November 26, 2025 5 min read
After building and running a Ceph cluster for my homelab, I’ve gained valuable insights into the real-world economics of distributed storage versus traditional single-drive solutions. This analysis breaks down the actual costs per GB across different storage strategies in my setup.
My Current Storage Architecture
My homelab storage consists of three distinct tiers:
Ceph Cluster : 15 × 5TB OSDs across 5 nodes (3 OSDs per node)
Primary Backup : 20TB external drive for CephFS backups
Secondary Storage : 28TB external drive for expanded backup capacity
Each tier serves different purposes and has dramatically different cost profiles when you factor in redundancy and usable capacity.
Ceph Cluster Economics
The Drive Acquisition Story
Building a 15-drive Ceph cluster happened in phases, with costs varying significantly based on timing and sourcing:
Early Drives (Costco Special)
Quantity : 6-7 drives
Cost : $89 each (Costco special pricing)
Cost per TB : $17.80/TB
Later Drives (Amazon/Seagate Sales)
Quantity : 8-9 drives
Average Cost : ~$110 each (sale pricing)
Cost per TB : $22.00/TB
Most Recent Drive
Model : Seagate Portable 5TB (STGX5000400)
Cost : $109.99 (October 2025)
Cost per TB : $22.00/TB
Ceph Storage Math
Raw Capacity : 15 × 5TB = 75TB
Total Investment : ~$1,500 (averaging $100/drive)
Raw Cost per TB : $20.00/TB
With 3/2 Erasure Coding :
Usable Capacity : ~50TB (66.7% efficiency)
Effective Cost per Usable TB : $30.00/TB
Redundancy : Can lose 1 drive per erasure group
Performance : Distributed I/O across 15 spindles
Ceph Advantages Beyond Cost
Fault Tolerance : Automatic recovery from drive failures
Scalability : Add capacity by adding nodes/drives
Performance : Parallel I/O across multiple drives
Network Storage : CephFS accessible from any node
Snapshots : Built-in snapshot capabilities
Self-Healing : Automatic data integrity checking
Backup Storage Economics
Drive
Model
Purchase Date
Cost
Cost/TB
Current Usage
20TB
Avolusion PRO-X 20TB
June 16, 2024
$219.99
$11.00/TB
ZFS volume for CephFS backups
28TB
Seagate Expansion 28TB (STKP28000400)
November 21, 2025
$289.99
$10.36/TB
Planned as primary backup
Backup Strategy and Efficiency
The backup drives reveal something fascinating about my Ceph cluster’s real-world efficiency. That 20TB drive currently holds complete rsync backups of my entire 50TB usable Ceph capacity, which tells me I’m getting compression ratios of 2.5:1 or better. This isn’t just theoretical - it’s actual data from VMs, containers, and file storage that compresses remarkably well due to similar base images and redundant content.
My plan is to promote the new 28TB drive to primary backup duty while relocating the 20TB drive for off-site backup rotation. This gives me both local and remote backup coverage at an average cost of $10.68/TB - less than half the cost of the Ceph storage, but without any of the redundancy or performance benefits. It’s the perfect complement to the distributed storage: cheap, simple, and effective for disaster recovery scenarios.
Cost Comparison Analysis
Storage Type
Raw Cost/TB
Usable Cost/TB
Redundancy
Performance
Ceph Cluster
$20.00
$30.00
Built-in (3/2)
High (15 drives)
20TB Backup
$11.00
$11.00
None
Single drive
28TB Backup
$10.36
$10.36
None
Single drive
The Redundancy Tax
Ceph’s redundancy comes at a 50% capacity penalty, effectively doubling the cost per usable TB. However, this “tax” provides:
Automatic failover during drive failures
No data loss from single drive failures
No downtime for drive replacements
Performance benefits from distributed I/O
The Redundancy Tax vs Backup Value
The backup drives demonstrate why having multiple storage tiers makes sense. While Ceph’s redundancy comes at a 50% capacity penalty, the backup drives show the true efficiency of the cluster - 50TB of usable data compresses well enough that a 20TB drive can hold complete backups. This compression comes from:
Similar VM/container base images creating natural deduplication opportunities
Incremental rsync strategies that only backup changed data
File-level compression on the ZFS backup volumes
Real-World Storage Costs
Total Storage Investment
Ceph Cluster : ~$1,500 (75TB raw, 50TB usable)
Backup Drives : $510 (48TB total)
Total Investment : ~$2,010
Total Usable : 98TB (50TB + 48TB)
Blended Cost : $20.51/TB
Operational Considerations
Power Consumption :
Ceph: 15 drives × 8W = 120W continuous
Backup drives: Powered only during backup operations
Annual power cost difference: ~$100-150
Maintenance :
Ceph: Occasional drive replacements, cluster maintenance
Backup drives: Manual backup scheduling, drive rotation
Lessons Learned
1. Timing Matters for Drive Purchases
The $89 Costco drives versus $110+ regular pricing shows a 24% cost difference. Patience and deal hunting significantly impact total cluster cost.
2. Redundancy Has Real Costs
Ceph’s 3/2 erasure coding provides excellent protection but at a 50% capacity penalty. For homelab use, this trade-off provides peace of mind worth the cost.
3. Backup Drives Provide Excellent Value
Large external drives offer the best $/TB ratio and serve as an excellent complement to distributed storage for backup purposes.
4. Compression Is Your Friend
50TB of Ceph data fitting on a 20TB backup drive demonstrates the value of compression and deduplication in real-world scenarios.
Future Storage Strategy
Short Term
Configure 28TB drive as primary backup volume
Relocate 20TB drive for off-site backup rotation
Implement automated backup verification
Long Term
Monitor drive prices for Ceph expansion opportunities
Consider NVMe cache tiers for hot data
Evaluate backup retention policies based on capacity
The Real Story Behind the Numbers
Look, I’ll be honest - when I started building this Ceph cluster, I wasn’t thinking about cost per TB. I was thinking “this is cool distributed storage technology” and “I want to learn how this works.” The economics came later when my wife asked why I needed another 5TB drive.
Turns out the math is actually pretty interesting. Yes, Ceph costs me 3x more per usable TB than just buying big external drives. But here’s the thing - when one of those 5TB drives dies (and they will), I don’t even notice. The cluster just keeps running. Compare that to the heart attack I’d have if my single 28TB backup drive failed.
The $89 Costco drives were a steal, and I kick myself for not buying more when they were available. But even at $110 each, building this cluster has been worth it for the learning experience alone. Plus, there’s something deeply satisfying about having 15 drives working together as one big storage pool.
The backup drives? They’re the unsung heroes of this setup. That 20TB drive backing up my entire 50TB Ceph cluster shows just how well compression and deduplication work in the real world. It’s like having a safety net that costs $11/TB.
Bottom Line : If you’re just looking for cheap storage, buy the biggest external drive you can afford. But if you want to learn about distributed systems, have some redundancy, and don’t mind paying the “education tax,” Ceph is pretty amazing. Just don’t tell my wife how much those drives actually cost.
The real lesson here? Different storage serves different purposes. Sometimes you pay for convenience, sometimes for reliability, and sometimes just for the fun of learning something new. In my homelab, all three have their place.