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Data loss – How much would you pay to restore lost files?

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Peter Thompson
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Given that the value of data is exponentially increasing and that the backup market is in transition, it is an interesting exercise to consider the differences between the costs of backup and restore. This article will highlight aspects that will assist in comparing the value of backup with the value of restore.

The action of backup is a certain regular action taken by the company in order to prevent data loss or loss of intellectual property. In our experience, the amount of actual restores performed is not very large at all. The entire point of “backup” is the ability to restore. Backup alone is of no significant value. However, companies tend to look at the cost of backup to determine what the right solution for their business might be.

What is the cost of potential data loss for your business?

Maybe the entire backup business model should be turned around and the cost of restore should be cost measurement. Estimating the cost of data loss in Gb is far more important than the cost of backing up the entire data. Can you estimate the potential cost of data loss in Gb in your company?

Most companies regard backup as an expense rather than as an investment. Backup is effective insurance against data loss, since data is one of the top three most valuable assets in a company along with its physical assets and its employees. Proper prevention of data loss is something that enables shareholders, IT managers and employees to feel confident of their company’s system. The knowledge that their working tools can be restored to their previous state in the event of a mistake or disaster is comforting.

The cost of potential data loss

Data loss and computer downtime have serious implications for business. Data loss can lead to costly downtime for sales and marketing and reduced customer service while customer databases are restored or rebuilt. Finacial data loss can lead to lost contracts and stock value, or even worse. It is difficult to determine the real value of data because there are many factors involved. Nevertherless, the value of data is the equivalent of not having data.

The cost of data loss varies depending upon its application, as well as the potential value that can be captured from data use. In addition, there is a cost associated with recovering the data, as well as lost productivity due to computer downtime.

Should you separate the cost of backup and the cost of restore of potential data loss?

One interesting discussion for vendors is whether it makes sense to separate the cost of backup from restore. Does it make sense to have different pricing for backup and restore? For example, most companies believe that backup is not of great value, whereas restore is considered to have an incredibly high value. I think it is possible for businesses to estimate how much they would pay for data loss restore. This is when the cost of restore becomes calculabe.

Having trouble making difference between backup and restore? Contact us for more info and get an expert’s opinion for free.
Back up your future! Prevent data loss!

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About Peter Thompson

Peter Thompson
Peter Thompson founded GCOMM in 1996. He received his Bachelor’s degree in Software Engineering/Information Systems from Griffith University and his MBA from Nyenrode Business Universiteit in Holland. He believes in building great teams of people, both in business and socially.
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