In summary, data tiering is an efficient solution to cut storage and backup costs because it tiers or archives cold, unused files to a lower-cost storage class, either on-premises or in the cloud. However, to maximize the savings, data tiering needs to be done at the file level, not block level. Block-level tiering creates lock-in and erodes much of the cost savings because it requires unnecessary rehydration of the data. File tiering maximizes savings and preserves flexibility by enabling data to be used directly in the cloud without lock-in.