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Though not definitive, the answer is "it depends".

There are a number of variables that would go in to arriving at an answer, such as:

What kind of network, how reliable, how extensive, complicated? What kind of data, and the potential impact of loss from 1 computer? What if there was a fire and all computers were destroyed?. Do you bet your business on the data in those individual computers?

My take, at a minimum, is no matter what, if your business can't stay down while data is reentered and recovered from paper and human memory, it makes sense to backup somewhere.

If your network can stand the traffic, then a NAS or server storage is logical. This also includes a backup of the data to be taken off-site daily at business close, even if on a usb attached drive and brought back each morning.

I have successfully used a combination of the local/NAS environment. Let each PC user use data on their machine, add, delete, edit, etc - then they run a batch job using XCOPY the last thing each day to write their incremental changes to the data on the NAS - then someone responsible copies the NAS data to a portable drive, again a batch job would work fine. (of course this is assuming wintel, but something similar for Linux/unix would be apropos)

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Q: Would it be preferable to have a network storage device or individuals systems using their own storage?
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