Data Loss, Explained by A Managed Cloud Service Provider

 

Backing up your data can seem trivial when everything is going smoothly. However, if a system crashed or the power went out in the middle of a project, it can become a very big problem. Especially for startups, backing up your data is an essential part of your network.

According to a 2019 study, 1 in 5 small businesses close when they experience an attack by malware. When a cyberattack happens to a startup or small to medium businesses (SMBS), the recovery is very costly in time and money. Read on as we explain what the real cost is of not having data backed up and how you can utilize managed cloud service providers to prevent shutdowns.

What is the financial cost of data loss?

The average cost of data loss fluctuates by the year. A study done in 2018 by IBM shows that in 2018, the average global cost per data breach incident was around $3.9 million. Recovery costs can be significantly higher or lower depending on the amount of time passed between the initial breach and resecuring your network.

In 2021, the average cost rose almost 10% from $3.9 million to $4.2 million. This is the highest average cost of data breaches in 17 years.

Downtime due to data loss can, also, provide financial loss. When your network has been breached, the company’s normal operations come to a complete stop. Depending on the company’s size, there can be a loss of thousands of dollars per hour if the network is offline.

What is the non-financial cost?

Losing data can cause a major loss in money; however, there can be additional non-financial consequences as well, such as in the case of a network halt. There can be a stop in production which can affect productivity, reputation, and push out of product.

Service interruptions can cause users to be irritated and can damage loyalty. The reputation of the business is vital. Especially with social media these days, a small negative interaction can cause a large pushback.

What factors can cause the loss of data?

Several different factors can cause the loss of data. Every business is different and there will not be the same cause across each business. Here are a few common causes:

-        Failed Power

-     Accidental / Intentional Data Removal

-    Network Malfunction

-      Natural Disasters

-      Hacking / Malware

-       Theft

What can be done to prevent data loss?

Data loss can be prevented by having backup services in place. Many companies benefit from using managed cloud service providers to set up a cloud to back up data. These services can provide cybersecurity as well as extra storage just in case your companies network shutdown or is compromised. This is what we provide with our Bright Cloud Private Cloud Hosting Service. Contact us today to learn how to secure your data.