Data Backup | Network Doctor

Is Your Internal IT Team Backing Up Your Microsoft 365 Data?

Ward Vogt — Wed, 09 Jun 2021 13:53:42 +0000

Is your business using Microsoft 365? If so, you’re one of 200 million monthly active users leveraging the productivity, collaboration, and security tools within the cloud suite. But how are these platforms being managed within your organization? And who’s backing up all that data? Many people assume platforms like Microsoft 365 provide automatic backups – but this isn’t the case. The best way to ensure your data is safe is through additional backup and recovery planning. Network Doctor backup solution for Microsoft 365 provides an all-in-one backup, restore, and expert solution that covers Exchange, OneDrive, SharePoint, and Teams.

Why You Need Additional Backups for Microsoft 365:

Common SaaS Data Backup Misconceptions

Microsoft advises using a third-party backup solution to protect against deletion, app outages, human error, ransomware attacks, and complications from inactive licenses. 1-in-3 companies reported losing data stored in cloud-based applications and 60% of small firms that experience a major data loss incident close within six months. Why are the figures so high? Many businesses operate under false assumptions when it comes to SaaS platforms.

Here are some of the most common:

File Sync is a Replacement for Backup
- Though Microsoft OneDrive creates a second copy of files and folders, they should not be used as a replacement for a backup. File syncing services fall short of true SaaS backup solutions because:
  - If a file is deleted, all older versions are deleted as well
  - Large restores are time-consuming and a largely manual process
  - Backup and recovery is left in the hands of your company’s end-users
SaaS Applications are Always Available
- Unfortunately, outages do occur. When businesses can’t access important business data, revenue and productivity are negatively impacted. Having independent backups will ensure that you will still have access to essential files when an outage occurs.
Microsoft IS Responsible for Your Backup
- SaaS providers don’t take responsibility for restoring data if you lose it. Microsoft calls this the Shared Responsibility Model for data protection, which is why Microsoft recommends a third-party SaaS backup in its user agreement.

How Network Doctor Covers Your Microsoft 365 Data

Loss of data and time are the two major issues when recovering Microsoft content. If an employee accidentally deletes a critical document, Microsoft will not be able to recover it. Even though the files are within the retention period, getting them back can be costly and more time-consuming than you may think. An independent backup is required to give you the ease of mind that your data is constantly being backed up. Network Doctor backup solution covers:

OneDrive – All files and folders with file structure intact
Contacts – All contacts (excluding photos)
Calendar – Events, attachments, and any calendars owned by users
Mail – All emails, attachments, notes, and folder structure
Microsoft Teams – Files, conversations, and calendar meetings in the Microsoft Teams public channels
SharePoint –
- Folder structure
- Document libraries and sets
- Primary, custom, group, and team site collections
- Custom generic site lists, site assets, templates, and pages

If you experience a ransomware attack within your business and you don’t have a backup solution, you may not be able to recover your content. This could lead to losing valuable business data, but also a large sum of money to cyber criminals with no guarantee that they will give you back your data.

Though Microsoft 365 makes collaboration easier, protection and management are still a major challenge. Recovering important files is extremely costly and can often take much more time than your business can afford. Whether you’re losing time or data, the impact will still be significant. Having a secure solution in place can help prevent this. Having an additional backup solution can help protect your business and all of its data. If you want to know more on how it will benefit your business go contact us or sign up for a free consultation.

The post Is Your Internal IT Team Backing Up Your Microsoft 365 Data? appeared first on Network Doctor.

