New England saw its first snowfall of the season in mid-October this year and many locals cringed at the site. The memory of last winter’s record-breaking snowfall is still all too fresh and some companies are still feeling the remnants of the monetary loss.
On average, state-wide shutdowns due to extreme snow can cost an estimated $250 million per day, according to the Massachusetts Emergency Management Agency. Intense snowfall in Massachusetts began in early February and broke records by the end of March.
The MEMA report cited a total of 270 building collapses at the peak of the snow. Out of the 270, 138 were non-residential structures including private businesses, schools and government buildings.
All of these buildings faced serious potential for data loss due to this natural disaster. While the report cites no estimate on the data loss faced by local businesses, the potential monetary value lost to the snowfall could be monstrous.
The cost of data loss
According to a recent study by a cloud services provider, in 2014 companies or organizations consisting of over 250 people lost a combined $1.7 trillion in data loss.This shows a decrease in data loss from the past, but the study also pointed out that in 2013 and 2014 the sheer volume of data loss increased by 400 percent. Other notable statistics include:
- Of the surveyed companies, 64 percent were affected by data loss in 2014.
- Organizations without a disaster recovery plan rang in at 51 percent.
- Only 6 percent have a system in place for disaster recovery on the cloud or mobile.
- Disruptions due to lost data amounted to a loss of revenue for 36 percent of companies.
- Delays in product development were also cited as a consequence for 34 percent of companies.
Perhaps the most daunting statistic of all was that 71 percent of IT professionals admitted they were not confident when it came to their ability to recover information after a data loss incident.
“This research highlights the enormous monetary impact of unplanned downtime and data loss to businesses everywhere. With 62 percent of IT decision-makers interviewed feeling challenged to protect hybrid cloud, big data and mobile, it’s understandable that almost all of them lack the confidence that data protection will be able to meet future business challenges,” said a spokesperson for the cloud services provider.
“These are easy preventive measures that can fend off significant financial loss down the road.”
An absence of an overall disaster recovery plan combined with both the monetary risk associated with data loss and a lack of professional confidence from IT staffers urgently highlights why companies need to seriously consider the value in investing in both online backup and data protection services
Online backup services that offer backup in remote off-site locations with easy computer access can help companies avoid some of the costs associated with data loss, especially in times of natural disasters. It is crucial for leaders to work together with service providers to create a comprehensive disaster recovery plan that works in tandem with their new backup system. These are easy preventive measures that any company can take to fend off significant financial loss down the road.