive).
I self-host all those things.
I just have two portable drives, and I bring one home from work at a time to run an rsync backup job.
That’s what “1” in the “3-2-1” backup strategy stands for, a true offsite backup (preferably continent where you do not reside) For “2” I would still deploy a local offsite at someone’s house for quick disaster recovery.
Downloading your 10TB data from B2 (or even requesting a tarball HDD from them) is costlier than recovering from an offsite backup facility within an hour’s reach.
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Because the assumption is there’s very little throughput. Storage isn’t really that expensive, but bandwidth is and Backblaze is only cheap if you aren’t trying to get at your data regularly. That’s fine for backups because hopefully you never need them.
EDIT: I should say that for an individual user, getting data out of Backblaze isn’t that expensive, but it’s more expensive than cold storage. I think they charge $.01 per GB transfered, so a 10GB movie would cost you about ten cents to stream. It would cost you $100 to recover a 10TB backup from Backblaze (though for a fee than can mail you some of that on a hard drive, I think).