What does happen when you lose data? The cost of data loss can be measured in the amount of money that is paid out to recover or attempt to recover lost data. What cannot be accurately tracked is the cost of lost opportunity that occurs when company personnel are focused on recovery instead of their actual jobs. In 2014 a survey was conducted, the Disaster Recovery Preparedness Benchmark Survey. This survey tried to define what the true cost and effect of losing parts of our all your data. What they found was very stark and created a measurable. In the 5 years since this was released companies have begun to see the demonstrated costs of lost data and initiated a comprehensive disaster recovery plan.
The actual cost of lost data can be astronomical for some. 15.8% of respondents spent at least $50,000 to recover their data and 3.8% spent over $1 million dollars. This figure only covers the cost to pay outsourced IT. This does not include internal IT staff, or lost revenue. 51% of companies that suffer sever data loss close within 2 years and 70% of small firms go out of business within a year of a large data loss incident. Data lost is more common than most business owners and executives realize. 36.8% of businesses surveyed lost at least one critical business application.
With this valuable information, what can be done to prevent data loss. 14% of data loss can be attributed to weather and 24% to power failure. Some of the power failures also fall under weather related causes. Unless this becomes a disaster level weather occurrence cloud or off-site back ups can mitigate any loss. The question becomes what is best for your business, continuous, daily, weekly, or a combination depending on how critical the data is. There are differing costs associated with the levels of backup and many of these decisions will be based on this.
What does happen when you lose your data? If you are properly prepared it takes a simple phone call and recovery can occur almost instantly. If you aren’t, a mad scramble to see what can be done. The outcome more often than not means catastrophe for your business.