Disaster Recovery: Preventing loss

Have you ever lost an hour of work on your computer?

Now imagine if you lost days or weeks of work – or imagine losing your client database, financial records, and all of the work files your company has ever produced or compiled.

Imagine what would happen if your network went down for days, where you couldn’t access e-mail or the information on your PC. How frustrating would that be?

Or, what if a major storm, flood, or fire destroyed your office and all of your files? Or if a virus wiped out your server…do you have an emergency recovery plan in place that you feel confident in?

How quickly do you think you could recover, if at all?

Many small business owners tend to ignore or forget about taking steps to secure their company’s network from these types of catastrophes until disaster strikes. By then it’s too late and the damage is done.

But That Could Never Happen To Me!

(And Other Lies Business Owners Like To Believe About Their Businesses…)

After working with a number of small and mid-size businesses in Escambia and Santa Rosa counties, I found that 6 out of 10 businesses will experience some type of major network or technology disaster that will end up costing them between $9,000 and $60,000 in repairs and restoration costs on average. 

That doesn’t even include lost productivity, sales, and client goodwill that can be damaged when a company can’t operate or fulfill on its promises due to technical problems.

While it may be difficult to determine the actual financial impact computer problems have on your business, you can’t deny the fact that they do have a negative effect. If you’ve ever had your business grind to a screeching halt because your server crashed, you must have some idea of the frustration and financial loss to your business even if you haven’t put a pencil to figuring out the exact cost.

Most Computer Problems Are Hidden And Strike Without Warning, And At The Most Inconvenient Times

Hardware failure, viruses, spyware, and other problems usually aren’t detectable until they strike by causing a server to go down, data to be lost, or some other catastrophe. Viruses and spyware are particularly sneaky because they are designed to hide themselves while they do their damage. For example, spyware can secretly transmit information about you and your company to an outsider without being visible to you.

Even if your network was recently audited by a computer consultant, viruses, spyware, and hackers are constantly attacking your network (that is why we constantly monitor our clients’ networks because you never know when a new virus is going to strike).

Unfortunately, most computer consultants only offer “break-fix” services. That basically means when something breaks or stops working, they come in and fix it. While this may seem like a good setup for you, it actually leaves you wide open to a number of threats, problems, and other disasters because it is reactive rather than proactive maintenance.

Take a look at these statistics:

 Companies experience an average of 501 hours of network downtime every year, and the overall downtime costs an average of 3.6% of annual revenue.  (Source: The Costs of Enterprise Downtime, Infonetics Research)

 93% of companies that lost their data center for 10 days or more due to a disaster filed for bankruptcy within one year of the disaster, and 50% filed for bankruptcy immediately. (Source: National Archives & Records Administration in Washington.)

 20% of small to medium businesses will suffer a major disaster causing loss of critical data every 5 years. (Source: Richmond House Group)

 This year, 40% of small to medium businesses that manage their own network and use the Internet for more than e-mail will have their network accessed by a hacker, and more than 50% won’t even know they were attacked. (Source: Gartner Group)

 Of those companies participating in the Contingency Planning & Management Cost of Downtime Survey: 46% said each hour of downtime would cost their companies up to $50,000, 28% said each hour would cost between $51,000 and $250,000, 18% said each hour would cost between $251,000 and $1 million, and 8% said it would cost their companies more than $1million per hour. (Source: Cost of Downtime Survey Results, 2001.)

 Cyber-criminals stole an average of $900 from each of 3 million Americans in the past year, and that doesn't include the hundreds of thousands of PCs rendered useless by spyware. (Source: Gartner Group)

What These Failures Are REALLY Costing Your Business

Even if you don’t factor in the soft costs of lost productivity, there is a hard cost of repairing and restoring your network. Most major network repairs will require a minimum of four to eight hours on average to get the network back up and running. Plus, most consultants cannot get on-site to resolve the problem for 24 to 48 hours. That means your network could be down for one to two days.

Since the average computer consultant charges over $100 per hour plus a trip fee and a surcharge if it’s an emergency, the average cost of these repairs is $600 to $1,000; and that doesn’t even include any software or hardware costs that may also be required. Over a year, this results in $1,800 to $3,000 in costs without even considering hardware and software costs, or other soft costs of lost sales and work hours. Of course, those numbers quickly multiply with larger, more complex networks.

What’s most exasperating about this situation is that 100% of these disasters and restoration costs could have been completely avoided or greatly mitigated easily and inexpensively with a little planning and proactive maintenance.

Why Small Business Are Especially Vulnerable To These Disasters

With the constant changes to technology and the daily development of new threats, it takes a highly-trained technician to maintain even a simple 3 to 5 person network; however, the cost of hiring a full-time, experienced technician is just not feasible for most small business owners.

In an attempt to save money, most try to do their own in-house IT support and designate the person with the most technical expertise as the part-time IT manager. This never works out because this makeshift IT person has another full-time job to do and is usually not skilled enough to properly support an entire computer network anyway.

This inevitably results in a network that is ill-maintained and unstable. It also means that the backups, virus updates, and security patches are not getting timely updates, giving a false sense of security.

Visit our website www.youritpensacola.com to learn more about our Disaster Recovery services.