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Data Loss Can Cause You To Shut Down

52Small and medium sized businesses today are relying more than ever on IT systems to efficiently run their business, support customers and optimize productivity. These systems house sensitive digital data ranging from employee and customer information, to internal emails, documents and financial records, sales orders and transaction histories. This is in addition to applications and programs critical to daily business functions and customer service.

While corporate-level data losses and insider theft are well publicized, many smaller businesses have also become casualties of data loss and theft. Following a significant data loss, it is estimated that a small-to-medium sized business can lose up to 25% in daily revenue by the end of the first week. Projected lost daily revenue increases to 40% one month into a major data loss.

According to The National Archives & Records Administration in Washington, 93% of companies that have experienced data loss, coupled with prolonged downtime for ten or more days, have filed for bankruptcy within twelve months of the incident while 50% wasted no time and filed for bankruptcy immediately. Finally, 43% of companies with no data recovery and business continuity plan actually go out of business following a major data loss.

Still, 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.

Businesses play on a much bigger playing field than they did two decades ago. Any disruptive 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 minimize downtime and soften the impact of such events. CLICK HERE for a free network assessment.

Is That a Business Continuity Plan in Your Pocket or a Bunch of Jargon?

67Technology is full of difficult jargon. To further complicate things, certain terms are often used in a different context between one publication or service provider and the next. An example of this is the usage of backup, disaster recovery, and business continuity. These terms are commonly used interchangeably, often resulting in confusion. In an effort to alleviate some of this confusion, let’s describe each physical process. You will see an overlay among all three, although they are each different processes.

Backup – In IT lingo, the most basic description of backup is the act of copying data, as in files or programs, from its original location to another. The purpose of this is to ensure that the original files or programs are retrievable in the event of any accidental deletion, hardware or software failure, or any other type of tampering, corruption and theft.

It’s important to remember that the term “backup” refers to data only and doesn’t apply to the physical machines, devices, or systems themselves. If there were a system failure, disk crash, or an onsite physical disaster, all systems would still have to be replaced, rebuilt, and properly configured before the backed-up data could be loaded onto them.

Disaster Recovery – Backups are a single, albeit crucial, component of any disaster recovery plan. Disaster recovery refers to the complete recovery of your physical systems, applications, and data in the event of a physical disaster like a fire; hurricane or tornado; flood; earthquake; act of terror or theft.

A disaster recovery plan uses pre-determined parameters to define an acceptable recovery period. From there, the most satisfactory recovery point is chosen to get your business up and running with minimal data loss and interruption.

Business Continuity – Although backup and disaster recovery processes make sure that a business can recover its systems and data within a reasonable time, there is still the chance of downtime from a few hours to many days. The point of a business continuity plan is to give businesses continuous access to their technology and data, no matter what. Zero or minimal downtime is the goal.

Critical business data can be backed up with configurable snapshots that are instantly virtualized. This allows files, folders and data to be turned on and restored in seconds. Bare metal restores of hardware, where an image of one machine is overlaid onto a different machine, is also utilized along with cloud replication for instant off-site virtualization.

Many businesses also keep redundant systems and storage at a different physical location than their main site as part of their business continuity process. They may also outline procedures for staff to work remotely off-site. Some businesses or organizations may go as far as to have printed contact lists and other critical data stored off-site to keep their business moving if a disaster wipes out power and their ability to access anything electronically.

This should clarify the differences between backup, disaster recovery, and business continuity solutions. Choosing what works best for your business will come down to your current IT infrastructure, your budget and how much downtime you can reasonably accept.

CLICK HERE for a free network assessment.

Keep Your IT Guy and Outsource IT Services Too

59Everyone in the office loves Eric. Sporting a different ironic t-shirt everyday, Eric is the one we call when technology spits in our face. Whether it’s a slow system, a bug that needs to be squashed, a website issue, or a crash that results in unexpected downtime and data loss, Eric is right there. Not only does he get to the bottom of any issue but he also rights the ship like he’s some sort of miracle-working captain who just happens to have a pretty wickedly funny Peter Griffin from Family Guy impersonation.