What Business Executives Want to Know About Cyber Risk

Ward Vogt — Thu, 08 Apr 2021 19:34:48 +0000

Who should you call first after you’ve had a data breach?
What should be included in a cyber attack communications response?
How can we make sure that everyone knows their role in communicating about a data breach?
How does cyber insurance help?
How do insurance companies determine coverage for cyber attacks?
How can you be sure that you have adequate cyber insurance coverage?
How do assess your risks?
How much does cyber insurance cost?
How can you get better rates on cyber insurance?
Why do companies buy cyber insurance?
What is usually covered by cyber insurance?
Why would a company need cyber insurance to cover PR services?
What is usually NOT covered by cyber insurance?
Are there reasons to NOT pay a ransom?
What else could happen if we don’t pay a ransom?
What businesses and industries are the favorite targets of cyber criminals?
Have cyber threats increased in response to the COVID-19 pandemic?
What’s the first step you should take to prevent cyber attacks from happening in the first place?
What’s the purpose of a security assessment?
What’s the best way to approach cyber security?
Do you need to pay a ransom if you have a good backup?
Who’s responsible for backup for data in the cloud?
What are cyber forensics?
What can you do to guard against internal threats?
Are there other internal risks to think about?
How do you lessen the risk that employees will fall for social engineering?
What’s your advice to business leaders about managing cyber risks?
What’s your advice to business leaders about managing their reputation after a cyber attack?
Has COVID-19 made businesses more susceptible to cyber attacks?
What’s the best thing businesses can do to protect against cyber threats?

Who should you call first after you’ve had a data breach?

Immediately notify your IT team, local and federal law enforcement, your insurance carrier, your lawyer, and your communications specialists in the event of a major cyber security incident. A major incident would be something like a ransomware attack that locks up all of your computers and you’re instructed to pay an amount of money, such as bitcoin, to have them unlocked.

Notify the Attorney General’s office if the cyber attack compromises personal identifiable information, as in the event of a Business Email Compromise (BEC).

Depending on the type and severity of the cyber incident, you may need to engage cyber forensics specialists to preserve evidence and investigate what happened. Your IT team should notify you if this is something they recommend.

What should be included in a cyber attack communications response?

You should have a response plan, and a response team that acts like air traffic control, where there are a few people in the tower and thousands of planes trying to take off and land, all while navigating through bumpy skies. The people in the tower are going to direct traffic and deploy the messaging.

Your response team is going to first acknowledge what has happened. That’s not admitting any responsibility or guilt, but acknowledging that something happened so you can de-escalate anxiety. You would contact your top-tiered clients. HR will play a part. Everyone needs to know how to reach each other, starting with the executive team.

How can we make sure that everyone knows their role in communicating about a data breach?

Create a communication plan and detail what you’re going to say, and how you’re going to say it, to both internal and external audiences. Think of your communications plan as your Go-Bag. Imagine a gym bag that is immediately accessible. You open your Go-Bag and there you have your top-tier people that need to be notified and by whom, and how it needs to be done.

Your Go-Bag also contains “Scenario Plates” for situations that you’ve already thought through. Scenarios are different ways that you can be attacked. Each scenario has draft statements and protocols in place that you can deploy as quickly as possible with minimal edits.

How does cyber insurance help?

A small bakery with annual revenues of about $450,000 had a ransomware attack on their kitchen. It locked down the entire kitchen and turned on the ovens with the demand, “Either pay us or we’ll burn the place down”. The insurance company paid the $75,000 ransom and the cost to the business was the $4,500 premium.

If you walk in the door one morning and flip on your computers and you can’t do anything, you’re out of business — and maybe out of business for a month before everything can get fixed.

Cyber insurance can help cover the cost of a ransom payment, getting you back in business, forensic analysis, etc. depending on your specific policy.

How do insurance companies determine coverage for cyber attacks?

Carriers are going to ask questions about what you’ve done in preparation to proactively prevent a cyber attack.

Anything that you can identify that you have in place, including policies and procedures, will help in the placement of cyber coverage.

How can you be sure that you have adequate cyber insurance coverage?

You don’t know how much coverage you’re going to need until you have an incident.

People ask, “How much cyber insurance coverage do we need? What are the limits we need to purchase?” And that’s an individual personal decision. Our question back to them is, “What’s your risk tolerance? How much are you willing to assume internally? How much can you reasonably and comfortably assume?”

