I used to run a local storage set-up, basically for less than my power bill used to be to do so, I now run remotely. As to what you store where, it all depends on your available bandwidth. Some people have no issues with 4K, others do, depends on your connection and server.
Google drive for 'business' customers has unlimited storage. A 'business' customer at it's most simple can mean you have a domain name which you associate with Google's services for mail etc. and get charged £6.60 per person per month bu Google for the privilege. Because clearly this would be unsustainable for Google, they say it is only unlimited if you have more than five users registered (and thus paying for) however they've never enforced this so you pay £6.60 + your annual domain costs and you have unlimited cloud storage.
It could be that as more and more projects (not just Plexguide) gain momentum to exploit this then they may start enforcing their policies but then again even with mass adoption by geeks it may still be such an insignificant dent in their margins that they don't bother.
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