I have been using this Lacerte software on cloud with Ace Cloud Hosting, which is quite beneficial. The tension regarding the security of data files is not there. If you want to limit your DMS extensions to your employees only, use two way encryptions which will be handy in saving your data access from other users. Keep a password for them for your Lacerte software; you can control access permissions when in cloud and give different levels of access to clients, your employees, or those with whom you want to share, and it also provides disaster recoveries.