6 Reasons Why Cloud-Based Data is Critical for your Dealership

6 Reasons Why Cloud-based Data is Critical for your Dealership

When it comes to dealership data, there have historically been two main options: on-premise and cloud-based. Many dealers are still relying on outdated on-premise servers because it’s worked for them so far – but things are changing. As technology continues to evolve, cloud-based data is becoming increasingly popular for several reasons including security, affordability, and flexibility. When you switch to the cloud, your service provider communicates with the cloud resource independently without the need for the end-user’s involvement.

In this blog post, we will discuss 6 reasons why cloud-based data is critical for your dealership.

What exactly is the cloud?

Web services that save your data on a server are commonly referred to as the cloud. It may be accessed from any device, everywhere there is an internet connection. These cloud servers are housed in data centers located throughout the world. In 2020, the global cloud computing market was valued at $371.4 billion and is estimated to reach $832.1 billion by 2025.

Why is cloud-based hosting important for a dealership?

QUICK NO-BRAINER: Eliminate Local Installations with the cloud. Remove the need to install Ideal or keep your data locally, cutting down the inflated cost of hardware. If you are wondering how much storage there is on the cloud, by 2025, there will be over 100 zettabytes of data stored which is equivalent to a trillion gigabytes. Additionally, Cloud technology has a near-instantaneous positive impact. Within the first several months of implementing the technology, 80% of businesses report improved operations.

Need more convincing?

  1. Cloud-based data offers increased security

When your data is stored in the cloud, it’s protected by multiple layers of redundancy to ensure that all information remains accessible regardless of any network issues or outages. In addition, cloud-based data is typically encrypted to protect your information from being accessed by unauthorized individuals. Due to the strong reliability of cloud technology, 94% of businesses indicated substantial improvements in online security after transferring their data to the cloud. Read more about cloud hosting here.

  1. Cloud-based data is more affordable than on-premise data

When compared to using in-house systems, adopting third-party platforms can save small and medium-sized enterprises 40% on IT expenses, hardware maintenance, electrical power, and server replacements costs. With cloud-based data, you only pay for the storage that you need, which can save you a significant amount of money compared to on-premise data.

Oftentimes, dealerships hire in-house IT staff to manage their server in-house; now, this need for is eliminated, as the hardware is owned by vendors and stored in off-site locations. Cloud solutions also lead to less demanding maintenance costs. In the situation where servers or other hardware need repairs, upgrades, or other maintenance services, it would not cost your company additional time or money as it’s the vendor’s responsibility.

  1. Cloud-based data increases workplace productivity

Cloud computing increases workplace productivity due to its installation being faster than conventional software installation. A standard company-wide on-premise software installation can take months, whereas cloud software deployment can be accomplished in a few hours. That means customers spend less time waiting and employees optimize workflow.

“It takes me less time because I don’t have to remember to restart the server weekly, do the updates, any of that. It frees me up to do other things.” – Bob Haight, owner of Haight’s Mobile Maintenance. Read the full story here.

  1. Cloud solutions require a lower initial capital investment

Cloud solutions offer services at a lower initial capital investment by offering pay-as-you-go pricing models. This option is frequently used in the cloud industry as it offers service respectful of the company’s budget by providing savings accommodations and flexible payments. In this model, the company would only pay for the software being used; other upfront licenses tend to charge per user. This method reduces financial risk as companies get to try the software and cancel anytime if it isn’t a good fit.

  1. Cloud-based data is more flexible and scalable than on-premise data

With cloud-based data, you can access your information from anywhere, at any time, as long as there is an internet connection available. This flexibility allows you to work remotely, which can be beneficial for those who travel frequently or have busy schedules that make it difficult to come into the office every day. You can also easily and quickly scale your storage up or down as needed. This scalability allows you to save money on storage costs while still having the ability to store all your important information. Consider that when your business grows in locations, the expansion will be smoother as upgrading your system or installing new servers will be handled for you.

  1. Reliability, maintenance & management

To make informed decisions, it’s important to understand the different maintenance needs for each type of deployment. It’s easier to manage a cloud server than on-premise, as the software will be maintained for you by another party. As a result, your data will be organized efficiently and securely without the burden of paying to expand your labour force to maintain it.

In the incident of a power outage or other issues that can cause your server to go down, you will not need to worry about downtime if using cloud-based data. Your information is always available when needed and will never be lost due to a hardware failure. Also, consider that when your on-premise server drops, someone from your team will need to fix it, which also means fewer people helping customers. Cloud eliminates the need for you to handle those maintenance problems – your skilled dealer system team handles it. The organization which owns the software, firmware, or hardware is responsible for installing security patch updates to all devices, maintaining data center availability, and responding to services requests.

Hopefully, after reading this blog you learned how to differentiate between the two main storage types of dealership data: cloud-based and on-premise data. Based on security, affordability, workflow efficiency, starting capital, reliability, flexibility, and scalability, as well as maintenance and management cloud-based is the predominant winner.

“The transition was easy. It was pretty straightforward”– Bob Haight, owner of Haight’s Mobile Maintenance. Read the full story here.


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