According to research by the University of Texas, only 6 percent of companies suffering from a catastrophic data loss survive, while 43 percent never reopen and 51 percent close within two years.

Gartner estimates that only 35 percent of SMBs have a comprehensive disaster recovery plan in place.

International Data Corp. estimates that companies lose an average of $84,000 for every hour of downtime. According to Strategic Research, the cost of downtime is estimated at close to $90,000 per hour.

According to a recent NFIB National Small Business Poll, man-made disasters affect 10% of small businesses, whereas natural disasters have impacted more than 30% of all small businesses in the USA. Hurricanes are by far the most destructive force causing power failure, flooding, customer loss, and the closure of many businesses. In California, we have to consider earthquakes and fires.

According to a recent Touche Ross study, the survival rate for companies without a disaster recovery plan is less than 10%!

Get a hold of this… according to analyst firm IDC, about 70% of all successful attacks on computer networks were carried out by employees and insiders.

Where do companies go wrong?

Based on the research above, to some degree, it shows that companies have a willingness to have a disaster-recover plan in place. However, most of them don’t put much emphasis on testing it on a regular basis. Testing may make common-sense, but too many times companies wait until they go through a live-disaster to actually test their plan. Why? Because testing a disaster-recovery scenario may intimidate some companies. It’s one thing to have a defined solution process for recovery, but being able to test it and test it sufficiently is another.

On the same token, it is not sufficient to test once and assume all will run smoothly. Firms are almost constantly changing. New technologies are always being introduced, more threatening viruses are being created and even employee turnover in an IT department can be reason to conduct disaster-recovery testing. Hence the reason that you must have some processes in place that can:

  • monitor backup jobs to make sure they complete successfully and that are valid
  • have at least a monthly review meeting to see what exactly you’re backing up
  • think about the possibility of backing up offsite (don’t rely on an employee to take the media offsite nightly)
  • rely on proven technologies and experienced people to help you along

With that said, I’ll leave you with yet another question. If a disaster (the Big one) should strike today, how long will it take you to get back in business – and most importantly – would you?

I think it may be time that you reconsider (or re-test) your disaster-recovery plans.

Based on the research above, to some degree, it shows that companies have a willingness to have a disaster-recover plan in place. However, most of them don’t put much emphasis on testing it on a regular basis. Testing may make common-sense, but too many times companies wait until they go through a live-disaster to actually test their plan. Why? Because testing a disaster-recovery scenario may intimidate some companies. It’s one thing to have a defined solution process for recovery, but being able to test it and test it sufficiently is another.

Get Managed

We know that disaster-recovery planning and ongoing maintenance is important to any business – no mater the size. That’s why, as part of our managed services program, we include the people, processes and technology to make this a reality. Why don’t you contact us and find out how we can help make IT work for you.