Is Physical Document Storage More Secure Than the Cloud? Back

For business owners, maintaining secure storage of work-related documents is one of the most important things you can do. Research in the Facilities Management Journal (FMJ) suggests that around 49% of businesses in the UK still use physical document storage as opposed to a cloud-based storage system.

Despite digital storage solutions becoming more prevalent, these statistics highlight the ongoing reliance of traditional storage methods. Understanding the pros and cons is important for making fully informed decisions about document security, and today we’re going to discuss everything from the different types of storage methods to compliance and legal requirements.

Understanding Document Storage Methods

For UK businesses, document storage methods can generally fall into three categories: physical, digital, and cloud storage.

Physical Document Storage

Physical document storage includes any system where company documents are stored in their physical form. It may involve keeping documents onsite in dedicated archive rooms, or outsourced to offsite storage facilities that offer enhanced security like CCTV monitoring and controlled access.

At Secure Storage Services, for example, we offer robust document storage solutions that:

Free up valuable office space by relocating archived paperwork from your business to ours.
Enhance document security through controlled access and CCTV-monitored facilities.
Ensure compliance as we employ data protection features and follow regulatory requirements.
Offer rapid document retrieval using our scan-on-demand service which allows for same-day digital document retrieval.

Digital Document Storage

Digital document storage involves scanning and converting paper documents into digital files like PDFs, which businesses then store on local servers, computers, or hard drives. Using a digital storage solution:

Reduces reliance on paper and physical products like binders and cabinets
Simplifies internal document handling and retrieval
May still require IT oversight to manage the storage of documents

Cloud Document Storage

Storing company documents on cloud storage involves saving documents on remote servers managed by third-party providers. The files are usually accessible through an internet portal or integrated with document management platforms. Utilising cloud storage solutions:

Enables remote access from any location, ideal for remote workers and group collaborations
Offers scalable storage capacity without the need for expanding physical storage space
Requires strong cybersecurity measures for compliance and legal requirements

Cloud storage involves saving digital documents on remote servers managed by third-party providers. These files are accessible via the internet and often integrated with document management platforms.

By understanding the differences between these storage methods, businesses can select or combine hybrid solutions to suit their individual needs.

Security Factors with Document Storage

Security is a high priority when handling sensitive and private company documents, with different methods offering levels of effectiveness depending on their implementation. When it comes to physical document storage vs cloud storage, businesses should consider the following:

Physical Document Storage Security Factors

Controlled access (for example, locked cabinets, restricted archive rooms).
Risk of mishandling, accidental loss, theft, floods and fires.
Secure transport and handling if documents are stored in an offsite physical location.
The need for human oversight, which can reduce or increase risks depending on protocols.

Cloud-based Document Storage Security Factors

End-to-end encryption and secure access processes, like authentication requirements.
Risk of cyberattacks like hacking, phishing, and ransomware.
Data backup and disaster recovery systems if something fails.
Activity logs showing user access and permissions for internal control.

Ultimately, no system is without vulnerabilities. While physical documents are immune from cyberattacks, they are highly vulnerable to environmental factors or human error. Cloud-based storage systems are more resilient to physical threats, but must have good digital security to defend against data breaches and malicious hacking.

Physical Document Storage vs Cloud Storage

When comparing document storage options, it’s easier to consider the pros and cons of each before deciding on a storage solution:

Pros and Cons of Physical Document Storage

Pros:

Zero risk of cyberattacks
Easier to store original, signed copies
Simpler to restrict access to physical documents in small teams

Cons:

Requires physical space and potential expansion for additional files.
Susceptible to environmental damage like floods, fire, general wear and tear
Slower retrieval due to manual sorting

Pros and Cons of Cloud-based Document Storage

Pros:

Easy to access remotely
Supports document collaboration
Scalable storage, usually at the click of a button
Automatic backups in the event of accidental deletion

Cons:

Often requires internet access
Potential for cybercrime if security measures aren’t implemented appropriately
Compliance risks if not properly configured

The choice you make ultimately depends on your company’s operational setup, regulatory needs, and levels of risk tolerance.

What Are the Compliance & Legal Requirements for Document Storage?

When managing sensitive data, like customer information and financial records, it’s important to consider legal compliance and requirements. As of May 2019, the General Data Protection Regulation (GDPR) came into effect, which is legislation responsible for data protection and privacy across the EU.

The new legislation means that documents must be securely stored and personal data be under some form of access control.

Other key things to consider are:

Data Retention Laws: Most data retention rules come under GDPR, and the UK has no mandate for specific retention periods. However, companies must be able to justify the length of time they retain data if needed.
Access Control: Businesses are legally required to limit document access to authorised personnel only. For example, allowing company wide-access to customer data as opposed to a select few individuals would be considered bad practice.
Audit Trails: Cloud systems typically offer digital logs which can log the user, date and time of access, and the system they use. Physical storage systems can also offer this, but with more physical elements like sign-in and out sheets.

Failing to meet these requirements can result in legal consequences and reputational damage, regardless of the storage method. For many businesses, the process often feels too complex, especially when navigating the legalities. That’s where tailored support can make all the difference.

How Secure Storage Solutions Can Help with Document Storage

At Secure Storage Services, we can simplify the process by offering services that align with GDPR and support your own internal policies. Our solutions include:

Secure, offsite storage
Bulk document digitisation for ease of access and enhanced security
Certified disposal options to ensure documents are handled and discarded appropriately.

With our professional support, you can streamline your document storage, reduce unnecessary risk, and maintain confidence that your documents are managed responsibly and with your business in mind.

Whether you’re looking to upgrade your physical storage, digitise your archive, or explore secure cloud options, Secure Storage Services can help. Get in touch with us today for tailored advice and a chat about the services we can offer your business.