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Which data tier would you recommend for data that is financial in nature, not accessed daily, and archived for tax purposes?

  1. Tier 1

  2. Tier 2

  3. Tier 3

  4. Tier 4

The correct answer is: Tier 3

The recommended data tier for financial data that is not accessed daily and archived for tax purposes is Tier 3. This tier is typically designed for infrequently accessed data that still needs to be retained for compliance and regulatory reasons. Such data often requires secure storage, ensuring that it is safe and can be retrieved when necessary, especially in cases like audits or tax filings. Tier 3 storage usually offers a balance between cost and accessibility, making it suitable for financial records stored long-term without the need for high-speed access. For organizations dealing with sensitive financial information, the need for secure and compliant data management is critical, and Tier 3 effectively meets these requirements by providing an economical solution for data retention over longer timeframes.