There is a sweat inducing, twist in the stomach for the moment any individual realises they have just lost digital data.
Most computer users will have had their own experiences with data loss at some time or other. In many personal cases, the loss is relatively minor and can be reinstated fairly quickly. The amount of business data being stored digitally however, is rising to record levels. Our reliance on that data becomes critical. Mass data loss can quite easily go beyond gut wrenching, to business ending.
According to an industry study by The Diffusion Group, 60% of companies that lose their data close down within six months. A staggering 72% of businesses that suffer major data loss disappear within 24 months.
The British Chambers of Commerce carried out a similar study. It found that 93%of businesses that suffer data loss for more than 10 days file for bankruptcy within one year, 50% immediately.
Hardware malfunction is often one of the main reasons a business can stuff data loss. Other main causes of data loss are employee negligence including misplacing of USB sticks and laptops, software corruption, viruses, natural disasters and increasingly, hacking.
What is the Cost of Lost Data?
UK firms will be forced to pay an average of £1.9 million a year due to lost data. That’s £71 per record for every instance of data loss they experience. This has increased year-on-year for the third year running.
Costs of data loss can include the clearing up process, replacing equipment, investigations into the incident and the efforts to rebuild customer trust.
It does seem however, there is a struggle between firms understanding the reality of data loss, verses implementing solutions to solve the problem. According to a study carried out by global market intelligence firm IDC, 40% of SMEs don’t back up their data at all. When they do 40-50% of those backups are not fully recoverable. They also found that 60% of all business data is held on PC desktops and laptops. This date often therefore, doesn’t get backed up as part of more regularly adopted company server backup schedule.
Online storage solutions mean that protecting data is easier than ever. Data can be backed up via the internet to offsite secure storage centres. Surprisingly, adoption rates can still be low – from big businesses to small. Research has shown that business owners are hesitant to try these new technologies. They don’t want to stray from familiar systems or invest in new ones.
The DocuWare Cloud offers companies the highest availability and reliability for all their digitally stored documents. It can ensure information remains available even in the case of a hardware crash. Interested? Get in touch with DocTech about a free 20min web demo.