Data Loss and Downtime costing $1.7 trillion loss to Enterprises a year!

All those connected to storage industry will be surprised to hear this news. According to a survey conducted by Vanson Bourne and commissioned by EMC, it is estimated that data loss and downtime are costing $1.7 trillion loss to enterprises ever year; which compares to nearly half of Germany’s Gross Domestic Product (GDP) split between data loss-$754.7 billion and downtime $954.4 billion.

This most staggering statistic came into light, when a survey involving 3,300 IT professionals across 24 countries was conducted. The specified monetary amount was attributed to failed or non-existent data protection schemes.

Actually three surveys came out this week, that focused on the challenges of IT departments related to data loss and reduction in downtime costs. EMC’s Global protection survey found that the data loss and downtime is costing $1.7 trillion in the last 12 months.

The Veeam Data Center availability 2014 report, conducted by market research firm Vanson Bourne also found that more companies were continuing to fall further behind their service level agreements even as companies are fully modernizing their data center architectures.

The third survey, which was quite focused on cloud backup and Disaster Recovery, was commissioned by cloud provider Zetta dot net. It revealed that over 48% of its 200 respondents experienced problems in trying to recover data even with mature bare-metal restore technology.

EMCs Global Data Protection Index survey involved 3,300 IT decision makers from mid to enterprise size businesses worldwide. The survey revealed that over 51% of businesses lack a Disaster Recovery (DR) plan for big data, mobile or hybrid cloud workloads and only 6% have a DR plan for all the three specific mentioned data related concerns. The survey clearly mentioned that data loss has grown by 400% since 2012. It also showed that over 30% of primary data was located in some form of cloud storage, and 71% of businesses were not full confident on their data continuity plans after a disruption.

The data loss impact was severe in between 2012-2013, as more than 64% of enterprises experienced data loss or downtime over the last year for an average of 25 hours of downtime. Over 37% reported loss of revenue and 34% said product development was delayed because of downtime.

The Veeam data Center Availability report, which involved 760 IT decision makers from worldwide organizations, revealed that organizations were experiencing downtime at an average of 13 times and backup failure atleast 2 times a year. Hence, backup failures are costing organizations at least $682,182/year.

The above mentioned same survey also revealed the fact that organizations were generally meeting their Recovery Time Objective (RPO), but not their Recovery Point Objective (RPO). The finding further revealed that mission critical applications were taking an average of 2.86 hours to recover against an RTO of 2.69 hours. Non-Mission critical applications had an average 8.45 hours of recovery against an average RTO of 10.02 hours. Whereas, mission-critical apps are being backed up every 4.81 hours against an RPO of 3.53 hours and non-mission critical apps get backed up every 14.46 hours against an RP of 11.53 hours.

Therefore, this clearly indicates data loss, as there is a lag time between RPO and actual backups.

In the same survey, over 83% of respondents said that they had a gap between the level of availability they can provide and what end users demand.

In November 2014, another research firm Incapsula reported that distributed denial of service attacks cost organizations $40,000/hour. This is an average cost of an attack being estimated at roughly $500,000. Another study made by Neustar revealed that outages caused by DDOS led to losses of between $50,000 and $100,000 per hour.

So, this clearly indicates that most of the companies are ill-equipped when it comes to business continuity.

According to the storage giant EMC, the usage of advanced data protection technologies can make a considerable difference, but the fact is that most organizations are depending on single vendor for supplying these types of solutions. The study conducted by the storage giant also revealed that organizations relying on 2 to 3 vendors not only spend $3 million more on their data protection infrastructure, but they also loose three times as much data compared to businesses that rely on services from a single provider.

The encouraging fact revealed in this survey was that United States, Netherlands, Singapore, Hong Kong and China have the most mature data protection programs. While, UAE, Turkey and Switzerland are at the bottom-line, in this genre.

Most companies which participated in the Veeam survey admitted that they were planning to upgrade their 94% of storage and their technology related to data protection and data continuity within 2 years.

Therefore, all you data storage vendors out there ask your sales and marketing teams related to Back Up and Disaster Recovery to buck up soon!

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