There are pros and cons to the cloud, but there are also pros and cons to managing a local IT infrastructure. The reality is that for most small and medium businesses the cons of the cloud don't outweigh the pros.
Have a business continuity plan
Businesses should consider the fact that servers will crash, and networks will go down. Hopefully, it won't happen often, but if your business relies on access to certain servers or data to conduct basic operations, there should be a disaster recovery and business continuity plan in place that defines what to do when an outage occurs.
If the outage is a few minutes, or even a of couple hours, it's not such a big deal for most companies. But consider what you would do if your servers are unavailable for days, or weeks. Define mitigating processes that can be used to conduct business on a short-term basis, and consider what your options are to restore, rebuild, or replace your infrastructure if necessary.
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