But business is growing and Eric is overworked. Eric has certain skills that you’d love to use to develop innovative applications and revenue-generating projects– but he’s too busy running around fixing things that break. Or he’s performing the most mundane and routine tasks day-in-and-day-out just to keep things secure and running smoothly.

You get a sense that Eric’s overburdened and he’s saddled with too many responsibilities. His demeanor has changed from pleasant to moody. He’s listening to angrier metal and punk music and you’re noticing cracks in his work. You fear Eric is being pulled in too many directions and the reliability of your server, network, and applications, as well as the integrity of your data, are all at risk.

Someone who has watched a bit too much of Donald Trump on The Apprentice might think Eric should be fired. We’re not going to fire Eric. But we’re also not going to hire a full-time salaried Robin to his Batman or Cheech to his Chong. We’re going to help Eric by exploiting IT automation and managed services to handle many of the monotonous tasks making Eric hate his job right now.

Let’s help Eric…..

  • Focus Primarily on Cost-Cutting and Revenue Increasing Projects: First things first, Eric has to realize that he can’t do everything himself. Where are his skills best used? Whether it’s processes that help drive down costs or ones with the potential to raise revenue, evaluate the projects in the queue and rank them by what impacts the bottom line the most. Once that’s done, look at the day-to-day processes designed to keep things running securely and efficiently. What can be off-loaded from Eric? Determine which of those tasks can be automated either through the cloud or managed services.
  • Take to the Cloud: Some IT people fear the cloud spells the end to their job security. Meanwhile, the cloud can actually help them take on a more prominent contributing role in the company’s success. The cloud should be seen as another tool that further eliminates the mundane yet necessary daily drudgery from their workday. Those who work WITH the cloud will find that they have more available time to take on more meaningful cost cutting or revenue generating projects.

Use a Managed Service Provider: Using outsourced managed services not only alleviates much of Eric’s pressure and stress, but also boosts productivity and gives the company a much improved ROI (Return-on-Investment) on their technology investment. While technology has gotten easier for the end user, it has become more complex on the backend with the advent of virtualization, cloud computing, and advanced infrastructure. Using an MSP gives Eric access to a trusted advisor, a 24/7 help desk, remote monitoring and management tools, mobile device management tools, and much better disaster recovery and business continuity solutions. All without the overhead that comes with hiring more help for Eric. MSPs offer a consistency to not just your end-user but also your main IT guy who will certainly appreciate the help.

CLICK HERE for a network assessment.

4 Steps To Improve SMB Data And Network Security

 TO STAY SECURE – A GOOD DEFENSE IS THE BEST OFFENSE

SMBs must understand that the time has come to get serious with their security. Sadly, many small businesses have a false sense of security. In the McAfee/ Office Depot joint survey of 1000 SMBs, over 66% were confident in the security of their data and devices despite admitting to obvious flaws.

Cybercrime is only one cause of compromised data. There are 3 primary causes of breached security at businesses according to the June 2013 Symantec Global Cost of a Data Breach study. Only 37% are attributed to malicious attacks. The remaining 64% are human error and technology errors.56

Data breaches aren’t always about bad people doing bad things. Many are the result of good employees making mistakes or of technology failure. SMBs don’t necessarily need a large budget or dozens of employees to adequately protect sensitive data. A secure environment is possible even on a SMBs budget. Here are a few steps to improving data and network security.

STEP 1

KNOW ALL DEVICES CONNECTING TO YOUR NETWORK

Keep a frequently updated list of every device that connects to your network. This inventory is especially important given today’s BYOD (Bring-Your-Own-Device) workplace where employees can access your network through several different devices. Knowing what these devices are and ensuring they’re all configured properly will optimize network security.

All it takes is a regularly scheduled review to add or remove any devices and affirm that every endpoint is secure. Much of thisprocess can be inexpensively automated through a Mobile Device Monitoring (MDM) tool. A MDM tool will approve or quarantine any new device accessing the network, enforce encryption settings if sensitive information is stored on such a device, and remotely locate, lock, and wipe company data from lost or stolen devices.

