Online data storage is a type of virtual storage option that allows users to store recorded data in a remote network. Instead of using an external hard disk or local server the data is transmitted via the Internet to the service provider who manages and maintains the data servers and infrastructure. It is usually a component of cloud-based services, but it is also a possibility to replace other options which require backup on site.

In recent years the number of companies offering online storage for data to consumers and businesses has grown significantly. Some offer specific kinds of data such as backups, photos, or music, while others will store any type of file. The majority offer a small amount of storage for free, and further capacity is usually offered for a fee on a monthly or annually basis.

File storage is a popular type of online storage for data. It utilizes a hierarchical system to organize data into folders that are then tagged with metadata* for easy identification and retrieval. This system is compatible with desktop computers and is the most commonly used method for backing up files on cloud-based platforms.

Cloud-based online storage of data offers many advantages to traditional methods of sharing and storing documents, including increased physical safety and automated backup capabilities. This type of storage is also more flexible in the event that business requirements can change over time. It also reduces the chance that important data could be lost because of natural disasters or human error. It also helps prevent the unauthorized access of sensitive information by restricting access to stored files only to those who are authorized do so.