How do assess your risks?

Think of the data that you’re storing and the implications to your business if it was stolen or exposed. A situation that exposed personal information is a much different risk compared to a situation where banking information is compromised.

At the same time, you have to set in place barriers that will minimize risks. Cyber criminals have, for the most part, figured out what they think you can pay in ransomware. If they can figure that out, you can figure that out, and it should be a component of your risk assessment.

How much does cyber insurance cost?

The premium is generally based on your industry, your specific operations, and on your revenue.

For example, a manufacturing company with annual revenue of $25-30 million dollars could anticipate premiums of anywhere between $6,000 to $7,000 a year for $1 million in coverage. They could also consider a $3 million or a $5 million option.

What matters is your comfort level, what information you store, and your comfort level with risk. It’s a cost-benefit analysis that’s different for every company, so there isn’t a right or wrong answer.

How can you get better rates on cyber insurance?

It helps significantly if you can demonstrate what you’ve done to become PCI-compliant or HIPAA-compliant, or that you have put specific controls in place like multi-factor authentication.

A lot of times the insurance company will do a dark web search of your key individuals and provide a report on what they find.

Why do companies buy cyber insurance?

There was a company that worked 100% for the US Department of Energy and Department of Defense. One day this company was contacted by the Pentagon and the FBI, and was informed that the Chinese government had been in their system monitoring every keystroke for the last 14 months.

The company had a small crime coverage on their general liability policy that paid $10,000. Fortunately, they also had other coverages that eventually paid the claim after two and a half years.

This company now buys cyber coverage.

What is usually covered by cyber insurance?

Coverage depends on the policy, its conditions and coverage terms. Some policies are written broadly to cover costs for legal, communications, and IT services. Some will pay for loss of revenues. Some will pay for reputation management.

It’s not uncommon for many general liability and crime policies to have a little bit of cyber coverage inclusive in them. But this creates a false sense of security because, a lot of times, those coverages are minimal and have exclusions.

Why would a company need cyber insurance to cover PR services?

A cyber attack could be the catalyst for an acute business disruption that puts the company’s credibility at stake. When public confidence has been shaken or lessened, the first thing people do is to distance themselves from the entity that they think is possibly toxic.

That puts deals on hold. Once people start backing away, calls aren’t returned, and negative sentiment grows, the business starts hemorrhaging.

That’s why crisis management services may be necessary — to manage the situation before it gets that bad.

What is usually NOT covered by cyber insurance?

Depending on your policy, incidents caused by social engineering where employees volunteer to participate – knowingly or unknowingly – may not be covered.

A manufacturing company learned about this when one of their major customers was hacked and changed the routing codes for making payments. The company received some compensation for the redirected money, but it didn’t cover the entire amount.

Are there reasons to NOT pay a ransom?

If you pay a ransom to a foreign entity that has been designated by the Department of Treasury’s Office of Foreign Asset Control (OFAC) as a “Malicious Cyber Actor,” paying a ransom could be considered enabling the criminals, and thus a federal crime.

Here’s the OFAC’s memo: Advisory on Potential Sanctions Risks for Facilitating Ransomware Payments

What else could happen if we don’t pay a ransom?

A manufacturing company with annual revenues of about $45 – $50 million had a ransomware attack. The ransom was for $200,000 and they decided not to pay because they thought they could restore from their backup systems.

Unfortunately, they found out that their backup systems weren’t up to snuff and operations were down for some time. By the time they got back up and running, their total cost was about $250,000. They didn’t pay the ransom, but the event impacted them.

This company did not have cyber coverage at the time. Had they had it in place, it would have paid for a good portion of that.

What types of businesses are the favorite targets of cyber criminals?

The top industries that are being targeted are government, finance, technology, manufacturing, and healthcare…though it can happen to anyone.

Nearly half of all cyber attacks hit small to medium-sized businesses. These companies don’t have the technology or the policies and procedures in place to mitigate attacks. Mom-and-pop shops are being targeted more than ever and an average ransomware payment is between $75,000 and $200,000.

