3 Steps to Improved BC/DR Planning


Step 1 – Recognize the Need and Importance

Business continuity and disaster recovery strategies tend to be on the to-do lists of many SMBs, but they are often delayed as more urgent business issues emerge. U.S. businesses lose roughly $1.7 billion in profit each year from network outages according to the same 2011 CDW business continuity survey referenced earlier. Obviously, it isn’t smart business for an SMB to let business continuity and disaster recovery planning become an afterthought.

To structure a solid business continuity plan, SMBs must be prepared for all possible disruptions. It is important to note that business continuity goes beyond being prepared for natural or man-made disasters. We are now so technologically dependent that BC/DR plans must be in place to counter any disruption – big or small – that threatens business and profitability. Internal technical or infrastructure failures or cyber-attacks are obvious examples. Small internal “single-points-of-failure” can bring down an entire operation.

 

Step 2 – Impact Analysis and Risk Assessment

Constant availability is critical to success. In order to minimize downtime, it’s important to determine what technology is behind each phase of your business operations. Knowing the technology infrastructure of your business allows for a comprehensive impact analysis and a better grasp of the impact on business operations when specific technology fails or becomes unavailable – even for a short period of time.

Determining what could unexpectedly bring down each piece of that infrastructure is risk assessment. Risks come in the form of either internal or outside threats. Internal threats can be anything from an application failure, disk crash, and server malfunction to human error or a bitter employee. External threats can vary depending on location – natural disasters like hurricanes, earthquakes, tornados, floods, and fires, as well as man-made events like power outages, acts of terror, and accidents can knock out services. Additionally, our dependency on technology leaves firms susceptible to cyber-attacks like malware, computer viruses, phishing schemes, and the theft of personal mobile devices used for work purposes.

While major disasters do occur, and shouldn’t be overlooked, it is the smaller everyday disruptions like power outages, server crashes, email issues, equipment failure, and lost or corrupted data that pose the bigger risk to business.

Doomsday prepping may be the rage these days, but a sound BC/DR plan typically begins by focusing on addressing the day-in and day-out disruptions first. Documenting, reviewing, communicating, and testing the effectiveness of smaller response scenarios will better prepare businesses for potential disasters and longer-term disruptions.

 

Step 3 – Look to Recent Tech Trends That Simplify Planning

Recent technology developments like server and desktop virtualization, cloud computing, and mobile devices are beneficial to SMBs looking for BC/DR solutions.

Virtualization – BC/DR preparedness may be the most compelling reason to consider virtualization. Virtualization allows businesses to condense data and applications onto fewer servers – taking up less space and consuming less power. Virtualization allows small-to-medium sized businesses the benefit of high availability (HA) without the added expense of building a backup data center. Operations can be restored faster as the entire system can be brought back in a single virtual container.

Cloud Computing – More firms are moving to the cloud for backup services. The cloud has enabled small and medium sized businesses to backup operations away from their primary location and enhance their business continuity process at a reduced cost.

Cloud-based Software-as-a-Service (SaaS) packages often come with built in business continuity solutions that can automate data backup processes onsite or off-site – spreading out risks and minimizing the impact of a disaster. Data, servers, software, and tools can be stored in the cloud and remain safe if a business is hit by a computer virus or disaster. The cloud also allows remote workers to access an organization’s communication and collaboration tools, further allowing for “business as usual” in the event of a serious disruption. 32

Although it is understandable that ownership and upper management at small to medium sized businesses are hesitant to spend money, BC/DR planning is a lot like insurance. It is human nature to think that bad things won’t happen to you, but the investment pays off the when you’re hit by an extreme event or emergency.

New technology trends and the back-up-as- a-service, remote backup, and online backup services provided by MSPs have given SMBs the ability to safeguard their business operations at a reasonable cost. Money and resources can no longer be an excuse for a lack of solid BC/DR solutions. There is way too much at risk. Plan now and CLICK HERE for a free network assessment.

Business Continuity and Disaster Recovery for Small Businesses

31 As a small business owner, you owe it to yourself, your employees, stakeholders, and any customer you serve to honestly answer this one question: Is your business resilient enough to withstand short or long-term interruptions to its operations?

