Understanding the Risks of On-Premises Servers: What Every Dealership Should Know

It’s no secret that the OPE Industry is making a shift to the digital side. However, many dealers still rely on outdated on-premises servers, unaware of the significant risks involved. The risks of on-premises servers—such as data loss, security breaches, and limited disaster recovery capabilities—pose serious threats to your business operations.

Understanding these risks is the first step toward making informed decisions about your dealership’s IT infrastructure. Cloud servers present a modern alternative, offering superior security, cost savings, flexibility, and disaster recovery options.

Still not convinced? Let’s dive into the six key reasons why the risks of on-premises servers are too great for your dealership.

 1. Data Loss

Imagine a scenario in which your local server experiences a catastrophic failure, resulting in the loss of essential customer service records, maintenance schedules, and inventory data crucial for serving your clients effectively.

For example, a sudden power surge from a lightning strike could fry the hard drives of a local server, causing the dealership to lose valuable customer service records and maintenance logs.

This could lead to confusion and delays in servicing customer equipment. Even if data is not lost, the downtime associated with bringing new hardware online can be detrimental.

Losing things like inventory or work order histories can be a major inconvenience to your dealership, but your customers can also find this experience frustrating when they return for servicing.

Read Next: 10 Reasons Not to Wait on Moving to Ideal Cloud

2. Missing Mobile Business

In an industry where mobility and on-the-go service are essential, relying solely on a local server limits your ability to access critical data remotely.

For Example: a service technician in the field urgently needs access to equipment schematics stored on the local server but is unable to retrieve them, resulting in prolonged repair times and customer dissatisfaction.

Not being able to access your dealership management system on the go can lead to missed sales, extended wait times, and lost business.

3. Disaster Recovery

Natural disasters like storms or floods can also pose a significant risk to your dealership’s local server housed in-store. Without proper disaster recovery measures in place, these events could lead to the loss of vital business data and disrupt your dealership’s operations indefinitely.

For example: a severe storm can flood a dealership’s premises, damaging the local server and rendering critical service records and inventory inaccessible. This can result in delays in customer service and revenue loss.

Without access to your data, your dealership could be left unable to meet customer needs, contributing to a longer recovery time for the area.

Read Next: 6 Reasons Why Cloud-Based Data is Critical for Your Dealership

4. Security Concerns

Local servers are also vulnerable to physical threats like theft or vandalism, especially in an outdoor retail environment. Without robust security measures, unauthorized access to your server could compromise sensitive customer information and dealership operations.

Unauthorized online access can leave you open to malware or ransomware, which can change your password and lock you out of your valuable data, usually requiring payment to criminals to allow access again.

Here’s an example: A break-in at the dealership results in the theft of the server containing customer purchase histories and financial records, exposing customers to potential identity theft and damaging the dealership’s reputation.

Regardless of the threats from online or developing from inside your building, your server is the nerve center for all your information. If this gets compromised, your business is compromised.

5. Unexpected Hardware Costs

Upgrades, repairs, and replacements can strain your dealership’s budget and disrupt operations if not adequately planned for.

For example, a dealership’s aging server experiences hardware failure, requiring costly repairs or replacement parts that were not budgeted for. This leads to financial strain and potential downtime in dealership operations while those parts are acquired.

Staying ahead of failures like this is essential to keep your business running smoothly, but often takes valuable time and effort away from running the dealership itself.

Read Next: How Switching to Cloud Protects ATS Outdoors from Dangerous Ransomware

6. Maintenance and Upkeep

Local servers require regular maintenance and updates to ensure optimal performance and security. Failure to keep up with these tasks can leave your dealership exposed to software vulnerabilities and performance issues.

Neglecting to update the dealership’s local server software also makes it susceptible to security breaches, potentially exposing customer data, disrupting dealership operations, and allowing ransomware to infect it.

Tucking your server away in a safe corner can seem like a fantastic idea, but servers need a proper environment to run at their best, including being well-cleaned and ventilated. Failure to do any of the regular maintenance can result in a downed server, eating up precious time and resources.

As Cody Armstrong from ATS Outdoors noted, ” It [was] time-consuming for me to always have to go in super early or go in late after everybody’s logged out and do the updates.”

So, while having a local server gives you control over your dealership’s data, it comes with inherent risks that can impact operations and customer satisfaction.

Embracing Cloud Solutions for a Better Future

When you’re running your dealership, you don’t have the time or extra resources to deal with data loss, disaster recovery, and security issues. On top of that, it’s difficult to keep up with the extra costs created by maintenance needs and hardware requirements.

Embracing cloud storage solutions provides a more secure, scalable, and accessible alternative. This change can help your dealership thrive by boosting efficiency, ensuring data safety, and improving overall customer satisfaction.

 

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