Data loss emergencies can hit any business without any prior indication of a potential problem. Sometimes data loss issues can be nothing more than a business hiccup and not to much data is lost, or the lost data can quickly be reworked to get the situation back to normal. Conversely though large data loss scenarios can have an devastating effect on a business and the more employees they have or the more reliant they are on their IT infrastructure, then the bigger the problem.
A typical example of a large data problem would be perhaps a failed disk or raid array on a Microsoft exchange server. E-mail is becoming the life blood of many organisations and without it effective client and supplier communications can quite literally cease.
The effect of a data loss will affect companies in different degrees so a larger corporation may suffer from a great cost due to the loss but a smaller company may struggle to survive the effects or may simply not have the cash flow in place to cope with a potentially very expensive recovery.
If the business has had the forethought to put a disaster recovery plan in place then this can be quickly be implemented to get your business into action but if you do not have one, or have completed you business continuity plan but have simply not implemented yet then the effect of the data loss can be quite far reaching.
The net effect of a data loss emergency can simply cost thousands and for large corporations tens and sometimes hundreds of thousands. The actual cost will course depend on the type of business involved and costs can be both tangible or intangible for example: the cost of lost sales can be easily measured by comparing a previous days trading.
This can be a useful yard stick to justify the return of investment in a business continuity plan so for example if a business was clearing only 2k in sales per hour then a days downtime could result in a gross loss of 16k in sales alone.
Cost of lost sales is only one of the aspects that can be measured but other costs need to be taken into consideration as well many of which can be swept under the table if not factored. These could include the actual cost of employing a data recovery company in the first place or even punitive fines for missing contractual deadlines depending on what industry your business is in.
As well as the tangible costs intangible costs also need to be considered which could include the loss of potential clients or business credibility, the management overhead needed to get the business back on line again and the cost of manual data entry from paper records (if they are held) to populate the database once it has been restored or the server has been re-built.
Another critical factor that should never be overlooked in the event of a data emergency is the restoration of the data. In many cases data can be irrevocably lost due to bungled attempts at recovery by inexperienced IT technicians.
Also if you are employing the services of one of the data recovery services companies you need to check their potential methodology and ensure they will not work on the actual donor disks as it is crucial to keep the main data source intact at all times.
Specialist business continuity providers will have strict protocols in place to ensure the absolute integrity of the source data. Working on the original data hard drives should simply not be an option because if the file structure or data is compromised in any way then your business could experience total data loss.
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