The answer should be immediate. If you have to pause or think for one second before responding, the answer is no. Each day of business brings with it unforeseen risk. Whether it’s catastrophic weather conditions, cyber- security threats, or the vulnerabilities of the technology we’re dependent on to perform daily work functions, there must be both a business continuity (BC) and disaster recovery (DR) plan in place. There must also be complete confidence in the effectiveness of the BC/DR strategies that are implemented.

The truth of the matter is most small-to-medium sized businesses (SMBs) aren’t doing nearly enough when it comes to continuity and disaster planning. It’s inconceivable that in this era where smaller businesses store more sensitive data than ever before, and the risk of losing this data is so great, that a 2011 Systematic survey revealed that up to 57% of small businesses still have no business continuity or disaster recovery plan in place.

A few years ago, a study conducted by Forrester Research concluded that 66% of businesses with fewer than one hundred employees admitted to having no tested response to not just tech issues like a downed server or network but disasters, emergencies, and power outages.

Let’s break down some of the potential costs of short and long-term business interruptions, why far too many SMBs don’t have a solid business continuity/recovery plan in place, and the necessary steps SMBs can take to get prepared.

 

A Competent BC/DR Strategy Is a Must

Often misconceived as a problem for the “big guys,” business continuity is a concern for businesses and organizations of all sizes – whether there are 5 or 5,000 employees. The costs of having no solutions in place are too high for many smaller companies to rebound from.

Several hours of unplanned downtime can result in thousands of dollars lost each hour. That’s the kind disruption a small business may face from a shorter-duration tech issue or power outage. Imagine the consequences of longer lasting outages, where a business may be down for days or weeks, as seen in natural disasters like Hurricane Sandy and Hurricane Katrina, or acts of terror like the 2001 World Trade Center attack.

Beyond the immediate tangible costs of outages like lost productivity and revenues, there is also an intangible domino effect that may be harder to quantify. The repercussions can greatly exacerbate the total losses over time, for instance:

  • Customers/Clients Jumping to a Competitor: The web hosting company1&1 Internet, Inc. reported that 72% ofweb users admit to abandoning a businessfor a competitor if they can’t instantlyaccess a company website or encounternumerous error messages, problemsplacing an order, or issues accessing onlinefeatures/support. People want immediategratification today and will take theirdollars elsewhere if they don’t get it.Even more alarming is the fact that 58%are likely to never return, which meansthe loss of long-term revenue streams.Perhaps they may be more forgiving inthe event of a crisis like a natural disasterbut there will still be those who go to acompetitor and never come back.
  • Word-of-Mouth/Negative Brand Reputation: Thanks to the power of socialmedia, those frustrated by instances ofdowntime will take to Facebook or Twitterto quickly spread their vitriol. Brandbuilding and reputation managementare critical to small businesses. Anynegative attention and publicity broughton by downtime can have long lasting consequences.
  • Disgruntled Employees: In small companies or organizations, the burden of troubleshooting recurring tech issues or getting a system back online will typically fall upon the shoulders of an already busy, possibly overworked, employee. This multi-tasking employee will have to sacrifice bigger priorities to constantly play damage control. He or she will sometimes have to do this outside of normal work hours and may be pulled away from projects that generate revenue. If they aren’t happy about this, they may seek employment elsewhere. Both high turnover and the inability to use an employee’s knowledge and skill set for revenue generating tasks are costly to small-to-medium sized businesses.

Too Many SMBs Aren’t Prioritizing BC/DR Plans

Businesses are fueled by information. They are defined by their ability to efficiently and safely handle the data and vital information they generate or process on a daily basis. It is this data that keeps their day-to-day business functioning, ensuring optimal customer service and interaction. While protecting data is a priority for large enterprises, small-to-midsize business owners have the same responsibility but are challenged by limited budgets. For a start-up, the entire focus must be customer-facing, with few resources directed at anything not driving short-term revenues.

This means far too many SMBs today are failing to employ some very basic safeguards to ensure BC/DR.

