By 2025, the world will have to store about 200 zettabytes of data. In 2021, in comparison, there were 79 zettabytes of generated data. Such an increase makes records management and storage of business documents truly challenging.
The article below explains how to secure sensitive documents using a proper document management system. It also explores different ways to secure storage, highlighting their advantages and drawbacks. Finally, it offers tips on how to best use business document storage software to maximize its effectiveness.
Having proper and secure document storage is essential for any business. It protects sensitive information from unauthorized access, data breaches, and malicious actions. Not securing this data could result in significant losses for a company.
However, not all businesses seem to prioritize secure records storage. Here are just a few examples of companies that suffered data leaks:
Cybercrime is continually rising. According to Security Magazine, over 2,200 attacks occur daily. It’s nearly 1 cyberattack every 39 seconds. Financial losses total about $788,000 per hour — 400 times more than in 2001.
Thus, regardless of industry or the size of your business, the secure storage of important documents should be a priority, especially for heavily regulated industries that work with sensitive customer information, including:
The most important files and data to store securely include:
These sensitive documents should be encrypted and stored in an approved cloud-based solution. Organizations should also ensure the security of physical documents in locked filing cabinets.
Poor information management and the absence of a document storage plan can lead to a number of serious issues, including:
Here are the top storage ideas for business documents storage.
Method | Description | Pros | Cons |
Cloud storage | This is a method of storing data on a remote, internet-based server. It allows companies to store, share, access, and collaborate on data anywhere and anytime. The solution is becoming increasingly popular — 60% of the world’s corporate data is stored in the cloud today. | 1. Accessibility 2. Cost-effectiveness 3. Scalability 4. Security 5. Automated backups | 1. Lack of total control 2. Continuous internet access required 3. Privacy concerns 4. Difficulty of migrating data |
Local storage | The method suits businesses that want to keep all their files within an on-site server or computer. Data is stored on hard drives or flash drives and can be accessed via a computer within the office space. | 1. Effective control 2. Convenient switch between storage systems 3. No internet required 4. No hidden fees | 1. Lack of scalability 2. Risk of unwanted internal access 3. Lots of physical space required 4. Specialized in-house IT staff needed |
Physical storage | This usually refers to the storage of paper records or tangible documents, such as hard copies of invoices and contracts, which are kept in storage locations. This can be both an on-site or offsite document storage. | 1. Security 2. Access controls 3. Access without an internet connection | 1. Risk of physical damage 2. Slow access and sharing process |
Document management systems | This is a method of digital storage that uses computer software to store, track, and organize records. | 1. Security 2. Access from mobile devices 3. Ease of file sharing 4. Big storage capacity 5. Automated workflow 6. Increased collaboration | 1. Time-consuming to transfer digital files 2. Internet access required |
Storing documents online is efficient and secure due to the following features and characteristics of various document management systems:
Statistically, companies that implement virtual document storage software and use artificial intelligence and automation, have a 74-day shorter breach lifecycle and save $3 million more than those that don’t.
That’s why many organizations choose to store documents via a virtual data room — a safe and efficient solution with advanced collaboration functionality and cutting-edge security features.
A VDR shouldn’t be confused with free cloud storage platforms like Google Drive, iCloud, or Dropbox.
The main difference between virtual data rooms and services like Google Drive is that a VDR is designed specifically for managing business documents, while Google Drive and similar services are more suitable for domestic users and non-private documents.
Here are the main reasons for choosing a virtual data room for document storage and distribution:
You can read our virtual data room vendor reviews to learn more about virtual data storage and choose the best VDR option for your business needs.
Let’s summarize the key points on how to store important documents online or offline:
It's necessary for business owners to keep files safe, regardless of company size and industry. If an organization ignores data security issues, it may face data leakage, unauthorized access by third parties, and malicious activities. As a rule, all this leads to financial and reputational damage to the company.
You can safely keep business documents relying on cloud storage solutions, on-site servers, physical storage, document management systems, and virtual data rooms. Be sure to compare your security needs against each solution's security features before choosing the most reliable storage.
To store and share massive amounts of documents businesses use virtual data rooms. Their advantages over Dropbox, Google Drive, and other alternatives include strong data encryption, granular permissions, multi-factor authentication, activity tracking, and watermarking. These and other features make VDRs the best solution for data safety.
Elisa is a marketing specialist with 15 years of experience. She worked for many VDR brands and gained insider knowledge of the industry.
At DataRooms.org, Elisa conducts marketing research, develops content plans, supervises content teams, and develops VDR review methodology. She envisions her mission as distributing accurate knowledge of virtual data rooms.
“My mission is to deliver accurate and relevant knowledge of virtual data rooms to as many people as possible.”