Lack of an appropriate Disaster Recovery plan can be extremely costly as statistics show that of companies who have experienced a major loss of business data, 43% never reopen, 51% close within two years, and only 6% will survive long-term. Data loss can come in many forms:
- Hardware failure
- User or human error
- Malicious security breaches or viruses
- Software corruption
- Natural disasters and environment failures
With so many potential sources of failure, it is hard to justify ignoring Disaster Recovery and hoping it won’t happen to you. Below are some recent statsitics that show how likely and costly events of data loss can be:
- 30% of all businesses that have a major fire go out of business within a year. 70% fail within five years. (Home Office Computing Magazine)
- 31% of PC users have lost all of their files due to events beyond their control.
- 34% of companies fail to test their tape backups, and of those that do, 77% have found tape back-up failures.
- 60% of companies that lose their data will shut down within 6 months of the disaster.
- Companies that aren’t able to resume operations within ten days (of a disaster hit) are not likely to survive. (Strategic Research Institute)
- U.S. businesses lose over $12 billion per year because of data loss.
- Hardware or system failure accounts for 78% of all data loss.
- Human error accounts for 11% of all data loss.
- Software corruption account for 7% of all data loss.
- Natural disasters account for only 1% of all data loss.
- The average company spends between $100,000 and $1,000,000 in total ramifications per year for desktop-oriented disasters (both hard and soft costs.) (Source: 7th Annual ICSA Lab’s Virus Prevalence Survey, March 2002)