Have cyber threats increased in response to the COVID-19 pandemic?

Ransomware attacks have increased 85% in the last eight months. Phishing attacks have increased over 600% since COVID hit because the nefarious actors are finding it easier to access many companies.

This is going to continue to increase and grow even greater.

What’s the first step you should take to prevent cyber attacks from happening in the first place?

You first have to acknowledge the risk and commit to spending resources on prevention. Prevention includes changing internal policies and procedures that are too often seen as inconveniences. Companies sometimes err on the side of making things easy rather than making things secure, but there has to be a balance.

Then have a security assessment done to get a clear picture of where your vulnerabilities are, so you can make educated decisions regarding your security posture.

What’s the purpose of a security assessment?

Security needs to be evaluated and measured against best practices to uncover bad habits and routines that actually create security vulnerabilities that increase risk.

An assessment identifies those vulnerabilities so that systems and processes can be introduced to lessen the risk. One of those processes, for example, could be to detect intruders. It can take 200-300 days for a network intruder to be discovered if threat detection tools and processes aren’t in place.

What’s the best way to approach cyber security?

Cyber security is all about layers and putting as many of the right layers of security between your people, the data you’re trying to protect, and the bad guys. You should have as many layers as your risk tolerance allows.

For every layer, there’s a cost so you have to justify those costs and compare them to the costs that you would have if you had a cyber event.

Do you need to pay a ransom if you have a good backup?

Your backup isn’t insurance against a cyber attack but you need to be confident that you can restore operations from your backup in the event that a cyber incident happens that steals or corrupts your data. In fact, if your backup system isn’t architected properly on the front side, the bad guys will encrypt your backups as well.

If you’re following best practices, there’s a gap between your live production data and your stored data.

Who’s responsible for backup for data in the cloud?

Resources in the cloud create a bit of a blind spot. There’s an assumption made that your cloud provider is backing up and has some restore plan in place, but for the most part, that’s not the case.

The obligation still is on the company who owns the data.

What are cyber forensics?

Cyber forensics groups are typically a third-party that will piece together how a cyber attack happened. They’re going to use log files and timelines and whatever documentation you have to piece together exactly what happened, how long the bad guys were in the system and if they sent any data off-site. That helps to figure out what obligations to notify individuals about the exposure of their personal or corporate data.

As soon as you declare that a breach has occurred, you should consider a forensics team because you need to know, for example, if a ransomware attack is covering up the tracks of someone who’s been in your network for a long time and may have been taking data and trying to get into other areas of your network, or even your customers’ or vendors’ networks.

What can you do to guard against internal threats?

The goal of IT is to provide the services your employees need to stay productive and do their work uninterruptedly, and that means having access to information. It’s very important that the company has very clearly defined internal procedures for both HR and IT so that everyone understands who gets access to specific data.

Are there other internal risks to think about?

Combined threats are attacks where an outsider attacks you through one of your own employees, usually through social engineering. Social engineering is very effective because it plays on our human nature to want to respond and communicate.

We can put all kinds of systems to make it very difficult for that person to do the wrong thing, but they have to receive email and they have to use the internet so it’s impossible to totally shield them.

How do you lessen the risk that employees will fall for social engineering?

User education is key to getting every employee trained and aware of what a phishing attack looks like, what links and attachments on an email shouldn’t be clicked, etc.

Employees need to be more aware and more savvy of what’s going on and how they can be manipulated with social engineering scams.

What’s your advice to business leaders about managing cyber risks?

Cyber threats are true significant risks that many people underestimate. We never tell people they need to buy insurance coverage — our objective is to help them understand their risk and then help them figure out the best way to mitigate it.

You need to know this is a serious significant risk that is continuing to grow. Every single week, it’s getting more and more prevalent. So, just be aware of that and manage it the best way you can. Sometimes, that’s insurance. Sometimes, it may not be, but it absolutely is how you manage your network and how you protect it.

