The Best Data Storage: Cloud Storage vs. External Hard Drives

Summary: Examine the pros and cons of cloud storage vs. external hard drives in terms of reliability, simplicity, cost and security to determine which data storage solution is best for small and midsized businesses (SMBs).

Secure and tested data storage is essential for business operations. It also can provide recovery and business continuity after a cyberattack or disaster. There are now several options to store business data. Here’s a short history of digital data storage: Before the advent of cloud storage and solid-state drives (SSDs), data backup and storage solutions for PCs were limited to internal and external hard drives and various external media storage disks such as floppy disks and CDs. Often, disks would become corrupted or scratched, data would be lost and external hard drive reliability was questioned. It often felt like users needed a backup for their backup. Since then, storage devices have become very reliable and can store more data than ever. Then cloud storage came along and everything started to change.

Is Cloud Storage Safe?

While external hard disk drives (HDDs) rarely offer any significant cyber security protection, cloud service providers offer comprehensive multi-layered encryption, two-factor authentication, zero-knowledge encryption, AES 128-bit (or 256-bit) encryption, end-to-end encryption, personal encryption keys and TLS, or transport layer security. Also, by being stored outside your premises, it can provide secure and simplified disaster recovery in the event of fire, flood or other building disaster. However, although cloud storage is much more secure than external storage drives, there are still possibilities for the providers and you to fall victim to cyberattacks.

By contrast, you are on your own regarding security with an external hard drive. With no data encryption, anyone with access to your drive can easily access everything on it. In addition, the mobility offered by external hard drives is undermined by the fact that they can be destroyed, stolen or physically damaged by electrical storms and other natural disasters.

Are External Hard Drives and Cloud Storage Portable?

Both external HDDs and the cloud are highly portable. The main difference is that an external HDD is often pocket-sized, easy to take along, and requires no network connection. However, to access the cloud, you must have an internet connection to access your files. Therefore, an external drive could be a more secure option if you intend to work in public places with unsecured WiFi. But cloud storage allows accessing your data from any of your connected devices.

External hard drives employ basic cutting and pasting of data to copy the stored data. With HDDs, data syncing can take a while and automatic syncing requires the drive to be left on. On the other hand, online cloud storage offers automatic syncing, which transfers and updates data from your computer to your cloud storage. In addition, for file sharing, online storage allows file sharing by email or a link.

Data Collaboration in Real Time

Real-time collaboration is one of the coolest cloud features, allowing different users in different geographical locations to work together simultaneously, viewing the same data in real-time. Using the cloud for file sharing has revolutionized remote access work and supports unparalleled, worldwide collaboration.

Data Transfer Speed

With advances in USB technology (USB 2.0 and 3.0), external HDDs now transfer data at very high speeds. As a result, cloud backup can vary in speed, depending on your local network traffic and the amount of data you are transferring.

Cloud Storage vs. External Hard Drive Reliability

External HDDs can fail at any moment. They can be dropped, whacked, exposed to heat, cold, liquids and many other vulnerabilities. If the drive contains all your data when it fails, data could be lost permanently. The cloud presents no physical threat considerations. There is nothing to lose, break or get stolen. External hard drive reliability is good for 3-5 years if they are protected from physical damage. Some HDDs have internal batteries that are not user-serviceable.

Scalability of Data Storage

As with all physical storage media, external drives have a set amount of storage space when you buy them. When you have exhausted the storage memory, that’s it. You either need to get a bigger external drive or remove some of the stored data. Cloud storage can be easily increased at any time for a higher fee.

Switching to Cloud Storage

Most cloud storage occurs automatically, updating files to the latest version as changes are made. The cloud offers upgrades to users as they develop the need for more storage space. Also, every cloud service provider offers affordable plans to expand storage as needed. Another great feature is that users receive warning messages when running out of allotted space in the cloud, prompting you to add additional storage before reaching the plan maximum. With cloud storage, you can always store your data, no matter how much you have.

Data Storage Cost Considerations

Once you purchase an external HDD, there are no further costs related to that device. If you need more storage, you buy another drive. However, there is minimal support available if you run into problems. There is no data backup and no file recovery available. If files are damaged, you can pay large sums for professional data recovery. A manufacturer’s warranty might cover the drive, but your data is not part of the deal.

Data Storage Solutions: Key Takeaways

In the long term, the cloud offers so many features not available for external HDDs that the ongoing price you must pay for cloud storage is more than worth it in the long run. In addition, users only need to pay for additional storage after they have used up the initial space by upgrading their subscription to a premium cloud storage plan. If you own a small or midsized business, planning for expanding data storage is part of ongoing IT maintenance. Ultimately, the security, peace of mind, flexibility and functionality of cloud storage wins out over external storage drives.

Your IT provider can help you classify storage for long term use (such as files needed for taxes, audits, legal requirements, patient records and more), so you are not paying for unnecessary storage. Also, the more records you maintain, the greater the liability risk from data breaches. Keep only those records required by law or for active business purposes.