The Costs of Data Loss Extend beyond Financial

By Tom FedroCosts of data loss by Tom Fedro

Companies today have become more and more dependent on the efficiency and security of their data.   It’s amazing how often, though, I come across people with absolutely no data protection strategy in place.  Any data loss hurts business. A large data loss interrupts the flow of work, and cause a loss of both profit and productivity.  I tell people all the time that protection of data should be a top priority.

Of course, they counter by pointing out that I’m a data storage expert and focus my work on data.  Maybe that does make me a more adamant advocate, but look at ways data loss can hurt you:

  1. Productivity.  You use your data in the course of your day.  How much work would you or your employees get done if you didn’t have access to it?
  2. Customer Loyalty.  How many times will losing your customers’ information occur before they stop being your customer?  Have you ever had that sinking feeling when a company you’ve used for a long time can’t locate your information?
  3. Intellectual Property.  What if your data is your product?  Do you want to lose code, lose ad copy, images, or publications?  How much loss it there when an intellectual asset isn’t protected intelligently?

These are just three quick examples of data loss costs.  There are a great many more that are possible and even probable.  Your data is a tool and an asset, and you’re not serving your organization well if you’re failing to plan correctly for protection.

Of course, in the end, it might be impossible to figure the complete amount of financial loss that is possible when data protection fails.  Consequences can vary from mere annoyance, to devastating, and there is no way to cope with the risk without figuring out a contingency plan. What has your company done in this area?  How safe is your data?  How are you managing your data storage?  Action on these questions now can save a lot more than a few dollars in the future.

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