The Jaw-Dropping Cost of Data Loss for Companies

The jaw dropping cost of data loss for companies-01-min | Comments: 0

The Jaw-Dropping Cost of Data Loss for Companies

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It is a well-known fact that data loss can affect companies and their IT Departments in a major way. But just how much of an impact can data loss have? 

How Much Does Data Loss Cost?

Data loss can affect companies in a lot of different ways. Not only can it affect productivity, but it can also directly affect revenue

It reportedly costs companies an average of $3.86 million per year. 

Causes of Data Loss

While there can be many different reasons an IT Department may face data loss there are a few that are common.

  • Human error 
  • Corrupted files or software
  • Computer virus 
  • Theft 
  • Destruction of hardware or workstations

Where Does Backup Come Into Play? 

The main goal for any company that has experienced data loss is to simply get their IT department up and running as fast as possible. 

In other words, IT departments need to be able to recover backups and quickly. In order to do this, teams need to have a disaster recovery plan in place and be able to execute that in little to no time.

Every single minute of downtime correlates to a loss in revenue. 

In fact, according to this article: 93% of companies that lose their computer systems for 10 days or more due to a disaster filed for bankruptcy within one year of the disaster. More so, 94% of companies that suffer a catastrophic data loss in a disaster do not survive – 43% are forced to close immediately, while 51% are forced out of business within two years, according to the University of Texas research. 

These are big-hitting numbers for companies that experience data loss!

What Can You Do About It 

Be prepared. The fact of the matter is, a lot of people don’t think about backup until its too late. It is still seen as an added and unnecessary expense for a lot of IT departments. That is until it is too late and your data is gone.

Remember the old saying, “Better to be safe than sorry?”  

The knowledge and acceptance of the fact that all data vulnerable will bring you one step closer to being prepared. In today’s digital economy, there are too many threat vectors and opportunities for something to go wrong. 

It is never to late to rethink your backup strategy and Zmanda can help! 

 

Also, be sure to check out 10 Points to Include in Your Disaster Recovery Plan

 

This post was written by Kelsey Glover

 

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