The Costs of Data Loss

The costs of data loss might surprise you. While it may be hard to value your business’s intellectual property, it is certainly an asset. Nothing is more frustrating than losing all of your progress: documents that outline procedures to regular operational tasks that make life easier; excel spreadsheets that contain all of your number crunching and statistics for an upcoming marketing budget pitch; HR queries containing all employee payroll data. Whatever the case may be, data loss is a setback, and it always has a cost. Because at some point or another, someone is going to have to start over-someone’s going to have to put in the extra hours to get back to the previous level of data support, which assumes you even have physical records to assist you in getting things back to on an electronic copy. Any time that is devoted to recounting the past is time taken away from building for the future, which effects productivity levels and creates stop-work situations. We all know that in today’s break-neck pace of the business realm, time is money.

Undoubtedly, systems make life easier. Machines and computers can do in some cases what would take humans a lifetime. They can store information and recall it better than we can. They’re capable of calculating statistics and algorithms that have enabled us to measure success like never before. And the internet has given us share capabilities that empower us to spread content across the entire globe instantaneously, essentially flattening the world. However, there’s a cost: the web comes with its spiders-venomous contaminations that can pollute and destroy the data contained on the machines connected to this vast abyss of connectivity. But then again, we run that risk anyway, because machines aren’t built to last forever. Surely, they develop faults over time and shut down… the Internet and all of its dark spots simply complicate the matter further.

Data loss does not just come from the natural deterioration of systems or from the millions of strains of viruses and malicious programs in circulation. We, as users of systems, can threaten the health and longevity of our data. If we do not carefully perform maintenance, or invest in IT security solutions in order to maintain operational effectiveness, data loss is inevitably imminent. Not to mention, natural disasters, which pose a threat to humans and machines alike.

A study performed by K Logix, a leading data security company, estimates that by 2018 data will account for, on average, a 1.6% impact of revenue for all businesses. Right now that metric stands at 0.6%, which means that a company running $1 billion annually in revenue can expect to lose approximately $6 million to data related costs. These calculations are derived by aggregating the reported industry estimates for total costs of data loss each year for all US-based businesses and compare it to projected US GDP. To some that seems like a lot of money; to huge businesses with promising growth, it should still raise alarm. Why? The answer revolves around the fact that this is something that can be prevented, or at the very least, lessened if companies have a resilient data recovery plan in place. That’s $6 million that can be used toward other matters: perhaps expanding a marketing budget or covering new salaries. Assuming a company generating $1 billion in revenue annually also grows at an annual rate of 3% (and sticking with the 1.6% projection from K Logix) that brings data loss projections to roughly $19 million for 2018!

The costs of poor data security is projected to literally triple over the next couple of years. Why are we projected to get worse at data security? Well for one, data growth is exponential, and is not projected to slow down… ever. More data means increased difficulty in managing it. More data also means more to lose from a system crash or other form of disaster. Banking on systems to hold up or having one level of back up is not going to be sufficient going forward. Businesses will need to bulk up their defenses and invest in multiple site backups, which include on-site, off-site, and cloud storage. Data loss software is available that automates backup down to the last personal settings on a system, and is capable of performing backup to virtual spaces or other mainframes. Data loss is not only frustrating and hampering productivity-wise; it is expensive! Don’t wait for disaster to strike. Be proactive and start generating sustainable data reserve solutions today.

Fortunately, there are companies that provide the solutions for data security [], like ShadowRestore, a division of Guardian Network Solutions and authorized reseller of StorageCraft products. StorageCraft is a provider of innovative solutions to help you back up your data fast and recover even faster. Its comprehensive and reliable backup and recovery software, ShadowProtect, enables you to perform full-fledged or customized backup of specified volumes to multiple destinations.

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