The Real Cost of Data Loss
by: jameswalsh
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Word Count: 797
Data loss from physical damage might occur due to moisture contact, exposure to extreme temperatures, humidity variations, defective mechanical components, power surges, degradation of read/ write heads etc. Logical corruption occurs due to formatted file system, reinstallation of the operating system, software corruption, virus attacks, corrupted RAID etc.
Statistics
Statistics help an average person to understand what kind of financial damage data loss can cause to a company. A survey carried out revealed that 50% of companies had suffered data loss at some point in time. Of these 33% incurred direct financial losses.
Clever computer criminals have become increasingly sophisticated in their attacks, using highly undetectable viruses to sabotage data. Using state-of-the-art hacking methods they get online banking information.
Statistics reveal that one in three home computer users will face a virus attack at some point in time. Average losses from laptop or mobile hardware theft have increased considerably. The estimated value of worldwide losses from consumer identity theft reaches a couple of trillion dollars.
A computer is stolen every 43 seconds. 1 out of every 14 laptops is stolen. 57% corporate crimes are linked to stolen laptops. In a particular year, the US chalked up 59 billion in loss from proprietary data.
Some More Statistics
The enormity of data loss is difficult to comprehend. Bank of America announced that in a single incident 1.2 million customers’ account information was lost in transit. The University of California, one year, announced that a stolen laptop contained personal information of more than 98,000 people. A problem in Polo Ralph Lauren’s software system could possibly have exposed over 180,000 customers’ credit card information. Time Warner Inc. once had their data storage company lose tapes containing valuable employee information.
Natural Disasters and Terrorist Strikes
Even when companies protect themselves against technical and human error, it becomes very difficult to remain immune to natural disasters and terrorist strikes. The 9/11 attacks and disasters like Hurricane Katrina did not show any respect for encryption codes and firewalls. The devastation wreaked was almost insurmountable and the lost data was more than anyone could value. When companies lose massive volumes of data, their very functioning and existence are shaken. The whole process of data recovery can sometimes be impossible to undertake.
Cost of Data Recovery
Data Recovery is a specialised process that is carried out painstakingly by experts. Data recovery companies have to invest heavily in state-of-the-art infrastructure to provide the best data recovery services. To have clean room facilities is an expensive proposition. Further, the technology has to be up to date and the experts the very best. All this makes the process of data recovery expensive. The cost of data recovery not only depends on the cause of data loss but also on the volume of lost data.
When a company suffers huge volumes of data loss, it means the cost to recover it will also be huge. Further, it can be a long procedure if the damage is extensive, which means the company will lose real time which also translates into monetary loss. When the value of data loss is estimated and the cost to recover the loss is added, it becomes impossible for some companies to survive. It is estimated that at least 20% of the companies which suffer data loss wind up.
A company might also lose credibility with customers if the data loss has occurred due to human or technical error. In fact, many companies do not report data loss until such time that they have no choice but to declare bankruptcy. While data recovery is possible over 90% of the time, the cost can sometimes make it impossible.
Conclusion
It is only when one reads about companies winding up because of data loss, can one understand how deeply data has entered into every sphere of life. Just as data recovery is constantly in demand, companies leave no stone unturned to maximise security and backup methods to prevent data loss. On the one hand, companies invest in research and development to propel progress and on the other hand, they invest in safeguarding their efforts. It wouldn’t be too much of an exaggeration to say that data defines how we live in the modern world and that data loss can stagnate our progress.
About the Author
James Walsh is a freelance writer and copy editor. If you are concerned about data loss and would like more information on Data Recovery see http://www.fields-data-recovery.co.uk
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