What’s your advice to business leaders about managing their reputation after a cyber attack?

Treat your reputation like you treat your car. You want to get there, and you want to get there safely. So, don’t wait for the engine lights to come on. There are some preventative things you can do and don’t always think it’s going to happen to somebody else. Think ahead.

Has COVID-19 made businesses more susceptible to cyber attacks?

We are in the midst of the worst pandemic the country has seen in a hundred years and it’s not going to end soon. It’s a situation where your business has had to think what am I going to do to just survive? How am I going to make it to the next payroll? And things like cyber security are just not on people’s minds right now, understandably so.

You’re distracted. You’re not paying attention. Get your guard back up and don’t let yourself be a victim.

What’s the best thing businesses can do to protect against cyber threats?

Increase your security posture. Make sure you’re using technology like multi-factor authentication and that you’re using endpoint security based on AI. Use email protection based on AI that takes information from different pieces of your system in order to identify a threat ahead of time.

The post What Business Executives Want to Know About Cyber Risk appeared first on Network Doctor.

Pros and Cons between Cloud and On-Premise Solutions

Ward Vogt — Thu, 08 Apr 2021 10:49:03 +0000

What is better: on-premises or cloud? Many established companies wonder if it’s worth it to transition out of their on-premises technological infrastructure and move on to the cloud. In contrast, several newer companies wonder if they should invest their early capital in on-premises systems. To choose which option is right for your company, you need to be aware of the differences between on-premises and cloud-based services and infrastructure. There are several elements that go into on-premises and cloud systems. To narrow it down, you should focus on the differences between two core elements to your solution: storage and software. Both storage and software are vital to a company’s ability to function day-to-day. As such, there are several cloud and on-premises offerings for storage and software applications.

1. Cloud Storage vs. On-Premises Storage

Choosing to store your data on external servers or in-house servers is a major decision that companies must consider. As you look at the pros and cons of on-premise and cloud storage, you should be knowledgeable about their most important qualities.

ADVANTAGES OF CLOUD STORAGE

One of the primary ways the cloud interacts with your company is in the way it stores data. Unlike an on-premises servers with storage, cloud storage uses external servers managed by another company. A primary function of any business is the ability to store data in servers. After all, servers are the lifeblood of your organization. They store your information, connect your employees and allow you to connect with others around the world. In the past, on-site servers were the only options available to you, but now, cloud-based servers are a viable option as well. Cloud storage is a great option for your company because it can:

Reduce IT staff’s responsibilities: Being managed by another company, your IT staff doesn’t need to worry about installing new software patches or updates, freeing up their time for other tasks.
Eliminate capital expenses: While on-premises storage is considered a capital expense, cloud storage is considered an operational expense. Typically, on-premises storage requires a large initial investment to purchase equipment and install it in the office however cloud storage is maintained externally without the need for capital investment. Instead, companies only need to pay an affordable monthly subscription.
Adjust to your budget: To help companies keep their initial costs low, organizations regularly pay for cloud storage on a month-by-month basis. No matter if you’re scaling up or scaling down, most cloud-based storage companies can adjust their prices to meet your budget. Additionally, cloud storage features can be adjusted, added, or left out of plans altogether. This sort of flexibility is great for companies who expect change and don’t want to get locked into paying for services they don’t need.
Perform regular data backups: The cloud offers easier data backup than on-premises servers ever could. Cloud-based servers give users peace of mind by allowing business-critical data to be restored in the event of data loss. Companies cannot risk the types of damages and loses that result from failing to secure their data.
Adjust to your company’s needs: Cloud-based storage is built to scale. Need a few extra terabytes of data to store more data? Simply upgrade your plan with a click or two. Unlike a company’s servers that would need to have new hardware installed, cloud-based servers can quickly be expanded to meet the needs of your company.

