What kind of redundancy do you use on your storage servers? I find the 1TB of storage at that price rather questionable.
We use protected cloud storage on all of our servers, not just our storage servers. Data is mirrored over a private network so data is not just stored on a RAID but two different physical servers to add extra protection from data loss.
We are able to achieve lower prices through various methods including maintaining our own network and servers, specialized software, large SATA disk arrays, and including less CPU and RAM than our other offerings.