A September 2011 CDW Business Continuity Straw Poll suggested that 82% of U.S. service disruptions could be reduced or altogether eliminated by even the most basic BC/DR plan. So why aren’t more SMBs taking these precautions?

  • Failure to Recognize a Problem: Most SMBs don’t think about business continuity or disaster recovery until it’s too late and they’re scrambling to recover after being taken down. It’s ironic since so much focus goes into keeping a business sustainable by growing sales, or outdoing the competition, yet a vital part of “staying in business” is overlooked when it comes to their supporting technology.
  • Intimidating and Complex Planning Tools: SMBs looking to streamline costsand simplify procedures will sometimeswrite off BC/DR practices as unnecessary.Those who do recognize the importanceof preparedness are often overwhelmedby the complex technical jargon thataccompanies business continuity planningand don’t know where to begin when theyhear terms like “business impact analysis”and “risk assessments.”
  • They Feel as if They Can’t Afford It and They’re On Their Own: Decision-makers may know they’re living on theedge without a tested strategy, however,they don’t realize that new technologytrends, and the availability of productslike managed service providers (MSPs),can reduce costs and save on resources.MSPs can leverage their knowledge of anSMB’s specific needs with the numerouscloud and hosted backup and recoverytools currently available today.

Create a plan. CLICK HERE for a free network assessment.

 

Prevent Data Loss With IT You Can Trust

7 Small business has changed dramatically within the last decade. No change has been more profound than our dependency on information technology (IT) systems to support critical day-to-day business functions.

In today’s increasingly competitive high-tech environment, it is critical that all business operations run smoothly and efficiently. Business momentum, employee productivity and customer service all depend on an IT infrastructure that must be both accessible and secure at all times. Constant network availability has become essential to most small and midsize businesses (SMBs) today.

This reliance on IT systems has also created a stronger link between data center accessibility and total cost of ownership (TCO). Even minimal amounts of unplanned downtime today will result in lost revenue, productivity and negatively impact overall brand reputation.

Preventing or rebounding from downtime was once deemed the IT team’s problem, however, this unprecedented modern day dependence on technology has made the frequency and costs of downtime more of a business problem. Prolonged or recurring downtime can cripple small businesses and requires the attention and understanding of C-suite management in order to be properly addressed.

Unfortunately, many executives at SMBs are still not as tuned into daily network operations as they need to be. For this reason, they lack a true awareness of the frequency of downtime. This lack of insight and visibility is regrettably putting far too many SMB sat an increased risk for downtime and the costs associated with it.

Prevent detrimental downtime. CLICK HERE for a free network assessment.

The Basic Services of an MSP

18 Your peers are finding new technology innovations like virtualization and the cloud as a way to save money. Virtualization and cloud computing are a cost-effective means to move the contents of entire servers into one offsite virtual server or software bundle – this includes all applications, data, operating systems and patches. The need for fewer physical servers reduces hardware and energy costs, data size requirements and makes overall IT management and backup/recovery easier.

According to series of studies compiled by VMWare (a US-based cloud and virtualization software and services company), businesses that have implemented virtualization have reduced total cost of ownership in IT operations by up to 67%.

While there has been much attention called to the positives of these new innovations, SMBs owners and managers have little to no visibility to the new set of risks and the incremental costs that accompany this new technology.

This new technology, while highly productive, also has the potential to be disruptive given the increased risk for security breaches in the cloud and the learning curve of team members adapting to new technology and software applications. The life of a system administrator also becomes more complex given the demands of always-on employees/customers and the greater need to backup data and recover immediately in the event of an unplanned outage.

The reality is many of the headaches that come with new technology aren’t fully realized until months, if not years, into their implementation – and this may be too late.

 

Management today needs more visibility to the real risks at hand, along with new solutions and methodologies. Partnering with a managed services provider (MSP) is one new approach being used by many of your peers today. Experienced MSPs have access to newer tools that reduce costs by automating many routine in-house labor intensive processes. Break-fix is labor intensive, and labor is one of the most expensive operating costs within your IT infrastructure. These innovative tools generate real productivity increases and mitigate the risk of network failure, downtime or data loss from human error.

