Data Loss May Cost You More Than a Data Backup Solution
Data loss is easily the numero uno reason for business disruption and downtime. Ranging from a simple human error to a full-blown ransomware attack, it can cost your business in more ways than you think.
Did you know, the average cost of downtime is $11,600 per minute and studies show that an hour of downtime can cost a large enterprise a whopping $700,000?
Thanks to the outbreak of the COVID-19 pandemic, the year 2020 saw an unprecedented increase in the number of businesses suffering data loss due to ransomware attacks. Cybercriminals exploited the lowered security barriers in companies due to remote working, causing global damage to the tune of $20 billion. Recovering from data loss due to ransomware attacks is extremely tough for companies, especially smaller businesses. Statistics show that one in five enterprises cannot recover from a ransomware attack and are forced to shut shop permanently.
The average cost of downtime is $11,600 per minute and studies show that an hour of downtime can cost a large enterprise a whopping $700,000.
Factors that lead to high data loss cost
1. Loss of reputation
This is a significant loss and one that you cannot put a cost on. If you cannot service your customers, the reputation you may have built over several years can get tarnished in a few short days. And if the reason is a ransomware attack where customer data is compromised, it damages customer perception and cheapens your brand. This is a sure-fire way of losing your customers to the competition.
2. Disruption to revenue/ Financial loss
If your business comes to a complete halt because of a breakdown or data theft, it directly results in disruption to your revenue flows.
3. Ransom pay-out
If you are an unfortunate victim of a ransomware attack, your data will be hijacked, encrypted, and held at an exorbitant ransom. Paying off attackers can lead to considerable financial losses. Even if you do decide to pay up, there is no guarantee you will recover your data. You are just stuck between a rock and a hard place in such situations. Protection from ransomware is also crucial for regulatory compliance and being attacked could also mean that you run afoul of regulatory compliance and attract those penalties as well.
Paying off attackers can lead to considerable financial losses. Even if you do decide to pay up, there is no guarantee you will recover your data.
4. Lost opportunity costs
Whether you lose data due to hardware failure or destruction, human error, or computer virus, recovering it can be an expensive affair. You may have to divert the IT team from their day-to-day operations and get them to spend their hours getting the data back. Certain cases may also require help from IT consultants and professionals. So, your best employees will be spending time helping you recover instead of working on new innovations or getting you new business.
Backup before you have to pack up
Sounds harsh? Reality often is. But backing up your data to the cloud is the simplest and most effective way of ensuring ransomware protection. If and when you do suffer a data loss, a cloud backup solution can mitigate the impact and help you retrieve your mission-critical data reliably.
Take, for instance, a ransomware attack. If your data is hijacked and encrypted, and you have a secure and reliable backup, you don’t need to be at the mercy of a faceless and nameless attacker. All you have to do is restore your backup data and you’re back in business.
Cloud data backup
A cloud data backup is, in fact, the most cost-effective way of guaranteeing ransomware protection. Ransomware cannot easily replicate and spread to cloud storage targets which require a separate authentication step and an API based method of access. Cloud storage that way provide an “API gap” which is not possible when backing up locally to SAN/NAS storage targets.
A fool-proof data backup plan is to store the data in a secure storage target and make sure it safe both while in transit and at rest. Parablu’s BluKrypt, a secure cloud privacy gateway ensures data is encrypted when it travels backs and forth from the cloud and even while it is stored in the cloud. This enables end-to-end data encryption and privacy so that even if data falls into the wrong hands, it is of no use and cannot be used for malicious activities.
The decision is simple. A cost-effective and secure cloud backup solution can safeguard your business from data loss and disruption. It can potentially save you millions of dollars and give you peace of mind. The time to act is now!
Get in touch with us today to find out how our award-winning products and solutions can help you enhance cloud security in 2021.
