For as much as businesses spend on technology, it would be natural to assume that the hardware they buy is going to work the way it’s supposed to once it’s installed in an office or facility, right? Unfortunately, that’s not always the case… and when it doesn’t, the costs to an organization can be enormous, or even deadly.
If you think that might be a little bit of an exaggeration, think again. An unexpected data loss, due to an office fire, theft, electrical surge, or other garden-variety disaster, can absolutely do big damage to your business – or even put you out of business.
To understand why, you have to realize that there are two categories of costs associated with lost data and damaged hardware:
The First Cost Associated With Lost Data is Monetary
Just as you might expect, losing access to important information costs your business money in a very real and tangible way. Right away, there are the expenses associated with finding new drives, backup systems, servers, and/or storage media. The expense of these items alone can be staggering, with a single piece of new hardware often running into the tens of thousands of dollars. Those losses should be significant enough themselves for businesses to consider protection.
The second immediate expense has to do with the havoc that is caused by lost files, information, and communications. These could include emails, invoices, and even sensitive customer records. Losing any of these, even temporarily, could put an enormous dent in your company’s cash flow. And, depending on the severity of the data loss, you might not ever be able to recover all of the money that slips through your fingers when important files disappear.
The Second Set of Costs Are Hidden, Yet More Significant
If you were developing a spreadsheet of expenses associated with a failed piece of data storage equipment, the first two items we mentioned would undoubtedly show up on the list, and would probably have significant dollar amounts attached to them. And yet, there are a couple of other expenses that would be even larger, even though they would be more difficult to calculate.
The first is unplanned downtime. That is, the hours (or days and weeks) that your staff spends not working to their fullest capabilities, and possibly not even working at all. Add in the overhead associated with utilities, office space leasing, etc., and it’s easy to see why these costs could quickly dwarf anything you actually spend on hardware or IT help.
Even more importantly, when data is lost the credibility of your company takes a severe hit as well. Regardless of what kinds of precautions you took beforehand, customers, vendors, and colleagues don’t feel as comfortable working with you, or may decide (fairly or not) that their account information isn’t secure enough with your company. Who knows what kinds of long-term bottom-line repercussions that kind of negative attention could have?
The Easy Solution to Lost Data Costs
Although a lot of business owners and executives like to assume that their data is safe because they have never had a problem in the past, that philosophy puts the future of their companies in serious doubt. The smarter option is to explore colocation at a Canadian data centre, where they can enjoy cost savings, hardware upgrades, and automatic backups as part of a single package.
With this kind of configuration, files are archived securely on a regular basis. In the event that you do experience some kind of important data loss within your office, or with another piece of technology, turnkey recovery services mean you can usually be back online – and fully restored – within a matter of minutes. Best of all, costs are extraordinarily reasonable, and there aren’t any complicated setup or configuration procedures.
In this way, colocation services are virtually bound to save your business money in the long term. In fact, you can think of integrated data backup and disaster recovery as a form of life insurance for your company. You might hope to never need or use them, but you’ll certainly be glad you’re protected when the unexpected strikes.
Want to know more about colocation, Canadian data centres, or data backup and disaster recovery? Come back to our blog next week for more great tips!