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  • Writer's pictureEncompass IT Solutions

The Effects of Losing Business Data

Every organization generates and collects data in the course of business operations, and it isn't just the traditional financial or transactional information anymore. Digital transformation has allowed companies to take advantage of data generated on smartphones and smart devices, as well as Internet searches and website activity.

How that data is stored and managed differs widely, depending on each company's business needs and the applicable regulations. Complicating matters is the fact that much of this business data is unstructured, making it more difficult for the company to control and keep organized. Despite the technical challenges that this can present, that data can bring value to the business and should be factored into any data protection plan.

Data Loss = Devastating Results

Data loss can be devastating for a business, and no company is immune from the risk of losing access to their data. Data stored in the cloud can be accidentally deleted or compromised if the system is not secured correctly. Even the most resilient hardware can be damaged by a natural disaster or other catastrophic events. Cloud migrations and other network changes can leave some data completely unprotected, simply because of human error.

Loss of Productivity & Revenue

What happens to companies when their data is lost? Many companies experience downtime, which creates lost revenues and productivity for the business. Companies without comprehensive backups usually get hit the hardest when it comes to downtime. There may also be costs for hardware replacement, data recovery services, etc., depending on the incident.

Loss of Consumer Confidence

Downtime is especially painful when it has a direct impact on a customer or a community service. A loss of consumer confidence and trust can lead to lost opportunities and long-term brand damage. Other costs may come into play if a compliance issue was involved. Regulatory fines, legal expenses, and consumer remediation efforts can add up quickly. Not to mention, there is a loss of the time and money that went into building trust with the business' consumers in the first place. Trust takes years to build and seconds to lose.

Loss of the Whole Business

The worst-case scenario — going out of business — is also one of the most common: 40% of businesses fail to reopen after a disaster, and another 25% fail within one year. Over 90% of companies fail within two years of a disaster.

Reliable data protection is a must-have in any business. Encompass IT’s Cloud Data Backup Services are powerful solutions that can protect both your data within on-premises servers and within the cloud. Give us a call at (860) 785-6233 or contact us to help you minimize downtime and keep your company in business.

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