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How much can a data disaster really cost?
One of the largest reasons for major data recovery disasters stems from traditional computer user belief that "Nah... it won't happen to me".
Whether its the inability to perform back ups, the lack of technical resources to perform system checks, or simply personal neglect,
"more than 65% of corporate PCs remain unprotected and are not backed up".
To illustrate the impact that data loss can have we have provided the following example below:
Based on research done by Pepperdine University, it was proven that 6% of all PCs will suffer an episode of data loss in a given year.
the first thing we will do is figure out the total average cost of a data recovery / data loss incident. In order to find the total average there are three main costs that are involved. here is the breakdown:
- Cost of technical support in the recovery effort: $380.00
- Cost of lost productivity due to user downtime: $177.00
- Cost of lost data: $2000.00
- TOTAL (per incident): $2557.00
Now, imagine how this figure multiplies when you consider the number of PCs in your organization. Take, for example, a Fortune 1000 company with 50,000 employees, each with one PC (a conservative estimate); based on the figure given by Pepperdine's study, we can safely say that 6% of the 50,000 PCs will experience an episode of data loss, causing costs to sky rocket:
- 50,000 x 6% (.06) = 3000 PCs experiencing data loss per year.
- $3000 x $2,557 = $7,671,000
- Bottom Line: $7.6 million expended every year due to lost PC data alone.
Therefore, it is very important for companies to consider the potential impact and increased costs that may occur by avoiding proper back up of corporate data.
What companies have to realize is that data represents 'knowledge capital'. Without it, a business simply connot sustain itself. Therefore, the proper steps should be taken to ensure that this vital aspect of buiness operation is streamlined and protected.
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