While IT has been getting less and less expensive, many companies still resist investing in a data recovery strategy. This mistake can result in much higher costs as soon as disaster strikes – often more than 3 times the cost of a disaster recovery strategy. Many companies never recover from disaster if they fail to have an adequate backup and recovery system in place.
Even minor technology failures can have catastrophic effects without a strong data backup and recovery plan in place. If a simple flood or hard drive failure causes you to lose critical emails, accounting records, vital customer data, or some other information that is essential to your business, the cost will be far higher than that backup and recovery plan which could have mitigated such a disaster. Here’s why:
High productivity losses from downtime Very recently, a company lost their email server to a preventable incident. During this time their 100 employees had nothing to do because they were unable to access their emails or network drives.
If each employee is paid $50 per hour, with 100 employees unable to complete their work, the company winds up paying $200,000 in lost productivity for those 5 days of downtime. This doesn’t even include the costs to recover data, restore the company’s network and repair the damage.
If they had a solid backup and recovery strategy like Applied Tech’s, they would have been back up and running again in just hours, saving hundreds of thousands of dollars in lost productivity.
Lost customers, reputation, and revenue Depending on your business, there are many potential problems that happen when your network goes down or data is lost if you don’t have good backups. Some examples might be:
- An insurance company that doesn’t send out their renewal notices causing lapses in coverage, lost clients, and even lawsuits
- A hotel that loses reservations creating a customer service crisis
- The financial advisor who loses customer investment information and has their reputation ruined through word of mouth
A solid backup and recovery plan is critical By having a solid and reliable backup and recovery system in place, companies can easily back up data as well as recover it quickly. Applied Tech uses Veeam for all our managed IT clients. Veeam securely stores company data in Azure cloud where it is protected from every type of disaster. When it’s needed, the data is easily accessed and quickly restored, which is just as important as saving the data itself.
When data is irrecoverable, the costs can be in the hundreds of thousands of dollars or more. A single catastrophic data loss could be enough to cripple many small companies. Often this type of disaster may even put the entire company out of business if the right backup and recovery measures are not in place, and completed quickly with minimal downtime. Studies have shown that due to poor future planning, as much as 40% of businesses never recover from a major disaster such as a hurricane or other disaster.
How prepared are you for the costs of a simple IT glitch? We can help you mitigate disaster before it strikes. Sign up below or call us at (855) 729-1300.