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The Consequences of Losing Your Data and How it Impacts Your Business

Just about everyone has experienced data loss at one time or another, whether it was due to a computer hard drive crashing or an accidental deletion that couldn’t be recovered.

The costly impacts to businesses related to data loss are many and some so severe they can cause a company to shut down for good.

A majority of information today is in digital form rather than on paper, which means it could be lost unexpectedly in an instant. But, despite that well-known fact, businesses still don’t always pay enough attention to proper data backup practices. 

96% of all business workstations aren’t being backed up.

Some of the common backup mistakes that people make include:

  • Not including all data in their backup
  • Only saving data in a single place
  • Not having an offsite/cloud backup
  • Leaving backups unmonitored
  • Letting backups run out of space
  • Not testing the recovery of their backup regularly
  • Not backing up cloud services, like Office 365 or G Suite

Backups are unfortunately one of those parts of a technology plan that can suffer from “out of sight, out of mind” with businesses not regularly monitoring backups to ensure they’re running smoothly. Then, a data loss incident happens, and the company realizes they don’t have that safety net they thought, and the consequences can be severe.

What Happens After a Data Loss Incident?

The impacts of losing your business data can include anything from spending hours recreating lost work product to actually losing your entire business due to severe data loss.

Data loss can happen out of the blue and due to a wide variety of causes. Some common causes of lost data include:

  • Hard drive crash
  • Software issue
  • Cloud service problem
  • Natural or manmade disaster (hurricane, tornado, fire, etc.)
  • Accidental deletion or overwrite 
  • Human error (liquid spills, dropped device, etc.)
  • Malicious deletion
  • Lost or stolen device
  • Malware/virus/ransomware

If you don’t have a well-managed backup and recovery plan that’s monitored regularly, you can suffer the following consequences should an incident of data loss occur at your office.

Downtime/Loss of Productivity

When you suffer data loss, it can mean “all hands on deck” trying to undo the damage and regain access to your data. Some of the longest downtimes are associated with ransomware attacks, that make data unusable and cause organizations to scramble to get things back online or pay the ransom.

There have been several news stories noting ransomware causing city services to be unavailable for days and hospitals to divert patients because they didn’t have access to any of their records.

The average cost of downtime is $5,600 per minute. So, the longer you’re down and trying to recover data, the more costly the event.

Exposure of Sensitive Information

If you’ve suffered data loss due to a data breach, that can mean that a hacker has their hands on sensitive information like employee SSNs or client credit card numbers. 

The average data breach exposes 25,575 records and the average cost per lost record is $150.00. This comes from a combination of costs, including those related to downtime, privacy compliance penalties, and restoration of data and operations.

Loss of New & Repeat Business

If you’ve lost your marketing data or product database, it can make servicing new customers more difficult. You can easily lose business because you’re hampered and without the files you need to properly handle customer requests for your products and services.

Loss of business can be compounded, because you not only lose repeat business if you can’t properly service a customer need in a timely manner, you can also lose new business and the ongoing sales that would’ve brought with it.

Loss of Forward Motion

When your company is crippled by a major data loss incident, instead of focusing on growing your business, you and your employees are trying to restore normal operations, so you end up losing forward motion.

Catastrophic data loss can take a long time to recover from and some files may never be able to be replaced. This can hamper a company and stunt their growth for months and years after the incident.

Loss of Your Company 

Some data loss is so severe it can cause companies to go out of business altogether because they’re unable to recover. Here are a few sobering statistics related to catastrophic data loss:

  • 51% of businesses that suffer severe data loss close within two years.
  • 43% of companies experiencing major loss of data close and never reopen.
  • 93% of companies that have lost a data center for at least 10 days during a disaster had to file for bankruptcy with a year.

Technology is such a large part of any organization these days, and that includes the digital assets that we access in the course of business. So, when those assets are lost, it can also mean the loss of a company.

Protect Yourself Against Devastating Data Loss!

ZZ Servers believes that proper data backup and recovery should be fast, easy, and reliable. We offer both business and home backup solutions that are affordable and that you can count on to have your back no matter what.

Contact us today to ensure your files are protected. Call 800-796-3574 or reach out online

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