It is a common belief that unplanned network outages are just IT issues, when on the larger scale they are business issues. 80% of unplanned outages are due to ill-planned changes made by administrators, and 60% of availability and performance errors are due to faulty network configurations.
Many businesses take the business continuity for granted. Understanding how proper business-grade data backup, disaster recovery and business continuity can protect the business is important – and timely implementation and monitoring is crucial. Preventing data loss is most important. When proper measures are not in place, dealing with data loss can result both in financial and non-financial, negative impact on your business.
There are many aspects of the data loss impact. Consider revenue loss from downtime, damaged reputation and loyalty (did you know that ratio of good reputation vs. bad reputation speed is a startling 24:1 ?), human resource, regulatory and contract compliance and remedial impact.
Financial impact of data loss
The IT professionals believe it would cost their companies an average of $468,610 in lost revenue if they lost all their data files. Different types of businesses may experience different range of loss, for example:
Examples of estimated outage cost-per minute (CPM), according to Evolven
- Supply chain and management – $11,000
- E-Commerce – $10,000
- Customer Services – $3,700
- ATM/POS/EFT – $3,500
- Financial Management – $1.500
- Human Capital Management – $1.000
- Messaging – $1,000
- Infrastructure – $700
The Non-Financial Impact of Data Loss
62 % – nearly two/thirds of IT professionals had experienced some form of data loss in their careers. While 33% reported a profit loss and 32% referenced a missed business opportunity, many also admitted that data loss hurt their staff. These negative impacts on employees included:
Examples of estimated HR impact according to Carbonite.
- 25% of employees had their work/life balance disturbed
- 24% of businesses reported that office morale had suffered
- 21% of businesses micro-managed IT department
- 15% of employees were fired or laid-off
- 11% of employees quit
The risks of protecting data have become more complex as the technology and market for services has changed. To deliver an intelligent business continuity plan it’s imperative to provide proof of backup, instant recovery, a smarter backup chain, and secure data storage.