NAS vs Cloud Storage: Are Singapore SMEs Spending Too Much on Monthly Subscriptions?

Usually not, because most of what a Singapore SME pays for "cloud" isn't storage at all. A Microsoft 365 or Google Workspace subscription pays mainly for email, Office apps and Teams or Meet, and it already includes plenty of space: every Microsoft 365 business plan comes with 1 TB of OneDrive per user, and Google Workspace Business Standard includes 2 TB per user, pooled. A NAS rarely replaces those subscriptions. Where a NAS does save money is when a company is paying extra for a storage-only service such as Dropbox on top of Microsoft 365, or when it keeps several terabytes of video, CAD or scanned files that need fast access on the office network. Even then, the NAS is only one copy. You still need an off-site copy, patching and someone who owns it, and those costs belong in the comparison.

What does each option cost over three years?

The table models a 10-person office with about 4–10 TB of shared files. Cloud prices are as shown on each vendor's Singapore or global page on 8 Nov 2026; the NAS uses SourceIT list prices and the SP Group tariff.

Source: Microsoft Singapore business plan comparison page ("price does not include GST"), Google Workspace Singapore pricing page, Dropbox business pricing page, all fetched 8 Nov 2026; Synology DS925+ specifications (37.91 W in use); SP Group Q4 2026 tariff of 31.16¢/kWh including GST. CALC (illustrative): electricity assumes the DS925+ runs 24/7 at its "access" figure (about 332 kWh, S$103 a year); Synology does not name the drives it measured with, and real offices mix busy and idle hours. Usable capacity depends on the RAID type you choose. Prices change; ask for a current quotation.

Why doesn't a NAS replace Microsoft 365 or Google Workspace?

Because you would still need the mailboxes, Office licences and meeting tools. Dropping the subscription to save on storage only works if the business is willing to run its own email, which few SMEs should. In the table, the Microsoft 365 line already includes 1 TB of OneDrive for each of the ten users (10 TB in total, though per user rather than pooled). If your files fit there, a NAS adds hardware and admin work rather than saving money.

The fair comparison is therefore narrower: extra storage subscriptions and per-gigabyte cloud tiers versus a NAS. Many offices pick up these subscriptions one team at a time, which is the pattern we describe in our post on tracking IT subscriptions. A Dropbox team plan used only as a shared drive, alongside Microsoft 365, is the clearest case where a NAS can pay for itself within a few years.

When does a NAS clearly win?

• Large working files. Video, photography, CAD and BIM projects run to many terabytes and open faster from the local network than through a sync client. A 4-bay NAS such as the DS925+ holds up to 96 TB raw with 24 TB drives, according to Synology.
• Cost per terabyte. NAS drives cost roughly S$71–84 per TB on SourceIT's list (an 8 TB IronWolf Pro at S$567.50, a 4 TB HAT3300 at S$334.80). Cloud tiers bill monthly forever; drives are bought once and replaced every few years.
• Data you want on premises. Keeping the primary copy in your own office removes the overseas-transfer question for that copy.
• Internet outages. Files on the NAS stay reachable when the internet link or a cloud service is down, a risk we cover in when a global cloud service goes down.

When is cloud storage the better deal?

• Your data fits inside the storage already bundled with Microsoft 365 or Google Workspace.
• Staff work from home, client sites and phones more than from the office.
• Nobody in the company will patch the NAS, check its backups and replace failed drives.
• You have a single office, so an "off-site" NAS would need a second location you don't have.

A NAS is a copy of your data, not a backup of it. Budget for the second copy before you compare prices.

What are the hidden costs of running your own NAS?

The backup copy. Veeam's 3-2-1-1-0 rule calls for three copies on two media, one off-site, one immutable or offline, and zero errors in tested restores. A single NAS in the office satisfies none of the off-site or immutable parts. That is why the table includes a second, smaller NAS; a cloud backup target or tape (see whether LTO tape is still relevant) are the alternatives.

Security work. Internet-exposed NAS units are a documented ransomware target. In January 2022 the DeadBolt campaign encrypted more than 3,600 QNAP NAS devices, according to a Censys count reported by The Record; QNAP told owners to disconnect from the internet and turn off port forwarding and UPnP. On 29 October 2026 Synology warned of ransomware attacks on NAS units running outdated DSM versions, exploiting a flaw it had patched in December 2024. Hong Kong's HKCERT added that "installing security updates will not decrypt files already encrypted by ransomware". The fixes are routine but ongoing: automatic updates, no management page on the internet, VPN for remote access, and offline or immutable backups.

Power and protection. Electricity is small (about S$103 a year in the CALC above), but a NAS should sit on a UPS so a power cut doesn't corrupt an array mid-write. See what office IT equipment costs to run.

Drives and admin time. Drives fail and need replacing within the NAS's life, and someone has to watch alerts and test restores. Neither is in the table because both vary widely; ask yourself who will own this before you buy.

What does the PDPA say about cloud storage?

The PDPC's advisory guidelines on cloud services say the organisation remains responsible for complying with all PDPA obligations, and that a cloud provider processing data on its behalf is a data intermediary. The organisation must also deal with the Transfer Limitation Obligation if data is stored outside Singapore, and the guidelines say the contract should cover both the standard of protection and the overseas locations. A NAS doesn't remove the Protection Obligation, and a cloud backup of the NAS brings the transfer question back. This is a summary of the guidance, not legal advice; check the PDPC's guidelines for your case.

What do most SMEs end up doing?

A hybrid. Keep Microsoft 365 or Google Workspace for email, collaboration and everyday documents. Add a NAS when large shared files or a storage-only subscription justify it, and back that NAS up to a second location or an immutable target. Our NAS buying guide for Singapore SMEs compares Synology, QNAP and ASUSTOR models, and IronWolf vs IronWolf Pro vs Exos covers drive choice. If the worry is Microsoft 365 data itself, read why Microsoft 365 isn't your complete backup strategy.

A NAS is often the last server left in a small office. For the wider question of what should stay on-premise at all, read why SMEs are rethinking the traditional server room.

Buying in Singapore

For a small office, the Synology DS225+ is S$511.20 and the DS425+ is S$853.20; for heavier shared workloads the DS925+ is S$1,260 and the QNAP TS-464 8GB is S$1,080 (all listed 8 Nov 2026, drives not included). Synology HAT3300 drives start at S$160.80 for 2 TB. Browse the Synology NAS and QNAP NAS ranges. Prices change; ask for a current quotation. To size a NAS and its backup copy for your office, use Request for Quotation on the product page, call (65) 6978 3502, email Sales@sourceit.com.sg or use our contact page.

Frequently asked questions

Is a NAS cheaper than cloud storage for a small office? Only against storage-only subscriptions or large data sets. Microsoft 365 business plans already include 1 TB of OneDrive per user, so a NAS rarely saves money if your files fit there.

Can a NAS replace Microsoft 365? Not on its own. Microsoft 365 pays for email, Office apps and Teams as well as storage; a NAS only replaces the file-storage part.

Is a NAS a backup? No. It is one copy of your data. The 3-2-1-1-0 rule needs an off-site copy and an immutable or offline copy as well, with restores tested regularly.

How much electricity does a 4-bay NAS use? Synology rates the DS925+ at 37.91 W in use, which works out to about S$103 a year if it ran busy 24/7 at the Q4 2026 SP Group tariff, and less when drives hibernate.

Are NAS devices safe from ransomware? Not automatically. QNAP and Synology units have both been targeted; keep firmware updated, keep the management page off the internet and keep an offline or immutable backup.