Your data is stored in the cloud and is subject to far more rigorous security than your internal servers. Sage One uses 256-bit encryption on your data. That is the same level of security as your online bank. Just think of all the risks you are exposed to when you just store data on your desktop. Do you always lock your computer when you step away for two seconds? Do you have a strong password? What if your laptop is stolen or your hard drive crashes? In all those cases it is much safer to have your data backed up on the cloud. In short, Sage One is super secure.