The consequences of data loss can be dire. Regardless of a natural or man-made catastrophe, here are some current statistics assessing the impact of data loss on business.
Vanson Bourne surveyed 3300 IT decision makers from mid-size to enterprise-class businesses in 24 countries during 2014 for EMC and discovered:
- Data loss and downtime cost enterprises more than $1.7 trillion in the last twelve months.
- The number of data loss incidents is decreasing overall but the volume of data lost during an incident is growing.
- Seventy-one percent (71%) of organizations are not fully confident in their ability to recover after a disruption.
- The average business experienced more than three working days (25 hours) of unexpected downtime in the last 12 months.
- Other commercial consequences of disruptions were loss of revenue and delays to product development.
- Businesses using three or more vendors to supply data protection solutions lost three times as much data as those who unified their data protection strategy around a single vendor. They were also likely to spend an average of $3 million more on their data protection infrastructure compared to those with just one solution.
Timico, a UK communications service provider, surveyed IT managers in March 2015 and found:
- Over 70 percent (70%) of IT managers have never worked out the cost of the resulting downtime despite outages.
- Despite the risks, a minority of respondents admitted to never backing up their data.
What Are the Industry Consequences of Data Loss?
Beyond the immediate financial impact of data loss, other consequences include a loss of customer confidence, corporate liability, and the loss of current and future business.
What Are the Regulatory Consequences of Data Loss?
Regulatory compliance describes the goal that corporations or public agencies conform and comply with relevant laws and regulations. CFOs care about regulatory compliance because the consequences of not being able to prove compliance—these tend to range from corporate fines to in the most egregious cases involving loss of personal freedom.
What are the monetary losses associated with downtime?
Aberdeen Group surveyed IT managers in May 2013 for “IT Business Preparedness: A combination of Business Continuity and Disaster Recovery.” All organizations, independent of size, suffer significant financial losses for every second, minute or hour of disruption. Aberdeen calculated the average cost-per-hour of downtime for all respondents and reported:
- Average downtime cost-per-hour was over $163,000.
- Small companies lost over $8,000 per hour.
- Medium size firms lost over $215,000 per hour.
- Large organizations reported losses of over $600,000 per hour.
How to Sell Backup to Your CFO
A CFO is a corporate officer primarily responsible for managing the financial risks of the corporation. Secondary responsibilities are financial planning, record keeping, financial reporting to both senior management as well as the board of directors. Given that job description, you would think that "selling backup" to a CFO would be the easiest thing in the world. You'd be wrong.
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