WHY CLOUD STORAGE MAY NOT BE THE BEST OPTION

Though there are several benefits to using the cloud for your storage needs, it also comes with some drawbacks. Cloud storage may not be the best choice for your company because:

Internet determines user experience: When you use cloud storage, a fast and reliable internet connection is a must-have. A redundant Internet connection should also be considered if a majority of the workload will be hosted in the Cloud. For those who need to work quickly, a slow internet connection can provide a horrible user experience while they access your cloud servers.
Costs can balloon with little warning: The rapid scalability of cloud storage, while an advantage listed above, can also be a costly determent if left unmanaged. Cloud services are consumption models, so the more storage your Company requires, the higher the monthly cost. Companies should adopt policy and process to avoid the surprise of a costly invoice. A single point of contact should be identified within the Company, one who is accountable for the Cloud relationship and lap-lanes should be established for consumption with anticipated cost increases when lap-lanes are exceeded.
Access is based on connection: A downside of relying on the internet to store your files is that an internet outage can totally knock out your access to important files. Losing access to your data during a connection outage can delay your operations and make it impossible for some staff members to be productive. While the reliability of the internet has come a long way over the years, companies need to be confident in their connection before they switch to cloud storage.
Litigation – search warrant: If your company is the focus of an investigation, law enforcement could issue a search warrant to your cloud supplier. Forcing access to your Company storage without your consent to search for artifacts that support an investigation. Electronic materials that are strategic to the Company operation, may not be appropriate for Cloud storage. Companies should have written guidelines and acceptable use policy to accompany the cloud storage service
Data is less secure: Whenever you work with a cloud storage company, you are entrusting the management of your data to another party for them to manage and keep secure. Whenever an outside-party is trusted with your company data, you run the risk of unauthorized personnel accessing it. To avoid this, you’ll want to ask about security practices and procedures of the Cloud company and how they encrypt your data while it’s in transit and at rest.

ADVANTAGES OF ON-PREMISES STORAGE

Unlike cloud storage, on-premises storage relies on infrastructure at your Company’s brick and mortar office to manage your data. You’ll own all of the equipment and you will be responsible for the lifecycle management. As you might guess, there are several pros and cons of on-premises solutions for data storage.

Though cloud-storage has been all the rage lately, some companies still believe that on-premises solutions are best suited for their business needs. For example, many enjoy the greater security that on-premises solutions and storage give their data. On-premises storage is a great option for your business because it can:

Operate without internet: One of the major upsides to on-premises storage is that it doesn’t require users to have an internet connection to access data. Though most businesses rely on the internet to conduct business, there’s always a fear that the loss of a connection could harm productivity and make it impossible to access crucial data. On-premises servers will provide you with an internal network that is accessible anytime, no matter your internet connection.
Lower monthly internet costs: If your business doesn’t rely on the internet or cloud-based services, you may not need to pay for such a high-speed connection. For those with on-premises storage, the need for a strong connection with fast download speeds is reduced even further. Based on your needs, you may not have to pay for a more expensive internet plan if you don’t have to access the cloud to view files.
Provide greater security: Unlike cloud-storage, which is more vulnerable to third parties and prying eyes, on-premises storage is completely restricted from anyone other than authorized personnel. On-premises servers are not accessible to those outside the network, as they are not storing the data online. For companies who handle sensitive data, like those in the financial industry, on-premises storage may be a preferred option.
Offer control over server hardware: Some companies enjoy having dedicated servers within their building to handle all their needs. Instead of having to ask a cloud storage company to upgrade their storage plan or add new features, the company can simply do the upgrades themselves. Potentially, being able to modify the server’s hardware can give savvy companies greater flexibility and customization for their storage needs.