MSPs deliver a trusted foundation for your team and your customers – some of the services and tasks offered include:

  • Remote Desktop Management and Support
  • Predictable Management of Critical Patches and Software Updates
  • Fractional Resource Availability of Best-In-Class Expertise – scaled to your needs
  • Implementing and Testing Backup and Disaster Recovery Processes
  • Performance of Inventory and Audits of Computer/Network/Software
  • Enforcement of Network/Security Policy
  • Mobile Data Management and Monitoring
  • Monitoring of Network/Operating System and Alerts
  • Updating Anti-Virus Software and Detecting Spyware

Alert Monitoring – MSP automation of this task has led to an 80% reduction of in-house monitoring that delivers visibility to risks that were previously unidentifiable.

Service Tasks/Help Desk Requests or Ticketing – MSP automation of these tasks have led to a 30% reduction of in-house support ticket- related efforts – saving countless hours of paying for employees and team members to stand idle

Reporting – MSP service-level management tools and dynamic dashboards have led to complete automation of reporting and business communication efforts. Network trust increased and fear of unknown risks reduced so management can sleep at night?

 

Erase any misconception that MSPs are nothing more than “outsourced” tech help priced to displace your in-house IT technician or team. The new MSP has defined effective processes; methodologies and technology partnerships to offer valuable preventive services that proactively identify and eliminate threats before a bigger problem arises.

Whether an MSP assumes full responsibility for IT operations or acts as an ally to an in-house IT technician or team, the toolsets and education they provide to SMBs are invaluable. An MSP’s expertise and availability is what sets them apart from the “fireman-like” break-fix provider.

In an increasingly competitive environment where technology evolves at a rapid pace, businesses must fully leverage innovation to better meet the needs of their employees and the expectations of their customers. Much of this hinges on an organization’s ability to increase system reliability for their business continuity, team productivity and customer satisfaction.

CLICK HERE for a free network assessment, and choose Cognoscape as your trusted MSP.

The Technology Pains of Small Business

Small business owners are faced with quite the dilemma these days. While a reliable and secure network is a critical component to success, business owners are also being forced to scale back on costs and overhead as a means of basic survival in today’s economy.

Having a fully staffed IT department simply isn’t a viable option for a majority of small business owners. Many small businesses either have one full-time employee devoted to IT services or none at all. Both scenarios are recipes for disaster in an increasingly complex high-tech society.

One IT person, even a very small team, will likely be overworked and burdened by too many responsibilities. This can make a company’s business infrastructure increasingly vulnerable to breakdown, not from technology, but from human error.

13 A recent study conducted by Gartner projected that through 2015, people – not technology, will be responsible for up to 80% of technology failure. This number coincides with findings reported in the IT Process Institute’s Visible Ops Handbook stating that 80% of unexpected outages are due to poorly planned changes implemented by administrators and developers.

The forecast is even stormier for businesses with absolutely no IT support on payroll. These business owners have subscribed to the break/fix model of technology management. While this model can sometimes be out of necessity due to budget restraints, it can also stem from a state of ignorance or denial that their business is truly susceptible to technology failure. The overall health and profitability of their business is directly affected by the performance, reliability and security of its technology systems.

With the break/fix model, there is absolutely no proactive monitoring or management of their network. The only emergency plan for data loss or downtime is to call upon an IT specialist in an emergency 9-1-1 situation.

On average, these IT consultants charge $100 an hour. This doesn’t even factor in trip fees, surcharges, and standard repair costs in the range of $500 to $1000, or the costs of hardware and software upgrades. This method also results in more downtime, lost productivity, lost revenue, and a loss in overall customer satisfaction. Major network repairs require a minimum of 8-24 hours on average and most on-call IT consultants cannot get on site for up to 24-48 hours.

One has to also wonder if these consultants truly have the business owners’ best interest in mind. After all, they make their money when technology breaks down. Are they truly motivated to keep a client’s network running optimally and efficiently?

Well Cognocape is. CLICK HERE for a free network assessment.

