In today’s technologically advanced world, cloud computing is becoming popular not only among individuals but in the business world as well. Cloud technology is changing the face of the business world, making it more relaxed and more comfortable to not only have data backed up on a secure server but also allow businesses to access their information from almost anywhere at any time. Gone are the days of just being able to access data in-house, even if it is sensitive data. With cloud technology, data can now be obtained on mobile devices, tablets, and also from home. Backing up data to the cloud is indeed changing the way businesses operate today. Â
When it comes to cloud technology, the question many seem to have is in regards to how they want their data backed up. With cloud computing, businesses now have the option to have their data managed by outside companies versus having unmanaged data handled in-house. There are benefits and disadvantages to both methods.
Managed Data: The Benefits
Cost – The benefits of having managed data is pretty straightforward. For small companies who don’t have a lot of data, they need to be backed up, choosing to have data backed up through a third party, such as Google or Amazon, maybe a financially smarter option. With managed data, companies are paying third parties to secure and manage their data. Depending on the company chosen, a monthly or yearly fee associated with it. By choosing to pay this fee, businesses will save on the cost of having to purchase software and servers to do the job in-house. These savings could amount to thousands or millions of dollars in upfront costs.
Maintenance – One other significant benefit to having managed data is the relief of not having to maintain it. When a business chooses to hire a third party for their data management, they are not only giving them the data to host, but they are also paying for them to maintain it. For a small company, it indeed is a blessing. It not only saves on the cost of IT personnel, but it also keeps on the stress of worrying if in-house servers are working correctly, along with having to update software continually.
Managed Data: The Disadvantages
Security – While having a third party manage a business’s data may save on overall cost, a company will need to factor in security. For a larger company, or even a smaller one that handles a large volume of sensitive data, the cost benefits of having data backed up off-site may not be worthwhile. When a company turns over their data to a third party, they are taking a risk. In a recent study done by Information Systems Audit and Control Association, more than 4500 high-level IT professionals in 83 countries including the United States reported that they were holding off on switching to managed data backup via a third-party cloud provider due to the security risks associated with it.
It is of course entirely dependent on the provider, and the assurances they can give businesses on their security. For many companies, having their most precious data handled by an external company may be a significantly more secure option than continuing to manage it poorly themselves.
Unmanaged Data: The Benefits
Cost – According to a recent study done by insurance provider Beazley Group, if a data breach were to occur for even a small business, it could cost upwards to $200,000. When one factor in that cost, many may find that the cost of having unmanaged data may outweigh the cost of having it managed via a third party. While having it managed in-house may require more upfront costs, the overall savings may be worth it. For larger companies mainly, managed data may be more expensive in the long run. While it may not cost millions up front, the monthly and yearly fees provided to a third party over time do add up sometimes to double what in-house would have cost.
Security – While there may be significant maintenance and personnel costs also involved in unmanaged data backup, studies have suggested that unmanaged onsite backup is more secure. With the proper security in place, it is harder for hackers and cybercriminals to break into in-house data servers. When it comes to sensitive data, the last thing anyone wants is for it to end up in the wrong hands.
Before any business decides if managed or unmanaged data backup is for them, they need to weigh the pros and cons of each. For some, the overall benefits may be in managed data whereas for others it may not. It depends on your business, and the data it needs to store.
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