WHY ON-PREMISES STORAGE MAY NOT BE THE BEST OPTION

Despite the many advantages that come with on-premises storage, there are some drawbacks companies should be aware of. On-premises storage may not be the best choice for your business because it can:

Require extra IT support: If you decide you want to use on-premises storage, you’ll also need to have IT staff to maintain and manage your servers. This could mean you have to hire new staff members or devote more of your current staff’s time to maintaining the servers. This extra support can add to your costs and reduce the efficiency of your IT department as they will have increased responsibilities associated with the on-premises servers.
Adherence to industry compliance: If your Company operates within a regulated industry such as Finance or HealthCare, the responsibility to abide by the governing regulations will fall squarely on your Company as you are the owner and operator of the servers and on-premise storage. Compliance can require the attention of many employees, additional money for outside audits and potential fines if the infrastructure is found to be out of compliance.
Increase maintenance costs: Along with the initial capital investment required to purchase servers and other hardware, you’ll also need to continue to buy hardware, software and licenses to upgrade the system or repair it. Oftentimes, a piece of hardware will malfunction and need to be replaced. Additionally, in order to realize the most from your server investment, you will want to upgrade your equipment, which will likely be annually (at least), and will require an investment of more money.
Require a greater capital investment: When you first set up on-premises storage, you’ll have to invest a significant amount of capital to purchase the servers and other pieces of hardware to get it running. For companies just trying to get off the ground, this level of capital investment can be a huge disadvantage. Along with purchasing the equipment, you’ll also need to devote time and money to make sure it’s properly installed.
Increase the risk of data loss: Data is the backbone of your business. Losing it can be crippling, both for your efficiency and your reputation. With on-premises storage, a malfunction in the system or a compromised system held for ransom can cause you to lose your data permanently. While a cloud-based system will keep your data backed up, on-premises storage systems have all the data stored on an internal server, meaning you assume a greater amount of risk. A best practice for on-premise storage, to avoid the loss of data, is to include an off site backup service that replicates the data to another site or media.
Limit your company’s ability to scale:If your company scales up and needs more storage space or other capabilities, it’s more difficult to scale your on-premises servers quickly. Unlike cloud-storage, where companies can simply pick a more expansive plan with a click, on-premises storage requires you to install new hardware and devote manpower to building the new systems.

When you are comparing your options of on-premise and cloud storage, make sure to weigh the pros and cons of each. As you are selecting your provider for the services, ask the right questions to make sure you get the best option for your organization.

2. Cloud-Based Software vs. On-Premises Software

Is on-premises or cloud better for your business? Whenever a company looks to add new software to their business, it’s important for them to know about whether cloud computing or on-premises software is a better option for their needs.

ADVANTAGES OF CLOUD-BASED SOFTWARE

If you’re interested in cloud-based software, you’ll be happy to know that there are plenty of advantages to using it. Some of the top benefits include:

Affordability: Generally, costs are lower for cloud-based applications. Instead of having to pay a large licensing fee upfront, you’ll have much lower monthly costs. Often times, these monthly costs take the form of subscription fees. Along with the lower initial costs that make them more affordable, the companies offering these subscriptions often include maintenance and support, saving you manpower and the financial cost of having to troubleshoot problems yourself.
Ease of deployment: One of the biggest advantages of cloud computing is its ability to be deployed quickly without long installation processes. Customers of cloud software vendors will be able to start using the vendors’ application within minutes. Quick deployment gives companies an edge over the competition, and as such, is very popular among competitive companies.
Management services: One major aspect of cloud computing is the management services that vendors will typically offer clients. Instead of having to host the software or purchase hardware themselves, a customer can work with a vendor who will take care of it all externally, freeing up staff and reducing costs. The business won’t ever have to worry about upgrades or network monitoring, as the vendor will manage it all.

