Data Loss and Company Closure goes Hand-in-Hand
Losing your company information is detrimental for your business. It has been found out that 75% of businesses that lose their data close within 6 months. A bank runs on money, a car runs on petrol and a business runs on the clients’ data. No data, no business…It’s that simple. “How will my business go down?” you may ask. Here’s how:
Once the information has been leaked out that the organization has lost its information, rumor will spread and your company will have a bad reputation. For example, imagine if a major commercial bank losing all the information of its clients! That would be disastrous! Once the information has been leaked out and some clients get to know, word will spread fast like a wild fire! Human beings are the best rumor mongers and this kind of behavior may end up bringing down a great organization. People will always add false information. What makes it worse is if the media is involved. They have ways of changing the stories (especially the headlines) to suit their readers. Once this happens, a company is bound to close and it will do so fast!
Great Expenses: The cost of recreating data from almost nothing is estimated to cost about $6000 per megabyte. Believe it or nor, it’s that expensive to start from scratch. There are a lot of costs that are put into recreating the data. Back to the bank example; imagine if you have a client base of 5 million people, having to call of them to come and give in their information again is expensive. Another expense is incurred where the employees will demand to be paid overtime for reconstructing the data all over again. To add insult to injury, unhappy clients will file lawsuits against the bank. Imagine a case where all the 5 million clients all file lawsuits against the bank. The bank will simply close down!
This is why it is always advisable to always keep a good backup system, have a proper data disaster recovery plan or better still employ data recovery services from a reputable recovery company. It is much cheaper and you can save a lot on that.
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About the Author:The author is a data recovery specialist. Get more information on data recovery services here
Article Source: ArticlesBase.com - Data Loss and Company Closure goes Hand-in-Hand