Tech tips: Get on your own private cloud

And there are two big advantages to storing your data locally: your sensitive files can’t be accessed by a third party, such as a government agency that can subpoena an Internet-based storage provider; and a private cloud can be cheaper in the long run.

That’s because storing large files online quickly can lead to heavy monthly fees, whereas you can buy terabytes of local storage capacity relatively cheaply.

There are two ways to store data locally in your office. The first is to plug an external hard disc drive (HDD) into a PC, then transfer the data from the PC into the HDD. The downside of this method is that your data is distributed all over the place, which makes it difficult for each PC to “see” data stored by another.

The alternative is to store everyone’s files on a specially configured HDD that’s directly attached to your network – without any PCs in the middle. This is known as “network attached storage” (NAS), and it’s the basis of any personal cloud solution.

Unlike a “dumb” HDD that needs a PC to operate, an NAS device can administer files on its own – and all of the computers in the office will see your NAS as a disc drive on your network.

The tech-savvy advisor in your office -or a dedicated information technology professional, if you’re lucky enough to have one – will be able to control the NAS device through its control panel via your network, typically through a web page on his or her web browser. From there, your network administrator can set up permissions so that other advisors and support staff in your office can have access to your NAS.

There are various kinds of software to manage your NAS. One option is to install an entire operating system dedicated to the task. ownCloud (www.owncloud.org), available in free or paid versions, is designed to create a private cloud.

That software keeps multiple versions of files and also can recover deleted ones. Beyond Office documents, ownCloud can share email, contacts and calendars, as well as stream media files. ownCloud runs directly on some NAS devices or can be installed on a cheap laptop that then can be used to administer the NAS remotely.

Another component worth investing in if you have several people working at your office is a network switch. Typically, small offices use a network router, both to connect to the outside Internet and also to let individual devices on the network talk to each other.

Routers have a big disadvantage: every device on the network can see the traffic that every other device is sending and receiving. It’s like one of the old telephone party lines that were common in the 1960s, through which every person on the party line in a rural town could hear everyone else on the telephone.

A router-based network can clog up when too many devices are on your network – especially if one of those devices is a NAS unit that is serving files to multiple devices. But a switch acts like a conventional, modern phone system that creates a separate circuit for each conversation.

This means that when your NAS sends a file to one PC on your network, only that PC sees it. This leaves other devices to communicate without interference, and improves network performance for everyone on your network.

The other element that your private cloud storage system requires is a backup. The advantage of storing your files in a cloud-based storage service such as Dropbox (www.dropbox.com) is that the service is responsible for backing up and protecting your data. For a private NAS, you have to handle that responsibility yourself. There are various ways to do this, and they’re often best used in conjunction with one other.

The first is to use a NAS device that features redundant array of inexpensive discs (RAID) storage capability. A RAID array houses multiple disc drives, which can be configured so that if one of the drives fails, another drive still stores a backup of your data.

But what if there is a fire in your office and your entire HDD is fried? The alternative is to store your data off-site. One way to accomplish this is to have a separate NAS at another site.

That NAS could be at another office, if you have one, or in an advisor’s home. One company, Connected Data Inc., sells Transporter (www.filetransporter.com), an NAS device that automatically synchronizes its data across the Internet with another Transporter at a different site.

That’s a fine option, but it highlights an important requirement: whenever you store sensitive data in an NAS environment, it always must be encrypted to help fulfil your requirements to protect sensitive information under Canada’s Personal Information Protection and Electronic Documents Act.

If an encrypted NAS is stolen from your office or home, you can say that your data is safe – as long as you’re using a strong password that isn’t written on the back of the NAS box.

However, not all NAS devices encrypt your data when they’re sitting on your HDD. So, check to see that yours will. Synology Inc. (www.synology.com), which also provides intersite replication, offers this feature in some of its NAS products.

The idea of accessing files remotely over the Internet is what helps to turn a basic NAS into a private cloud. Many such systems now feature the ability to access files from various devices outside your office, including laptop computers, tablets and smartphones.

Typically, such an NAS system will ship with an application that you install on your devices, enabling them to browse and download files remotely.

This kind of remote access allows you to access your important data while you’re on the road – such as when heading to a client meeting or returning from your cottage by the lake.

And a private cloud offers peace of mind because it can do all of this securely, without you paying lots of money for online storage services or worrying about foreign governments looking at your important, confidential files.

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