IT Maturity

Data Loss Causes Companies to Hemorrhage $1.7 Trillion Per Year: Report

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During the last two years, companies have lost 400 percent more data. This loss of data and downtime cost businesses over $1.7 trillion dollars, according to the EMC Global Data Protection Index released Tuesday. This loss could be prevented with better IT strategies. At this point, most companies are poorly prepared to deal with data protection.

The survey of over 3,300 respondents from 24 countries made an important distinction between leaders (over 76 points), adopters (51-75), evaluators (26-50) and laggards (25 and lower) creating an IT maturity score. Points were awarded based on shorter recovery times, confidence in backup infrastructure, modern backup systems and off-site replication.

Most of the companies had data disruption in the last year, with IT companies leading the way at 67 percent. Not surprisingly, adopters and leaders suffered less data loss. Laggards suffered more at a rate of 37 percent.

About 71 percent of the IT professionals surveyed said they weren’t completely confident in their ability to recover data after an incident. This is consistent with the IT maturity scores awarded for each company. Only 2.4 percent of companies scored as leaders and 11.3 percent as adopters leaving the vast majority of companies in the evaluator and laggard categories.

Just 6 percent had a strategy in place for the growing categories of big data, hybrid cloud and mobile. Lack of preparedness seems to be the case whether it’s data backup or security strategies. A recent IDC study found that 60 percent of Canadian business don’t have a security strategy for mobile or cloud. With cloud application use up 35 percent it’s important for companies to have recovery strategies in place for all IT categories.

“This research highlights the enormous monetary impact of unplanned downtime and data loss to businesses everywhere. With 62% 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 Guy Churchward, President, EMC Core Technologies. “We hope the global data protection index will prompt IT leaders to pause and reevaluate whether their current data protection solutions are in alignment with today’s business requirements as well as their long term goals.”

Countries that had the highest scores on the IT maturity scale were China, Hong Kong, Indonesia, Singapore the Netherlands and the US. The US spends the most on data protection with an average of 32 million a year nearly 9 percent of the IT budget.

Most companies have more than one data protection vendor which may be good news for service providers but bad news for the companies. Data loss was more prevalent when using multiple vendors. When using only one the data loss rate was 24 percent, when using 3 or more that number jumped to 38 percent. Downtime also increased with multiple vendors.

Service providers who take the time to find out whether customers are using other vendors and offer a comprehensive data protection strategy could use this research to their advantage.

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