Tracking usage between cloud and local storage involves monitoring how much data is stored in each location and how it moves between them. Cloud storage refers to data hosted on remote servers accessed via the internet (e.g., Dropbox, Google Drive), while local storage is data kept on physical devices like your computer's hard drive or a company server within your office or data center. Tracking means using tools to measure the volume of data residing in each place and the frequency/data size transferred during synchronization or backup processes.

For example, an IT department might use Microsoft OneDrive's admin portal to see how much data individual employees have stored in the cloud versus marked as "available online-only" (effectively local metadata pointers). Similarly, businesses using hybrid backup solutions like Veeam track how much critical data resides on their local network-attached storage (NAS) for fast recovery versus archived copies stored cheaper in Amazon S3 Glacier.

Accurate tracking helps manage costs (preventing unexpected cloud bills), ensures compliance with data residency rules, and optimizes storage tiers. Limitations include complexity when using multiple cloud vendors and local systems, requiring integrated tools; discrepancies can occur if partial files sync or caching isn't accounted for. Future developments focus on unified observability platforms providing clearer, consolidated views across both environments.