When organizations began to struggle with data storage, cloud storage was introduced as a future-forward solution. It could seamlessly, securely, and cost-effectively solve issues of data agility, scalability, and accessibility.
Before the cloud emerged, many organizations stored their data and files in-house using storage area networks (SANs) they built themselves. However, this in-house storage became expensive, and data volume quickly exceeded the space available for physical servers. To solve these issues, many companies migrated their data and workflows to virtual (software) machines on physical servers housed in giant data centers dotted across the country and worldwide. These data centers – the majority operated by leading technology companies, such as Amazon, Microsoft, and Google – came to constitute what we call “the cloud.”
Now, years after this initial cloud migration, organizations are revisiting their data storage solutions. At Firmex, we’ve heard discussions around “cloud exiting,” a phrase referring to the decision to leave cloud storage and return to on-premise storage.
To make sense of all this, we’ll break down the origins of “cloud exiting,” current data storage options, why a workflow-based approach is best for determining appropriate storage solutions, and how cloud-based tools such as virtual data rooms are still best for document-sharing workflows.
Understanding Cloud Exiting
In 2023, organizations started looking closely at their cloud storage strategies to see whether the benefits they sought by moving to the cloud were paying off. While the advantages of cloud storage are high, companies have also encountered some difficulties, depending on their needs and the data they store.
These difficulties can include the availability of data – if they primarily use the cloud for storage, they may experience disruptions with productivity and reliability. While migrating to the cloud cuts costs for technology hardware, there are still fees to consider. Many cloud storage options advertise flexible pricing, which is helpful for many organizations, but if there is a large amount of data to store, costs may rise higher than expected.
While these concerns are valid, they are not easily answered or solved with an exit and pivot to another storage solution. Switching to on-premise solutions may exacerbate some of these difficulties or raise new issues that must be addressed.
There is no definitive answer to the question of data storage. Instead, a nuanced approach based on company workflows and data needs must be considered. In terms of performance, security, and cost, it makes sense to keep some applications where they are and explore alternatives for the rest.
Taking a Workflow-Specific Approach to Data Storage
Four primary data storage approaches – cloud storage, on-premise storage, hybrid storage, and edge storage – should be considered based on an organization’s needs.
When considering these factors, organizations do not look at their data and applications as a single indivisible entity. Rather, they’re exploring which of the following options – in what combination – are best for what types of data and what processes.
- Cloud storage
Data is hosted in virtual machines in remote data centers, which make up “the cloud.” Cloud storage is typically much more cost-effective than on-premise storage and allows organizations to easily adjust their storage capacity based on their needs. Cloud storage can be accessed from anywhere but requires an online connection. While the cloud does make data backups a streamlined and automated process, it also poses questions of security and reliance on external data centers.
- On-premise storage
This option replicates the public cloud model, but ensures that physical servers are dedicated entirely to a single company’s data. Physical servers are kept within the organization or at a third-party provider’s location.
These physical servers use the same virtual machine technology public cloud providers use and have ample storage capacity, but scaling based on data needs becomes a much more complicated process. Technology has also become much more expensive, and many organizations don’t have teams with the right technical expertise to maintain the necessary infrastructure and oversee regulatory compliance.
- Hybrid cloud storage
This blended approach is achieved by storing less sensitive data in the public cloud and moving confidential documents to private (on-premises or private cloud) servers. Non-sensitive data is that which companies share openly as a matter of course, while sensitive data comprises trade secrets, financial data, personally identifiable information, and other confidential content.
- Edge storage
This decentralized and scalable approach stores data in multiple locations that are physically closer to where data is being used and accessed. This proximity improves response times, which is critical for applications that rely on fast processing and data delivery, e.g. industrial applications, smart trackers, and security systems.
Edge storage saves bandwidth, which may result in lower costs than cloud storage over time. Storing data in multiple edge locations improves data integrity and security, too, as a breach in any single location will not impact the remaining data.
Choosing the Right Storage
With so many available storage options, it can be challenging to determine which singular or combined solution is best. To decide, organizations are evaluating their data and processes through a security, performance, and cost lens. They’re asking questions like:
- How much data storage do we need? Do the private/hybrid/edge alternatives meet our scalability needs?
- How often do we need to access this data, and how fast? Can we readily access our data through the private/hybrid/edge alternatives?
- How secure is our data in the public cloud? Will it be more secure to use a private/hybrid/edge alternative?
- How much does the private/hybrid/edge alternative cost? What is the pricing structure?
With more granular insights, organizations can confidently move some or all data and workflows to the type – or types – of storage repositories that make the most sense.
A Secure Bridge for Sensitive Document Workflows
Amid these discussions, one question persists. How will organizations share their data outside of their own corporate firewalls?
These days, sharing digital assets within and beyond the company perimeter is part of everyday business practice. Financial and legal firms still need secure spaces to share documents for due diligence and M&A transactions. Pharmaceutical, oil and gas, renewables, and other industrial enterprises need to share plans and documentation while keeping trade secrets private. Private equity firms need secure digital spaces to build their fundraising efforts.
If an organization decides to return to on-premises or private cloud servers, it shouldn’t hamper this process or make it more challenging. Delays and access difficulties can impact deals and erode client confidence. Organizations need ways of sharing documents beyond their walls, with flexible yet stringent access controls and banking-level security.
Virtual data rooms (VDRs) continue to be the optimal choice for confidential document workflows. The best VDRs to use are purpose-built by experts with security and usability in mind. They have the security features, access controls, management tools, and flexibility to support your business needs.
The Firmex VDR: Secure and Purpose-Built
Firmex VDRs are hosted on a leading cloud computing innovator that is trusted by highly-regulated organizations around the world. These are ISO/IEC 27001:2013 certified data centers that have fire and disaster safeguards, keycard access, and mirror sites in place.
That partnership delivers high-availability architecture and a service level agreement (SLA) of 99.0%. This means Firmex rooms are guaranteed to be up and running 99% of every day, hour, minute, and second of the year.
Our clients choose us because we deliver on a range of professional demands, but they prioritize confidentiality above all. We’re purpose-built to provide airtight security for mission critical document-sharing transactions. Our security features include:
- Compliant with internationally recognized security standards (SOC 2 Type 2; GDPR – the European Union’s General Data Protection Regulation; HIPAA – the US’s Health Insurance Portability and Accountability Act)
- Access authenticated through Single Sign On (SSO)
- Real-time data backups, replicated to mirror data centers to ensure full availability and zero data loss
Beyond data storage security, Firmex has a range of built-in security features designed to thwart document misuse, theft, or leaks by authorized users of the VDR itself. These include group and user-based permission settings, real-time audit reporting, document viewing and downloading restrictions, and dynamic watermarking.
Your Storage Strategy Starts Here
While there are ongoing discussions about the best methods for data storage, organizations need a way to securely share highly sensitive information with other individuals or organizations simply and efficiently. When confidentiality is critical, 4200 companies in 110 countries choose Firmex to run over 20,000 data rooms per year.
Curious what other features come bundled in a purpose-built Firmex VDR subscription? Visit our website for more information: https://www.firmex.com/virtual-data-room/
