What is a disaster? It could be a technical glitch, human error, virus or nature’s fury like Hurricane Katrina. These can cause havoc especially in terms of data loss. Disaster recovery plan is like an insurance policy for your data and business that protects your company and business during the occurrence of out of control events. We have compiled a few related statistics as below.
- 90% of businesses losing data from a disaster are forced to shut down within two years.
- The survival rate for companies without a disaster recovery plan is less than 10%.
- Only 44% [of businesses] successfully recovered information after a recent data recovery event.
- 53% of claimants never recoup the losses incurred by a disaster.
We have also outlined top 4 reasons justifying why backup and disaster recovery plans should be treated as a priority.
Machines and Hardware Fail
Technology, as we know it today, has grown by leaps and bounds and is still advancing. Technology helps ease our work – however, it does have its own set of issues and glitches. Identification and elimination of any single point of failure in an IT infrastructure setup can be a very costly affair.
This is the only safeguard to protect your business from service disruptions or data losses. The best alternative is to take regular data backups with a leading and highly secure managed hosting service provider. This will minimize interruptions and ensure business continuity in case of IT infrastructure disruptions.
Humans Make Mistakes
Where there are humans, there are errors, small or big. This is an inherent quality of human nature that is universally present. The effects can vary from omission to data deletion to incorrect data entry. Good quality assurance processes are a must to minimize errors, however, it is imperative to have precautionary and fallback mechanisms in place such as an online backup solution.
Nature is Unpredictable
“Hell hath no fury like Mother Nature scorned”. This is an old saying that signifies the extent of unpredictable damage that can happen when Mother Nature unleashes her fury. Companies and establishments can go out of business due to their inability to resume operations; they did not have disaster recovery plans in place. As per data estimates, nearly 80% of companies that do not have business continuity plans for disaster recovery, go out of business when they experience disruptions of at least five days.
Customer Retention is costly; customer reacquisition is devastatingly expensive.
Customer retention is comparatively easier and cost effective versus acquiring a new customer. However, when disaster strikes especially on the IT infrastructure resulting in data loss, this also greatly impacts customer’s trust in the security and company. Customers may have to bear losses which may run to more than six figure amounts in terms of dollars. This is unacceptable from any standard for any customer or end user. Disaster recovery plans and business continuity plans will ensure that customer trust is maintained – thus proving highly cost effective in the long run especially for customer retentions.
To summarize, all businesses are vulnerable to an IT disruption. Disaster Recovery Plans (DRPs) or Business Continuity Plans (BCPs) will help in minimizing losses and ensure customer retention. HelpMates can help you to develop and implement an effective DRP which will help you prepare for IT disturbances without losing customers, their trust and your business.