Why Data Loss Is Costly for Business Operations

Posted by
Oct 04, 2019
Reviewed by
Mar 18, 2024
min. read
Table of Contents

A recent study by Logically found that 60% of business decision-makers would rather lose half of their companies’ revenue growth for the next year than lose half of the company data. While it may seem that a company without money would cease to survive, in the age of digital operations, losing data could end up costing them more than just a revenue stream.

Types of Company Data Storage

To succeed as a business in today’s world, data is used to market a company’s products and services, communicate with customers, and store internal records. Businesses worldwide have experienced data breaches, device theft, and failed backup systems.

When their means of data storage fails on them for any number of reasons, it doesn’t only slow production down, but it could potentially force your business to close. That’s why they need a trusted data storage system for their sensitive information. Some of the common storage methods for businesses are:

  • Cloud storage–internet-based storage offers convenience and gives companies control over access. Though there have been mistakes made involving URL classification.
  • Colocation–storing data on equipment off-premises to maintain control but have a data center meet cooling and power needs for the system.
  • Data Management Firms–a company that offers different services such as digital record management.
  • Network Attached Storage (NAS)–file storage that allows multiple users with an array of devices to access data from a central device using ethernet cables or other connections.

The Price of Improper Storage

Having an ineffective or improper data backup system may not seem like an issue for business until an unauthorized person or hacker access the files. While many times data leaks result in information being sold on the dark web, the intent of a hacker can vary. The company VFEmail suffered data loss due to lack of security, losing all of their sensitive data on the servers over a span of 18 years.

A study by the Ponemon Institute found that downtime caused by data loss affects a business’ operations. One hour of downtime costs a small company $8,000, a medium company $74,000 and a large corporation up to $700,000. As the hours continue, these numbers only rise, whether your system was infiltrated by a hacker, or the media itself lost all of your files.

Recovering from Data Loss

Not only are profits lost after a business’ storage fails, but their reputation is damaged, and in some cases, there may be fines to pay. A company’s digital information gives them insight into how they should proceed in the future to communicate with customers. Unfortunately, less than half of business decision makers at large companies reported that at least 25% of their strategic plan was focused on IT.

Small businesses who think they aren’t a target, remote workers using personal devices, and lack of security on existing systems are only some of the data loss dangers for businesses. No matter how large or small your business is, you need a proper data storage plan. The need for convenient and reliable storage increases as data breaches and data loss situations are shown in the news.

Secure Storage for Businesses of All Sizes

The SecureDrive storage solutions are hardware encrypted devices that eliminate data leaks. Their storage capacities range up to 8 TB and the device itself has a tough epoxy coating and has parts that cannot be reverse-engineered.

The KP model can only be unlocked by entering a unique PIN via the wear-resistant keypad. The BT model allows for access by using an app on a mobile device. Users can also authenticate using facial recognition and fingerprints.

The devices are FIPS 140-2 Level 3 Validated, ensuring total security. They even have brute force anti-hacking technology that clears the drive of information after 10 consecutive failed password entries.


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Laura Bednar

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