WHY CLOUD-BASED SOFTWARE MAY NOT BE THE BEST OPTION

As you can see, cloud-based computing has several benefits. However, before you sign up for it, there are a few disadvantages you’ll need to be mindful of, including:

Long-term costs: One drawback to cloud-based software is that, in the long-term, subscription costs can end up costing more in total than if a company would have paid for a licensing fee from the very beginning. This is especially true if your organization does not rely on the latest version of the software. Cloud-based software provides the latest version to the user and those development costs are reflected in the monthly subscription.
Less flexibility: Flexibility and customizability is often an issue for companies that use cloud-based software. The suppliers that provide software to companies via the cloud often don’t include widely customizable options. All consumers are provided the same off-the-shelf application. The service is often designed for the industry rather than the specific needs of a company, meaning that customers may not receive a service that is convenient for everything they do.
Security concerns: Like the security issues that affect cloud storage, cloud software also has comparable problems with security. Though security has gotten better, the cloud can still be hacked into by outside forces that look to extract data from these online programs. If you go with the cloud, seek out suppliers who support single sign-on and multi-factor authentication. Onboarding / offboarding processes should be adopted to manage employee access via a common company directory server.

ADVANTAGES OF ON-PREMISES SOFTWARE

On-premises software comes with advantages that are sure to provide value to your business. The following are some of the top ways on-premises software can be of assistance:

Greater customization: Since you’ll handle all of the on-premises software yourself, you’ll likely be able to customize it much more than if you were subscribing to a cloud-based system. If your company has niche needs that aren’t regularly covered by options in the industry, then on-premises software may be right for you.
License purchase versus subscription: licensing models for premise systems are usually tied to the host hardware vs. the employee. A company has greater discretion for reallocating licenses within this concurrent seat model. It is usually a best practice to purchase 10-15% more licenses to accommodate growth during the lifecycle of the platform.
Greater security: Better security is commonly cited as the main reason businesses stick with on-premises security. Like with storage, it’s less likely that anyone will be able to access your programs and siphon data if you keep everything in-house. Additionally, it’s typically easier to install extra data protection tools to data and programs based on an on-premises system rather than a cloud-based one.

WHY ON-PREMISES SOFTWARE MAY NOT BE THE BEST OPTION

Even with the many advantages on-premises software provides, you’ll also need to take into account the downsides, including:

Long deployment times: One major issue affecting companies that use on-premises software is its inability to be deployed quickly. When you purchase a piece of software, you’ll have to configure the hardware, test the program to see if it’s working, and then roll it out to every employee. This can be incredibly time-consuming and can put you at a disadvantage.
Scalability: Another common issue with on-premises software is that it doesn’t scale as well as cloud-based software. For example, if you increase the number of users in a program, your IT staff will have to manually install the software or hardware to let your new employees use it. Additionally, old software can go out of date and saddle you with programs that you no longer have any use for.
Remote offices and mobile workforce: If your company has multiple offices or a large mobile workforce, on-premise software can introduce new challenges in providing access to these remote employees. Additional network or carrier services must be included, increasing the operational costs and overall complexity for the Company.
Upfront costs: When you decide to purchase software and integrate it into your on-premises system, you’ll need to pay a higher initial cost for the services. While these costs may even out over time, it’s likely that new, updated programs will hit the market, meaning you may not use a program long enough to make back the money you spent at the beginning. For companies that don’t have a lot of capital on hand, a cloud-based subscription may be better.

3. Do You Have to Choose One or the Other?

One major trend in a variety of industries is the use of hybrid systems that utilize both cloud and on- premises solutions. This means you don’t have to be exclusive with your usage of on-premises or cloud-based systems. Instead, you can use both for the most appropriate needs. For example, you might have some in-house servers for the most important data, while having day-to-day data in a cloud so all your employees can access it quickly.

Find the Right Solution With Network doctor

Whether you want on-premises, cloud or hybrid solutions, you can trust Network Doctor to provide them. As one of the top business technology companies in NY and NJ area, we know that reliable technology is crucial for businesses to succeed. Choosing Network Doctor for your on-premises or cloud-based needs means you’ll be working for an organization that has over 20 years of experience in guarding sensitive data, making companies more efficient and providing top quality customer service. If you’re looking to add more cloud-based services to your business, we have a variety of cloud solutions available to consumers, along with on-premises ones as well. If you’re unsure of what you need, contact one of our representatives to receive expert advice on how we can help.

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