STEP 2

EDUCATE & TRAIN EMPLOYEES

57Every employee should participate in regular general awareness security training. This will not only reduce security breaches directly tied to employee error or negligence but also train employees to be on the defense against cybercrime. Employees are critical to your security success and the prevention of data breaches. Hackers commonly break into networks by taking advantage of unknowing employees. Phishing attacks – legitimate looking emails specifically crafted to mislead recipients into clicking a malicious link where they’re asked to provide their username and password – are still successfully used by hackers to capture login credentials.

If a large company makes the news for a data breach tied to an infected email, be sure to share that news with employees with a warning. Come up with fun ways to teach employees how to identify spear-phishing email attempts and better secure their systems and devices.

It is also important to have a security policy written for employees that clearly identifies the best practices for internal and remote workers. For example, password security is critical and passwords should be frequently updated to a combination of numbers, lower case letters and special characters that cannot be easily guessed. Security policy training should be integrated into any new employee orientation. This policy should be updated periodically. More important than anything, this security policy must be enforced to be effective.

STEP 3

PERFORM AN AUDIT OF SENSITIVE BUSINESS INFORMATION

If you want to keep your most sensitive business information secure, it’s important to know exactly where it’s stored. A detailed quarterly audit is recommended.

STEP 4

USE CLOUD AND MANAGED SERVICE PROVIDERS

Overall, the cloud is likely a more secure data solution for small business. Any conception that the cloud isn’t safe is outdated. Most of 2013’s security breaches were the result of lost or stolen devices, printed documents falling into the wrong hands, and employee errors leading to unintended disclosures. It’s fair to speculate that many of these breaches wouldn’t have occurred had this information been stored in the cloud rather than computers, laptops, and vulnerable servers.

SMBs with limited budgets are actually enhancing their security by moving to the cloud. Since there is no way a SMB can match a large enterprise’s internal services, moving services like emails, backups, and collaborative file sharing to the cloud not only reduces total-cost-of-ownership, but gives access to top-level security to better defend against internal and external threats.

Meanwhile, a Managed Service Provider (MSP) can assume responsibility for security measures like the administering of complex security devices, technical controls like firewalls, patching, antivirus software updates, intrusion-detection and log analysis systems.

MSPs are also capable of generating a branded risk report for any potential client or business partner reviewing your security measures. This third party manual assessment of your network security can instill confidence in prospective business partners by proving to them that any possible security risks or vulnerabilities will be properly managed and addressed.

CLICK HERE for a free network assessment.

6 Steps to Better Data Backup Practices

  1. Think Quicker Recovery Time, Not Quicker Backup – While incremental backups are much faster than executing a full-backup, they also prolong recovery time. In the event of data loss, a full restore will require loading the most recent full backup and then each incremental backup tape. Having too many incremental backup tapes not only adds time to this restoration process, but it also increases the probability of not recovering all of your data. A tape could be lost, unintentionally skipped over, or contain corrupted data. Be sure to focus on optimizing the restore time to ensure faster data recovery. A quicker recovery time should be the main objective, not the need for a quicker backup process.

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  1. Maintain Sufficient Backup History – Within the blink of an eye, current data files can become corrupted and inaccessible. This will necessitate the loading of an earlier data backup that is clean of corruption. Many smaller companies make the mistake of failing to keep a sufficient backup history.
  1. Be Sure to Backup Essential Data AND Applications – Some businesses don’t feel the need to backup all data, but be sure essential databases, documents and records are backed up frequently. Don’t overlook applications that are critical to day-to-day business operations either. Many companies fail to backup applications, only to realize when it’s too late that they don’t have access to the original installation disks when they’re trying to recover from data loss or an outage.
  1. Have Off-Site or Online Backup – Some businesses backup data simply by moving essential files to tapes or external hard drives that are then stored somewhere onsite. But if they’re kept onsite, what happens if a fire, flood or other natural disaster takes out not just your server but your backup tapes and drives? Onsite backups can also be susceptible to theft. Having secure off-site, or even online backup, is simply the smart thing to do to ensure quick recovery when trouble comes to town.
  1. Fix Broken Access Controls on Your File Server – Many businesses have folders with confidential data residing on a file server with overly permissive access controls. Why take the risk of having a disgruntled – even former – employee access and misuse this data when access can be limited to only those in the company who need it?
  1. Be Sure to Test Restores – It happens time and time again. Business owners think they have a data backup plan in place. Tapes are changed diligently each day and everything appears to be backed up and good to go. However, it turns out the backups haven’t been working for months, sometimes even years, right at the very moment they’re needed. Either the backups had become corrupt and useless, or large segments of data were not being backed up. This happens often. Don’t let it happen to you.

