Data Loss Cases and Stats in 2013 and How it Affects Businesses

by on November 18th, 2013

The substantial loss of data in different areas has raised the need of concern over specific levels of data security to prevent the occurrence of antagonistic situations. Data loss is one of the most terrible cases pulling businesses to a situation that grinds their productive specifics to the halt. If you discuss data at an organizational or a personal level, it makes difference interestingly. In either case, losing it is just ridiculous. Weather it is a business document or unofficial files, both have their significant importance in different closets. Looking specifically at organizational data where a single bit is most crucial, and if goes lost, it results in a long trail of loss.

Not surprisingly, there are times when data loss forces businesses to wind up. When departments in organizations look at discrepancies between actual and expected consequences, it sometimes seems as a quandary that does not suggest any solution to recover from such dilemma and unmet expectations result in stress. Here, we have created an interesting read that focuses on data loss cases and reflects consequences of such loss along with some stats.

Not all the data loss incidents have the same impact, however, definitely affect users eventually economically as well as mentally. Data loss may occur due to system error or human error; both have potential to create unmanageable situations.

Lately in May, in an incident at one of the Veterans Affairs Department’s data center, 464,000 personal records were removed permanently. The incident was an accidental deletion due to human error that included departmental details, active loan accounts, and other crucial information; such situations are self-explanatory. In response to this loss, the department is currently putting efforts and working on 860,000 claims. Naturally, consequences have let professionals down in the dumps, as the loss has greatly hampered the process effectiveness. Department is now facing questions about data loss prevention measures to be implemented in future to strictly restrict such destructive situation from occurring.

Veterans Affairs have asked applicants to upload their data again; however, the time taken by the process has not been disclosed yet.

Well, to deal with these cases, organizations use Vault backup systems for data storage. The system turns out to be helpful to store sensitive data, if any data loss incident occurs. In the previously mentioned case, the data center did not consider any such system that could save all-important information. Keeping any specific case aside, data backup is the most important and highly recommended technique to protect the data against such setback.

In the course of such events, organizations have invested good amount of money to bring prevention techniques in place, including detection methodologies, monitoring and security systems, and other additional tools. To implement as many as possible techniques to prevent data loss, experts at enterprises have been doing thorough research for in-depth risk understanding and for implementing the appropriate methods.

Businesses have their reputation in marketplace, which for sure gets affected if loss of information takes place. In different areas (such as education, medical care, finance sector, etc.), data loss is just like going through brain hemorrhage. Businesses are lean on to reputational arena, which in turn somewhere affects the cost factor. It is still bearable if data loss does not occur due to irresponsibility; however, the lack of care and attention (such as malicious activity, human errors, etc.,) put a question mark on the reputation of an organization.

IT departments are the most common victims of data loss and hence, they need to be more cautious about deploying intelligent technologies to prevent such situations. On one hand, employees in organizations continue to be a threat to companies, and on the other hand, some events like heavy malware attack and hacking contribute heavily to data loss that paralyzes operations by impacting different facets of the business. Subsequently, at the same time, it results in damaged relationships with clients, vendors, or partners. A business continuity solution is a mandate to give a rise to productivity; however, most organizations just neglect this need and encounter bad situations. Below is a detailing on what businesses have to pay due to absence of a solution in 2013:

  • Reported by Gartner, 25% of PCs will encounter data loss this year.
  • According to Forrester, 24% of companies disclosed that they have faced a huge data disaster.
  • Gartner stated that an average downtime cost for a medium business is $70,000 per hour.
  • As per a report by Gartner, a midsized company bears 16-20 hours of system, application, or network downtime every year.
  • According to Ponemon Institute, 95% of organizations encountered data outage last year.
  • Veeam Report 2013 revealed that 74% of companies do not take backup of virtual servers.
  • PricewaterhouseCooper reported that 70% of companies that face huge loss of data lose their business within a year.

Besides the major losses, there are many challenges industries come across, such as (according to Veeam Report 2013):

  • 23% of companies face problems to back up the data to tape.
  • 28% said that restores fail very frequently.
  • 38% of companies say that recovery takes much time.
  • 58% of companies are planning to replace their backup systems for virtual systems in next 24 months.

Any department has duty to serve its people well; therefore, personal data must be dealt with utmost sincerity with smart technologies implemented.

Well, above displayed stats reflect how businesses are impacted due to lost data. Whether it is about time factor, cost, or reputation of the company, loss affects organizations in various forms. However, in case of data loss, data recovery software is the greatest solution that gets you out of the situation. At the same time, it is important to choose a competent and efficacious software application that could achieve the goal effectively.