Key points
- Most data loss in small businesses comes from hard disk failures, theft, viruses and shared passwords, not from cloud providers.
- Good cloud ERP offers encryption in transit, regular backups and access control.
- Your team’s habits matter as much as the vendor’s security.
- Ask any vendor about backups, data location, access control and data export.
- If you prefer data on your own premises, a desktop ERP with regular backups is an option.
Where business data is really lost
| Risk | Desktop on one PC | Cloud ERP |
|---|---|---|
| Hard disk failure | High, unless backed up | Low, with provider backups |
| Theft or fire in the shop | Data can be lost with the PC | Data is stored elsewhere |
| Virus or ransomware on the PC | Can lock all data | Data stored outside the PC |
| Shared or weak passwords | Risk | Risk |
| Staff misuse | Risk without roles and logs | Risk without roles and logs |
| Internet outage | No effect | Cannot access until back online |
What a good cloud ERP vendor should do
- Encrypt data in transit, so it is protected between your device and the server (look for https).
- Back up automatically, at least daily, and test restores.
- Control access with user logins, roles and the option to block former staff instantly.
- Log changes with an audit trail.
- Let you export your data whenever you want.
Questions to ask any vendor
- Where is my data stored? And who can access it on the vendor’s side?
- How often is it backed up? And how quickly can it be restored?
- Can I limit what each user sees? See role-based access.
- Is there an audit trail? Can it be switched off?
- Can I take my data out? In what format, and is there a charge?
What your own team should do
- Give every person their own login. Never share passwords.
- Use strong passwords and change them when staff leave.
- Remove access for former staff on their last day.
- Keep office computers updated and use antivirus.
- Don’t download bills or customer lists onto personal phones without need.
If you prefer data on your premises
Some owners simply prefer their data in the shop. A desktop ERP keeps data on your own computer and works without internet. If you choose this, take regular backups to a separate drive or location. Milaan ERP offers both a cloud edition and an offline desktop edition.