Avoid data loss before it happens. CLICK HERE for a free network assessment.

How Much Does Downtime Really Cost?

50Many SMB owners think IT downtime only costs them a few productive hours, but there’s a lot more at stake when your systems go down. Customer satisfaction and loss of brand integrity are just two of the key losses apart from the more evident costs such as lost productivity and a temporary dip in sales.

Here’s a few other ways downtime can hurt your business:

1. Customer Loss – Today’s buyer lacks patience; They are used to getting everything at the click of a mouse, at the tap of a finger. Suppose they are looking for the kind of products/services that you offer and your site doesn’t load or is unavailable—even if temporarily– you are likely to lose them to a competitor—permanently.

2. Damage to Brand Reputation – Customers are now using Social media platforms like Facebook and Twitter and blogs to vent their bad brand experiences. Imagine an irate customer who doesn’t know if their card was charged on your site, or not, due to a server error. If it’s your bad day, they could probably be using Facebook or Twitter to share their bad experience, and it could be viewed by hundreds of people, causing irreparable harm to your brand image.

3. Loss of Productivity – When your systems don’t work, this can have a direct impact on your employees’ productivity. Consider a research firm of 200 employees where they primarily rely on internet connectivity to access the knowledge base. If the server hosting the knowledge base is down, there’s a total loss of at least 1600 work hours for one day.

4. Overtime, Repair and Recovery, Compensatory costs – In the above case, imagine the overtime wages the business would have to incur if they were to make up for the work loss they faced owing to downtime. In addition, there’s always the cost of repair—the money the business would have to shell out to fix the issue that caused the downtime and get the server up and running again. In some cases, businesses would have to incur additional costs to make customers happy. These could include giving away the product for free or at a discount, or using priority shipping to make up for a delayed order.

5. Possible Lawsuits – Businesses could also be at the receiving end of lawsuits. For example, a downtime that has an impact on production, delivery or finances of the customer could invite litigation.

6. Marketing Efforts Rendered Useless – Consider a pay-per-click advertisement that shows up for the right keywords on Google, or an extensive e-mail campaign that your business engages in. However, when the prospect clicks on the link, all they see is an error message – Isn’t that a waste of your marketing budget?

The bottom line—one natural disaster, one technical snag or just one power outage has the power to put you out of business – both virtually and in reality. It’s probably time to think about how you can mitigate the threat of a possible downtime and whether your MSP can act as an effective and efficient ally in this battle for you.

Don’t let downtime cost you your business. CLICK HERE for a free network assessment.

5 Reasons Why You Should Get On The Cloud

45A recent article by The Guardian (UK) states that the cloud industry is set to see a growth of around 30% soon. But many small and medium business owners are still struggling to make sense of the cloud and how it can benefit them. If you are one of them, then here’s what’s in store for you when you migrate to the cloud:

1. Connectivity – Being on the cloud gives you unparalleled connectivity to your data—from anywhere and at any time. All you need is a device that can connect you to the web and you are set!

2. Save On Hardware Costs – Using the cloud for certain programs spares you the cost of investing in specific hardware. Even devices as simple as your smartphone or a tablet can help you access those applications so you don’t have to spend money on dedicated hardware. Studies have shown that cloud users end up enjoying as much as a 17% IT cost reduction compared to their non-cloud counterparts.

