Autor: jameswalsh
What is Data Loss?
The virtual world is vulnerable to many inbuilt and invented fragilities that can threaten the sanctity of data. On the other side, the real world is open to possibilities of natural and man made disasters that can sometimes have a damaging impact on the storage media retaining costly data. When the lost data belongs to a corporate entity, the losses could run into billions of dollars.
Consequences of Data Loss
Modern corporate organizations are basically speaking a network of various digitized networks that sustain and thrive upon meticulous computing for their growth and survival. If we are able to grasp the complexity of this statement then the consequences of a major data loss incident surely point towards a grim scenario. A data loss incident practically has the capacity to paralyze all the organs of any modern organization and can literally push it towards the verge of bankruptcy. Today, different departments in all the bustling organizations are digitally interconnected and rely on the exchange and sharing of data for securing functional efficiency.
Ancient Indian tradition believes that most of the diseases in the human body are caused due to some obstruction to the free flow of life force within it. Whether it is true or not is debatable. However, it is certainly true that survival of modern businesses depends upon a smooth flow of information. A data loss incident obstructs this free flow of information and clogs the IT network responsible for ensuring connectivity within and without an organization. Most of the departments within a modern organization can come to a standstill, in the absence of the appropriate support data necessary for conducting critical functions.
Data Loss and Customer Confidence
Modern businesses are about creating perceptions. Concept marketing is the name of the game. Businesses try to gauge the consumer expectations through meticulously designed surveys and leave no stone unturned in convincing their prospective customers regarding the superiority of their products and services through advertising campaigns, media and personal contact programs. Computer networks are the most important means of ensuring customer contact, sales and after sales support. Any hampering of such studies and services due to data loss has the potential to shake the confidence of most of the customers regarding the claims of the concerned organization. This could jeopardize the survival and growth of any firm resulting in massive losses.
Data Loss and R&D Facilities
With an increase in the customer expectations and tough market competition, businesses are always under pressure to improve on their range of products. In such a scenario, research and development has a major role to play in ensuring market success. The problem is that R&D is a cash guzzling activity and the expected outcome depends upon the synthesis and analysis of resulting data. Any data loss incident in the research and development wing of an organization could throw it back by decades. In the absence of an ability to come out with timely innovations, a company strands no chance of facing any stiff competition.
Financial Damage Due to Data Loss
Relevant statistical data provided by many reputed institutions is sufficient to open the eyes of any individual regarding the gravity of data disasters. 30% of all the businesses that face a major data loss disaster close within the very first year of this accident. 70% go bankrupt within the next five years. As per a survey, American businesses suffered losses to the tune of $7.6 billion in 1999 due to data losses resulting from viruses only. It has been seen that data loss incidents dip the stock prices of many companies beyond the limit of survival. Such incidents could make the potential investors to back off from supporting the affected business.
Calculating Damages Due to Data Loss
Considering the above mentioned facts it would be safe to say that it is next to impossible to accurately calculate the damages due to a data loss disaster. They ambit of any major data loss disaster is too wide to come into the grasp of financial analysts. Data recovery from a single hard drive could sometimes cost upwards of $7,500. It takes $19,000 to retype 20MB of accounting data.
Thus it is far easier to install systems to avoid data loss then to indulge into the arduous task of calculating damages due to data loss. And anyway most of the times it is too late to be of any practical use.
Source: Free Articles
The virtual world is vulnerable to many inbuilt and invented fragilities that can threaten the sanctity of data. On the other side, the real world is open to possibilities of natural and man made disasters that can sometimes have a damaging impact on the storage media retaining costly data. When the lost data belongs to a corporate entity, the losses could run into billions of dollars.
Consequences of Data Loss
Modern corporate organizations are basically speaking a network of various digitized networks that sustain and thrive upon meticulous computing for their growth and survival. If we are able to grasp the complexity of this statement then the consequences of a major data loss incident surely point towards a grim scenario. A data loss incident practically has the capacity to paralyze all the organs of any modern organization and can literally push it towards the verge of bankruptcy. Today, different departments in all the bustling organizations are digitally interconnected and rely on the exchange and sharing of data for securing functional efficiency.
Ancient Indian tradition believes that most of the diseases in the human body are caused due to some obstruction to the free flow of life force within it. Whether it is true or not is debatable. However, it is certainly true that survival of modern businesses depends upon a smooth flow of information. A data loss incident obstructs this free flow of information and clogs the IT network responsible for ensuring connectivity within and without an organization. Most of the departments within a modern organization can come to a standstill, in the absence of the appropriate support data necessary for conducting critical functions.
Data Loss and Customer Confidence
Modern businesses are about creating perceptions. Concept marketing is the name of the game. Businesses try to gauge the consumer expectations through meticulously designed surveys and leave no stone unturned in convincing their prospective customers regarding the superiority of their products and services through advertising campaigns, media and personal contact programs. Computer networks are the most important means of ensuring customer contact, sales and after sales support. Any hampering of such studies and services due to data loss has the potential to shake the confidence of most of the customers regarding the claims of the concerned organization. This could jeopardize the survival and growth of any firm resulting in massive losses.
Data Loss and R&D Facilities
With an increase in the customer expectations and tough market competition, businesses are always under pressure to improve on their range of products. In such a scenario, research and development has a major role to play in ensuring market success. The problem is that R&D is a cash guzzling activity and the expected outcome depends upon the synthesis and analysis of resulting data. Any data loss incident in the research and development wing of an organization could throw it back by decades. In the absence of an ability to come out with timely innovations, a company strands no chance of facing any stiff competition.
Financial Damage Due to Data Loss
Relevant statistical data provided by many reputed institutions is sufficient to open the eyes of any individual regarding the gravity of data disasters. 30% of all the businesses that face a major data loss disaster close within the very first year of this accident. 70% go bankrupt within the next five years. As per a survey, American businesses suffered losses to the tune of $7.6 billion in 1999 due to data losses resulting from viruses only. It has been seen that data loss incidents dip the stock prices of many companies beyond the limit of survival. Such incidents could make the potential investors to back off from supporting the affected business.
Calculating Damages Due to Data Loss
Considering the above mentioned facts it would be safe to say that it is next to impossible to accurately calculate the damages due to a data loss disaster. They ambit of any major data loss disaster is too wide to come into the grasp of financial analysts. Data recovery from a single hard drive could sometimes cost upwards of $7,500. It takes $19,000 to retype 20MB of accounting data.
Thus it is far easier to install systems to avoid data loss then to indulge into the arduous task of calculating damages due to data loss. And anyway most of the times it is too late to be of any practical use.
Source: Free Articles
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