3 Dangers of In-House Document Storage

/ June 26, 2019/ Uncategorized/ 0 comments

A lot of auto dealers continue using local storage to store important company data. Many firms store critical files like legal contracts, warranty documents, mortgage files, and many other classified documents on the local hard drive. With the advent of online data storage, local storage should have gone the way of the dinosaurs. But the fact is that they are still being used by many firms. The reality is that storing files onsite is a recipe for disaster. In this post, we will highlight some of the dangers of onsite data storage, particularly for auto dealers.

The Risks of In-House Data Storage

In-house data storage is a dangerous practice that can put your data at risk. This is an unsafe way of storing your files. Here are just some of the risks auto dealers are exposed to when they store the data on site instead of online.

1. Risk of Unauthorized Access

Physical data can be accessed by unauthorized individuals. A person with admin root access can access files stored in the local media. Most of the security breaches are internal. They are carried out by personnel within a company. Files stored locally can be accessed and destroyed. They can be modified and changed without anyone knowing about it.

Data stored online is comparatively safer as compared to onsite data storage. Established online data storage service providers implement robust security features to keep the data safe. The risk of unauthorized access is minimal in case of online storage.

2. Risk of Data Loss

Apart from unauthorized access, data stored in local drives can also be lost due to many factors. Natural hazards such as flood or fire could wipe out the entire data stored online. There is also the risk that some ransomware may infiltrate the local PC encrypting all the files.

Last year, the damage due to ransomware had exceeded $8 billion. The data of thousands of companies were held at ransom by cybercriminals. Companies had to pay hundreds of dollars to get access to internal data. Some even lost all the data due to the attack. The risk of a ransomware attack on data stored online is minimal.

3. High Costs

Auto dealers that store data on local site will also have to incur a high cost. Maintaining data servers is costly. IT staff must be employed to look after critical files. Moreover, hardware and software need to be updated regularly to ensure total protection of the files. The costs of maintaining files on site are much greater as compared to storing the files online.

The above are the three main dangers of storing files in the house.

Just as you shouldn’t put all the eggs in one basket, you should never make the mistake of storing files in one place. The risk of losing critical company data is greater if you keep all the record in the house on local servers. You should consider signing up for online cloud solutions for a cost-effective and convenient way to store files. This will save you a lot of costs and hassles in the long run relating to data storage.

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