3. Cloud Enables SAAS – The cloud allows you to use software as a service. Microsoft 365 is one such example. When you use software as a service, you enjoy certain benefits such as more regular updates at a lower cost and the ability to have anyone work on the program for you by sharing the access credentials with them.

4. More Efficient Use of IT Staff – Moving to a cloud-based environment puts the burden of maintenance and downtime reduction on your service provider. That means you can use your limited IT staff more efficiently and also don’t have to worry about the costs associated with such maintenance or downtime.

5. Improved Productivity – Studies have shown that cloud users enjoy better productivity than their non-cloud counterparts. This could be because cloud service providers are better equipped to handle any IT eventualities than the average SMBs.

So, perhaps it’s time to ‘get cloudy’ and enjoy all that the cloud has to offer your SMB. And…if you need help in doing that, CLICK HERE.

What You Can Learn From U.S. Regulator’s Business Continuity & Disaster Recovery Recommendations

U.S regulators have recommended that all fu40tures and securities firms review and update their current data backup, disaster recovery, and business continuity solutions. Prompted by closures in the equities and options market in the aftermath of Hurricane Sandy, Regulators including the SEC, FINRA, and the CFTC contacted firms to assess the impact Hurricane Sandy had on their operations The regulators asked each firm for specifics regarding any backup disaster recovery (BDR) and business continuity plan (BCP) they had in place prior to Hurricane Sandy. The responses they gathered were compiled to develop a list of best practices and lessons learned. The regulators have since gone on to suggest that all firms refer to these best practices and lessons as part of reviewing and improving upon their current BDR and BCP procedures. By doing this, the regulators hope that firms will be better prepared for similar events. Regulators feel that a comprehensive BDR and business continuity strategy will help firms improve responsiveness and minimize downtime. Managed Service Providers (MSPs) have always stressed the importance of the BDR and BCP solutions they offer to small-to-medium-sized businesses. That said, it doesn’t hurt to see what government regulators recommend to those handling our money. We’ve summarized portions of the full report, addressing only the parts that we feel can easily be applied to SMBs. The full report can be read here at http://www.sec.gov/about/offices/ocie/jointobservations- bcps08072013.pdf.

Widespread Disruption Considerations

True business continuity plans go beyond technology. What is the probability of a widespread lack of telecommunications during a disaster? We’re talking no Internet and no cell phone coverage. Large-scale events can knock out power and limit our access to drinkable water and food supplies. Getting around may be complicated. Roadways might be inaccessible and fuel may be scarce. Part of being prepared for the unknown is to assess how any plausible scenario would impact day-to-day operations and services. A critical component to business continuity planning is remote access. Every employee should have the ability to efficiently work from home if a disaster strikes or blocks access to the office. If there is no power or no Internet and phone, alternatives should be defined to carry out key operations.

Alternative Location Considerations

The implications of region-wide disruptions must be factored into the location choices for backed-up data centers. Keeping backups within close proximity may seem like a smart strategy to ensure they’re readily accessible, but this does you no good if it’s a region wide disruption. When it comes to supporting business critical activities at an alternative location, what will be the site’s staffing needs? How about office space, equipment, and available resources? Printed copies of the business continuity plan, contact lists, and other business documents and manuals should also be kept at the alternate site if electronic files can’t be accessed.

Vendor Relationships

Any critical vendor relationships should also have an adequate business continuity plan, as they may be affected by the same event as you. Vendors risk ratings should be considered based on the quality of their BDR and BCP strategies.

Telecommunications Services and Technology Considerations

The telecommunications infrastructure must be enhanced. Consider secondary phone lines, backup mobile phone services with different carriers, emergency Wi-Fi spots, and cloud technology.

Review and Testing

Annual full BCP tests should be conducted. If the business continuity plan changes often, more frequent testing is recommended. All personnel should be trained for their specific role in the plan.

CLICK HERE for a free network assessment.

3 Steps to Improved BC/DR Planning

33Step 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

31As 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.