Common Causes of Downtime

Chart Zero In On Infrastructure Vulnerability to Data Center Downtime

Leading Causes of Downtime

  • Power Outages – 48%
  • Accidental Data Deletion – 31%
  • Employee Created – 29%
  • Virus/Malware – 25%
  • Application Failure – 20%

Power Related Outages – Vulnerabilities to a data center’s power still rank as one of the leading causes of unplanned network outages and can often be catastrophic. Particularly costly are UPS (Uninterrupted Power Supply) related failures (this includes batteries) and generator failures.

ZERO IN

To minimize the impact that power outages have on data center operations, and to prevent a potentially catastrophic unavailability of the data center, a dependable backup system is needed. This ensures the backup of critical data and applications is always in place in the event of equipment failure.

The integration of comprehensive infrastructure monitoring and management tools also minimizes the costs associated with identifying and repairing power system failures. Accidental Data Deletion and

Employee Created Downtime

Simple human error is a prevalent cause of downtime. Whether months of data is unintentionally lost in a backup error, a power cord is unplugged, a busy IT technician overlooks routine maintenance and alert monitoring, or there is an error in judgment during an emergency, to err is human and apparently quite frequent as well.

A study by the Gartner Group, an IT research and advisory firm, projected that through 2015, 80% of downtime will be due to people and process issues.

In the fall of 2010, foursquare – a widely used mobile check-in app – had a highly publicized outage of eleven hours, followed by another shorter service disruption the next day. All three million users of the app were affected and it was a chain of human mistakes that led to both outages. IT techs noticed that a server was storing too much data, but as the support team tried to resolve the issue, all the servers went down.

9 ZERO IN

Regardless of proper training, or the quality of IT technician hires, human mistakes will likely always lead to instances of a downed data center or network, especially considering the expected learning curve of adapting to new technologies. Ensuring proper communication amongst team members and adequate training at all levels is critical. Of course, it goes without saying that having a comprehensive backup strategy is also a necessity to counteract downtime and ensure business continuity regardless of who is having a bad day.

 

Virus/Malware/Hacks – SMBs are often guilty of thinking they are immune to hackers, viruses and malware. According to a National Cyber Alliance and Symantec survey, 77% of SMBs don’t believe they’re at risk for cybercrime while 83% admit to having no formal measures in place to counter these threats. This isn’t merely a threat to your data; it puts your bank account and the sensitive data of your customers at risk.

ZERO IN

Passwords should be regularly changed every few months. They should also be strong. This means no more passwords like “password” or “1234567.” Employees must be educated on security and precautionary measures. And there is no excuse for not having data backed up in this era of cloud computing and virtualization – where the entire contents of physical server – including the operating system, applications, patches and all data – can easily and cost-effectively be grouped into one software bundle or virtual server.

 

Application Failure – Many applications or their components contribute to recurring downtime. While virtualization offers many multi-faceted advantages it has also further exacerbated overlapping applications in the infrastructure. One small application component failure is now likely to impact many applications.

ZERO IN

It is critical that all components are profiled and there is a general understanding as to what each application does – the hardware resources used by the application and the software it integrates with. Identifying an owner will allow for better monitoring and recognition of failure points.

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SMBs can benefit from a little help when it comes to properly implementing and leveraging this new technology to strengthen their disaster recovery efforts. Access to a 24/7 NOC (Network Operations Center) team offering remote monitoring and management solutions, along with a 24/7 help desk, can help SMBs improve backup, monitoring and troubleshooting processes for maximum uptime and business continuity.

CLICK HERE for a free network assessment.

 

Can Your Business Afford Downtime?

Calculate the True Cost of Downtime

According to the Aberdeen Group, a business intelligence research firm, downtime is costing companies 65% more per hour these days than just two years ago. 2012 data calculated downtime costs at the $165,000 mark compared to the $100,000 of 2010.

According to Symantec’s 2011 SMB Disaster Preparedness Survey, small businesses lose an average of $3,000 each day from owned systems and networks. Medium sized businesses bleed even more money, losing an average of $23,000 each day. 8

C-Suite management at SMBs must consider both the direct and indirect costs of downtime. Direct costs are:

  • Wasted wages paid to idle employees
  • Sales lost during the outages
  • The expensive emergency service/repair bill issued by the on-call IT technician brought in to get your business back up and running.

