Solomon,
Storage is a commodity that we can purchase from multiple vendors. We will gladly pay a (reasonable) premium for the added convenience of tighter integration with Zoho CRM. But there's no way you can justify charging $1,440 for something that we can easily purchase from many other vendors for $1,400 less. This kind of pricing just forces us to develop alternatives - it's not even a question - and the alternatives are not really inconvenient.
Maybe my clients are unique, but they already use services like Mozy for backing up desktop computers into the cloud, and Dropbox for document storage in the cloud. So my clients have a general idea of how much they should be paying for storage. They would laugh at me if I told them to pay $1,440 / year for 5 GB of storage at Zoho.
$00.15 per GB per month - Amazon S3
$00.165 per GB per month - Dropbox
$00.50 per GB per month - Mozy
$24.00 per GB per month - Zoho CRM