subject: Data Loss Incidents And Their Effect On Small Business [print this page] A study done by the business information site Datamonitor.com reported that about one-third of IT decision-makers believe that a major data loss
incident at their companies could lead to bankruptcy so one can only imagine the panic that could strike a small business owner when the daily cash flow stops because a hard drive has failed and wiped out the customer records or shipping schedules. Seventy per cent of small business owners stated in a survey by Verio that even one disruption by data loss could be significantly costly. In the same survey, over one-half of the respondents reported having already experienced some data loss, so their concerns are very real.
In about 40% of cases there has been no physical damage to the hard drive. The data may be retrieved by an in-house technical support person. These cases are often caused by computer viruses, human error, or software corruption. More expert emergency data recovery is necessary when material considered valuable has been lost due to hard drive failure. Specialized facilities at data recovery companies include clean-rooms - sterile laboratories ensure that no vapors or dust corrupt the transistors and parts. Drive cases should never be opened outside of a clean-room or it will result in the physical destruction of the disk's magnetic layer and the complete loss of data. Recovery of data is a delicate operation where a slight mistake may cost the client a great deal of money. The cost of data recovery can vary widely, depending on numerous factors, including the size and type of storage media, severity of damage, and urgency. Time-sensitive emergency data recovery is more costly than regular cases, but the average cost of recovering data on a 160GB hard drive would cost $1,500 depending on the vendor.
Although hard drive manufacturers brag of a mere 1% failure rate, a study by Schroeder & Gibson in 2007 found that a 2% - 4% failure rate is reported - going as high as 13% under some conditions. When the damage is on the hard drive, recovery experts should be used rather than in-house computer support specialist; even if the price is five time greater this is justified in cases where the lack of productivity in downtime, the lost contracts, and inability to invoice and process payments correctly present a far greater loss so steps must be taken to ensure every effort is made to restore business as usual. Most data restoration companies can provide service within 24 to 48 hours and the growing number of competitors in the market has led to free assessments and guarantees that data will be recovered or there will be no charge. That is small consolation when bigger things are at stake in incidents where the data is vital and is needed immediately to prevent further financial damage.
Statistical research from different sources paints a frightening picture of the obstacles faced by business owners when things don't go smoothly. Computers may be wonderful but they break at the most inopportune times. There is a one in ten chance a hard drive will fail, and they inevitably wear out after about five years. In addition to hard drive failure, everyone from corporations to individual users face other problems such as computer theft (or loss), hacking, human error, improper disposal, malware, a malicious insider, and viruses. If steps are not taken to back-up data whenever possible, the damage of data loss can be minimized.
by: Pat Boardman
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