1. Importance of Online File Storage
Data loss and unauthorized access can bring about unprecedented events and literally make your
company go out of business. Data loss is a contributing factor to declining profits, significant downtime
and in the worst case scenario complete shutdown of business. So always make sure that you have a
competent online file storage system onboard to make your business documents. Before delving further
into the subject here are a few facts regarding how data loss can affect your business:
60% companies that have lost their data close all operations within 6 months
6% of all PCs will suffer an episode of data loss in any given year. Given the number of PCs used
in US businesses in 1998, that translates to approximately 4.6 million data loss episodes. At a
conservative estimate, data loss cost US businesses $11.8 billion in 1998. (The Cost Of Lost Data,
David M. Smith)
Companies unable to resume operations within 10 days of a disaster are unlikely to survive.
(Strategic Research Institute)
These are some shocking facts indicating what happens when we do not take preventive measures to
protect our data. Traditionally data backup was taken in CDs and DVDs but they were also susceptible to
damage. The emergence of online document storage and sharing applications played a key role in data
protection.
With online file storage systems one doesn’t have to think about data security as all documents are
stored in remote off-site servers. So even if something happens to the office the documents remain
safe. As a user all you have to do is scan all physical documents and upload them with your online
document management application. It is easy, safe and a better alternative than handling physical
documents.
Online document management systems are not only safe and easy they are also cost effective and can
help your business significantly cut down on paper related costs. As with document storage online
applications you can control all information flow in and out of the organization you do not have to bear
any cost of mailing documents, postage fees or the cost of filing and indexing official records. You can
mail files right away from the application itself.
If you consider using online document management software then make sure it is HIPPA compliant.
HIPAA stands for the Health Insurance Portability and Accountability Act of 1996 and it was created as a
set of rules for protection of health related information. Vendors of document management systems

2. who become HIPPA compliant ensure that all their client’s data and information stored within their
servers are protected and enjoys ultimate privacy.