A networked terastation is most definitely more expensive than a firewire or USB external drive, but that's comparing a Rolls Royce with a Yugo (remember those?) But they aren't that bad... here's a 1TB for $500
http://www.buy.com/prod/buffalo-tera...204853789.html
and if you don't have a network, you can simply buy a reversing Ethernet cable and plug it directly into the Ethernet port on your computer, or buy a $29 switch and plug it and your computer into the switch.
Most single external hard drives don't have fans or other effective cooling, so they run hot, and we have had a lot of failures (about 10 drives over the past 5 years). If your external drive fails, you're fucked, because there's no backup or redundancy. If a drive in your Terastation fails, you replace it and keep on going without a hitch.
The other issue is, there's an obscure bug in Windows that occasionally causes corruption of the directory in Firewire and USB drives (making the drive unreadable) if you are simultaneously reading and writing large files, and we've run afoul of that problem as well.
No question an external drive is cheaper, but I guess I look at it as insurance... what's it worth to you if your drive fails and you lose your data?
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