Articles & Guides

Online Backup News: Data Loss Costs Outweigh Secure Storage Costs

Cliff Boodoosingh on May 07, 2009
 
As the technology matures, the number of arguments against online backup and recovery is quickly diminishing.

Many companies today back up their data using DVDs, Tape, Portable Hard Drives, or some other type of in-house solution. It’s a cheap, easy way to feel as if your data is protected.

Business owners may initially balk at using off-site storage out of reluctance to change a process that has been in place for a long time.
But what would happen if there were a significant natural disaster like the one we saw in New Orleans? Would your company be able to recover its data?

The sad truth is that many companies keep all of their backups on-site. And most companies have never even tested their recovery processes to ensure that the backups have been performed properly.

Gartner Research estimates that a single incident of data loss can cost a company an average of $10,000.00. It would be safe to say that the amount could be even higher depending on the nature of the data lost.

Technology, and the growing need to store and retain the integrity of massive amounts of client & business information, have increased the possible costs of data loss drastically.

Businesses need to take many factors into account when considering the cost of a data loss incident versus the cost of an off-site backup solution to handle storage and recovery:
• How much would it cost for a data entry team to manually rekey any data that were not recoverable. This process alone can take weeks, depending on the amount of data that needs to be reproduced.
• What would be the cost of rebuilding years of work from scratch, such as customer lists, marketing materials, project files, etc…?
• What would be the cost of downtime for the company?
• What would be the cost of lost business due to the incident, and the potential “damage control” compensation that may required to keep customers happy?
• What would be the potential costs associated with litigation in the event that the lost data exposes the company to legal liabilities?
• What would be the cost of re-starting the business in the likely event that the company can no longer re-open its doors?

An Ounce of Prevention 

When companies implement an online backup solution, they eliminate the 2 leading causes of critical data loss: human error and physical media failure.

Because it’s offsite and fully automated, it’s not subject to the hardware malfunctions or human error that can take place with an in-house solution.

Companies who continue to use in-house storage methods are putting themselves, their reputations and their clients in the path of a storm that will eventually hit.

Whether it be large or small, data loss threats will present themselves. When it happens, will you and your company be ready?

Storagepipe Solutions has been providing online backup solutions since 2001. Today they offer a wide range of products for the Enterprise and SMB markets. Whether you need a robust online backup solution, email archiving, or just general business continuity assistance, Storagepipe Solutions would be happy to assist you with your disaster recovery needs.


 

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