Indirect costs, such as lost customers who have moved on after one too many “Our server is down” messages, are more difficult to quantify but more costly – equating to roughly 62% of all network downtime costs. A specific dollar amount cannot be placed on lost productivity, the long-term consequences of damaged reputation and wasted opportunities that accompany each downtime event.

This is why Chief Information Officers (CIOs) and IT support alike don’t have the visibility or insight to understand what the average downtime event truly costs them. The residual effects of a network outage are typically much more costly than costs related to identifying the root cause of the failure and repairing or replacing any physical hardware.

But so many C-level executives remain mindful of only what downtime costs them in terms of repair or replacement costs. They also tend to gloss over the fact that their day-to-day business processes are more susceptible to outages and inaccessible data than they think.

CLICK HERE for a free network assessment.

Five Ways SMBs Can Minimize Data Loss

  1. Enforce Data Security – This is more or less the managing of the “human factor.” CIOs and those in SMB management roles must communicate data protection policies to staff and ensure their implementation. Rules must be set, particularly with personal devices, to enforce security policies. It can be as simple as sending reminders to not open email attachments from unknown sources, requiring passwords be reset every few months or the banning of specific file sharing or social networking sites. In May of 2012, security concerns led to over 400,000 IBM employees being banned from using the cloud storage service Dropbox and Siri – the iPhone personal assistant. While far from an SMB, if IBM can go that far and make such a demand to so many employees, an insurance agent can certainly remind his or her marketing representative to not play Farmville on Facebook if they’re using a laptop containing company and customer/client data.
  2. Stress the consequences – both personal and business – of not properly protecting confidential data. Encourage employees to make passwords difficult to crack. Patch holes in the infrastructure’s walls by identifying the most critical data. Perhaps a trusted IT advisor can help implement processes to better protect that data’s security perimeters.
  3. Mobile Device Management – Mobile Device Management grants SMBs a semblance of control over the mobile devices used within the company. Devices tapping into company system are identified and remotely monitored and managed 24/7. More importantly, they are proactively secured via specified password policies, encryption settings, and automated compliance actions. Lost or stolen devices can be located and either locked or stripped of all SMB-related data.
  4. Snapshots – Fully backing up large amounts of data can be a lengthy process. The data being backed up is also vulnerable to file corruption from read errors. This means sizeable chunks of data may not be stored in the backup and be unavailable in the event of a full restore. This can be avoided by backing up critical data as snapshots, which are read-only copies of data frozen to a specific point in time and stored using minimal disk space. These virtual snapshots are immediately available for restores in the event of data loss.
  5. Cloud Replication and Disaster Recovery Services – The cloud provides SMBs who consider data backup to be too costly, time consuming and complex with a cost-effective, automated off-site data replication process that provides continuous availability to business-critical data and applications. Cloud replication can often get systems back online in under an hour following a data loss.

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CLICK HERE for a free network assessment.

Data Security Threats Every SMB Must Be Aware of

Human Error and Employee Negligence

1 Human error, by way of unintentional data deletion, modification, and overwrites, has become much more prevalent in recent years. Much of this is the result of carelessly managed virtualization technology. Virtualization and cloud computing have enabled improved business continuity by allowing entire servers – including all data, operating systems, applications, and patches to be grouped into one software bundle or virtual server and subsequently backed up. The catch is humans must still instruct this technology how to perform, which is why so much of today’s data loss is linked to human error. The complexity of these systems often presents a learning curve that involves quite a bit of trial by error. For example, a support engineer can accidentally overwrite his backup when he forgets to power off his replication software prior to formatting volumes on the primary site.

