Historically, businesses had only one option for storing their digital files: a server or a computer located on their office premises.
There are cloud-based and hybrid file storage systems (both on-premises and cloud) available today, but how do you know which solution is right for your business?
Let’s take a look at the pros and cons of each type of file storage solution.
On-premises servers
An on-premises file server remains a viable solution for businesses with dozens or hundreds of office workers because it’s more cost-effective than cost-per-user cloud solutions.
Additionally, a server can perform other functions that a business may need, such as hosting business management software. Therefore, it may also make financial sense for a business to use a server if it will be performing more than one task.
It also removes the main drawback of cloud file storage: the time it takes to upload, download, and sync files.
Businesses like accounting firms, financial services companies, law firms, corporations with multiple departments, and healthcare providers generally benefit from on-site servers.
There are multiple options for financing the cost of a server depending on a company’s cash flow and fiscal situation: common financing vehicles include an initial capital expense or, over time, through a lease or loan.
Benefits of local servers
• All office users connected to the server can quickly and easily access and share files, making collaboration within the office seamless.
• There is no reliance on Internet service, so if the company’s Internet service is down, employees can still access company files.
• You can choose to set up a virtual private network (VPN) to securely access files over the Internet to make it easy for telecommuting employees or mobile staff to access company data.
• Files stored on a server don’t need to be synced across multiple devices, so employees always see the same version of a file.
• Company data is only accessible to people who have access to your office, which is important for sensitive or confidential information.
• Servers must be scalable if purchased and configured correctly. As your business grows, you can expand the storage and processing capacity of your server.
Disadvantages of local servers
• An on-premises server creates a perception of security: You believe you are in control of the server because it is physically located in your office. However, servers that are in a data center (in the Cloud) are usually much more secure. Offices can have a lot of foot traffic and the potential for many people to gain access to the server; cleaning crews, office visitors, and even employees can inadvertently cause damage. Companies often install their servers in a closet, in a back room, or even under a table. These are easily accessible to anyone who walks into your office.
• On-site servers typically lack multiple redundancies that protect against power outages, vandalism, or hardware failure. Files in offsite (cloud) data centers are typically stored on virtual servers that have redundant hardware, meaning a single hardware failure won’t cause your files to crash. For healthcare companies, even HIPAA compliant servers are available; electronic medical records can be stored securely in the cloud.
• As we’ve discussed in a previous article, you’ll need a reliable backup solution in case your server crashes, is stolen, or your office becomes unusable due to fire, flood, or other natural disaster.
Cloud-based file storage
“The Cloud” means third party servers that are located in data centers located in the US and around the world. Many different companies share space on these servers.
Files stored in the cloud are accessed over the Internet in different ways, depending on the type of cloud storage service you are using. Some cloud file services require you to use a web browser to access your files, and some support folder-level access so you can access your files through Windows Explorer or Mac Finder, the same way you find files. on your computer or on -premiseserver. Some even have apps to make it easy to access your files on a mobile device.
Many people have grown accustomed to consumer-grade cloud-based file storage services like Dropbox (the #1 service), Box, Google Docs, and Microsoft OneDrive (formerly SkyDrive).
These types of services work very well for individuals, but can have significant drawbacks for businesses, especially those with more than 10 active users.
For smaller organizations with 10 or fewer users, storing your files in the cloud can be very affordable because cloud services charge monthly fees based on the user; the number of users, the number of accounts and the amount of total data determine the price.
Also, if you choose to store some or all of your business data in the cloud, it’s important to download an archive of that data at least twice a year to protect against loss should the cloud provider go bankrupt or lose your data. .
Benefits of cloud-based file storage
• Low cost of ownership and maintenance – Low or no up-front costs, and no hardware to purchase, install, or maintain.
• Convenient monthly subscription-based service makes it easy to switch providers.
• Quick and easy to set up compared to on-premises servers and fairly easy to migrate from another file storage solution.
• Much more secure than storing servers in a typical business office.
• Easily accessible from any Internet-connected computer, tablet, or smartphone.
• Built-in redundancies: Most cloud providers have robust failover protocols and protection against business interruptions due to local power failures, natural disasters, or Internet connectivity downtime.
• Employees can sync files between multiple computers/devices.
Drawbacks of Cloud File Storage
• Employees must have Internet access to access their files. No Internet = no files (unless the file was previously downloaded to the employee’s computer). We recommend that businesses using any type of cloud service install a second (redundant) internet line from another internet service provider as a failover option.
• Upload and download speeds can get bogged down with large files like PowerPoint presentations, CAD files, or other media files.
• May not integrate easily, or at all, with other software systems in your company.
• Monthly fees become very expensive for organizations with tens or hundreds of employees or large amounts of data.
• All sensitive company data is placed on cloud servers outside of your direct control.
• You don’t know where your data is stored, exactly how you access it, whether it will be deleted on demand, or even if it’s being properly backed up.
• It takes time to sync files across multiple computers/devices, which means updates one employee makes to a file won’t be immediately visible to another employee until the file is updated on their computer. Sync times can vary from 5 minutes to an hour or more depending on the cloud provider and the size of the file being synced.
Hybrid file storage
Hybrid file storage systems combine features of cloud storage systems and local file servers.
Most hybrid solutions include a NAS device (a smart hard drive) or a thin server that sits on your office premises, as well as storage space in the cloud. Files are synced between the NAS device and the cloud server.
Hybrid solutions have most of the same advantages and disadvantages of pure cloud-based and local storage systems listed above.
With the right solution, you can minimize or eliminate the need to back up your data. However, we still recommend archiving data regularly, especially for those companies that are regulated.
How to decide which one is better?
There is no one best solution for every business, and with all the options and technology changing so quickly, it can be difficult to discern which file storage solution is right for you. We recommend comparing the functionality, features, and costs of each solution to decide which one is best for your business.
We can help your team assess and implement the best solution for your needs today (on-premises servers, cloud solutions, and hybrid clouds) and develop a plan that makes business sense for your organization going forward.