You might think that your business’s data is secure. But as thousands of companies will attest, nobody is completely safe from data loss or breach. What’s more, with data becoming more central to business operations, the costs of losing data are escalating. Imagine how much trouble your business would be in if you lost your customer contact information, for instance.
Here are some of the main reasons why your business needs to back up its data.
You Could Get Hit By A Ransomware Attack
As discussed in the opening, data is becoming valuable in and of itself. Because of its centrality to business operations, it’s fast becoming a new kind of currency – one that’s just as vital as physical machinery and human labor. Cybercriminals know this. That’s why they’re no longer trying to hack or sabotage your systems. Instead, they’re trying to extract your data so that they can demand ransom payments to have it released back. Worryingly, the majority of companies hit by such attacks actually cough up the money without much of a fight. If only they had backed up their data in advance.
One of the reasons why ransomware attacks are so prevalent now is that the majority of businesses don’t consider themselves a target for ransomware attacks. They argue that criminals aren’t interested in their customer data or their marketing research because it can’t be sold on to others. What they don’t realize is that those same data have enormous value to the company itself, and criminals can exploit that fact. Yes, the market for any particular company’s data is pretty small, but it’s not how much other businesses value that data which counts, it’s how much the victim does.
Disaster Can Strike At Any Time
As data security company Qoverage points out, natural disasters can lead to data loss. Estimates from FEMA suggest that more than two-fifths of businesses can’t reopen after a natural disaster and more than 65 percent fail within the first year.
One of the reasons for this is the failure to back up critical business data offsite on secure servers. Despite constant warnings from small business associations and people in the IT industry, most CEOs of small companies don’t prioritize backups, largely because of the belief that a disaster won’t happen to them.
Governments all around the world are cracking down on lax company data protection practices. As a result, losing your data could cripple your business further, if you’re subject to litigation.
The Direct Costs Of Data Loss
The direct costs of data loss are enormous too. Estimates by an industry magazine found that data loss had accelerated by more than 400 percent over the last couple of years. And the total loss to the global economy from computer downtime was $1.7 trillion.
Verizon has noted that even small data losses can have profound and long-lasting effects on company finances. A study commissioned by the phone giant found that losing just 100 files can cost a business in excess of $20,000.