While most CIOs at SMBs are generally accepting and understanding that mistakes happen, they must be more stringent when it comes to managing risky negligent employee behaviors in this era of mobility and accessibility. Employee negligence puts a company or organization’s critical business data at risk of being stolen by cybercriminals or malicious employees. Examples of this negligent behavior include:

  • Leaving computer systems unattended
  • Weak passwords (“password” or “12345”) or passwords that aren’t frequently changed
  • Opening email attachments or clicking hyperlinks embedded with spam
  • Visiting restricted websites

5 Employee Mobility & Data Exposure

In the modern-day BYOD workplace, more people are doing daily business on their personal laptops, iPads and Blackberrys. They are also carrying around portable media like thumb drives, USB sticks and CDs.

These devices are not always backed up or secured by IT administrators. There is not only the potential for these devices to be lost or stolen but there is also a very high probability that employees using them are also accessing personal email, downloading music, browsing the web, playing games and hanging out on Facebook. This makes sensitive data susceptible to malware, viruses and hackers. All of this substantially ups the likelihood of data loss incidents.

Prevent data loss. CLICK HERE for a free network assessment.

Decreasing Business Costs and Risks of Costly Data Loss

4 We live in a 24/7 global economy that is more dependent than ever on technology. Even the technology of small and medium sized businesses (SMBs) houses sensitive digital data – employee and customer information, internal emails, documents and financial records, sales orders and transaction histories. Not to mention applications and programs critical to daily business function and services. Employees at SMBs require continuous access to the critical business data needed to meet the demands of the customers or clients they service. They even want this access while they’re at home or on the go running errands. To satisfy this demand, many companies and organizations now allow employees to BYOD (Bring-Your-Own-Device) and “do business” using their personal laptops, tablets and mobile phones. The web, Wi-Fi networks and mobile devices with robust memory and battery life have made this constant access to a SMBs back office infrastructure a reality. Regrettably this flexibility and freedom is accompanied by an ominous risk of data loss.

Just a single data loss or breach can be costly to SMBs. Data losses and leaks come with lingering continuous costs that many SMBs cannot easily shake or overcome. Revenue is lost if employee productivity and customer accessibility/service are stalled by data loss. The expenses associated with internal research and investigation, system repair and maintenance, and data security protection are another heavy price SMBs must pay. If cybercrime is involved, affected customers must be notified, the potential exists for litigation, and many customers will likely never return due to mistrust.

While corporate-level data losses are well publicized, many SMBs mistakenly believe their data isn’t at risk. This mistake can prove to be a costly one.

3 Why C-Suite Management at SMBs Can No Longer Ignore Data Loss

  • Following a significant data loss, it is estimated that SMBs can lose up to 25% in daily revenue by the end of the first week.
  • According to the National Archives & Records Administration in Washington, 93% of companies that have experienced data loss, and prolonged downtime for ten or more days have filed for bankruptcy within twelve months of the incident. 50% wasted no time and filed for bankruptcy immediately. 43% of companies with no data recovery and business continuity plan actually go out of business following a major data loss. How quickly can your business be restored if critical data is lost? When was the last time backup processes were tested to ensure all data is recoverable and business operations are quickly restored?
  • A survey conducted by Symantec SMB revealed that fewer than half of SMBs surveyed backup their data each week. Only 23% of those surveyed said they backup data every day and have a business continuity plan in place.
  • The percentage of cybercriminal attacks targeting businesses with fewer than 250 employees doubled in 2012. The vulnerabilities of naïve small business owners have been noted, and hackers have now placed the proverbial bull’s-eye on these perceived weak links.

If sensitive customer data is leaked, SMBs may face overwhelming financial liabilities, which could include reimbursing affected customers and legal fees.

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Businesses today are playing on a much bigger playing field than they were two decades ago. Any SMB that trusts the security and backup of critical business data with a limited and overburdened in-house IT team, or forsakes internal IT support altogether for emergency on-call help when things go bad (Break/Fix Mentality), is playing with fire and begging to be burned.

Any disruptive or invasive technological event – even the smallest of incidents – can have an amplified impact on day-to-day business and profitability. Being proactive with data recovery solutions, and having emergency response procedures in place prior to a disruption or data disaster, is the only way to get critical data restored immediately to the data center, minimize downtime, protect customer and client data and soften the impact of such events.

Don’t let this happen to you. CLICK HERE for a free network assessment.