This article is a conversation about your data storage, security and why some Dealers are hesitant to outsource their Data hosting.
The problem with data storage
But first, what is the problem we are trying to solve? The cost of data storage and Information Technology resources in Dealerships just continues to grow. Many Dealers are not aware of the total cost, because these costs can be split across multiple cost accounts on your Balance Sheet. Take the time to collate all of your hardware purchase, software licence and IT Professional maintenance costs together and it can be surprising how high it is.
Hosting A Server On-Site Is Expensive
What is driving this cost increase trajectory? Data storage, recovery and compilation pure and simple. Many Dealers have long passed the point where their “in house” server solutions are cost effective. Economies of scale are tipped in favour of Data Centres and the cost of hosting your data off site will be lower than supporting your own storage solutions.
So Why Don’t Dealerships Move To The Cloud?
So with such cost savings available why the hesitancy to adopt a more efficient solution? Well change is never easy and it is not difficult to imagine perceived downfalls with moving away from storing data onsite in your store. Most notably:
- Security and privacy of your data
- Concern over losing control of your data.
These could be seen as valid concerns, but they are ignoring the realities of how Data Hosting Centres operate and the contractual safety barriers in place. At times this is really more of an emotional issue for Dealers and they fear the loss of a “security blanket”. The Data Hosting Industry is well developed and supported with state of the art technology a Dealer would never be able to afford.
What are the opportunity costs of hosting your data on-site?
So with any decision you have to weigh up the pro’s and con’s. When you are making this decision think of the negatives of hosting your own data:
- Higher cost
- Maintenance of your equipment is another Dealer management task
- Maintenance of data corruption is another Dealer management task
- Backup of data can be compromised by lack of data or equipment failure
- Restoration of services in the event of failure is much slower
- External connectivity to your server is difficult
- Installation of modern software applications is constrained, and in some instances not possible
So should dealers make the switch to the cloud?
How to weigh these factors in your decision is a personal one for each Dealer. But as someone who has been in this Industry for many decades, I have seen this hesitancy many times, and the fears never come to pass.
I still remember The “shock, horror” of the perceived concerns with the advent of electronic ignition. Well, think about how that turned out ?? Sooner or later you will be using data hosting. Why wait, start enjoying the benefits!