The Need for Data Storage
October 6, 2008
Small businesses lose billions of dollars each year due to data loss from hardware or system failure, human error and software corruption. Natural disasters account for one percent of all data loss. Although the probability is small, the impact can be overwhelming. In fact, companies that aren’t able to resume operations within ten days of a disaster are not likely to survive.
Catastrophes aside, being fast and nimble is one of the defining characteristics of small and medium sized businesses. Finance executives need fast access to accurate information to perform optimally. In any business however, finding the right version of last month’s financial statements can sometimes be difficult. If it takes two weeks or more to access and validate an operating unit’s financials, that may have just lost the deal. It is not only important to provide data protection, but quick and easy access to the right information.
In today’s increasingly wired business world, the best way to recover from data loss due to a natural disaster is to store backup data in a physically separate location. There are companies that specialize in preserving documents on tapes and discs that are stored within other structures. Although they too are susceptible to natural disasters, these companies have helped to save numerous businesses where the damage has only been internal.
Another option that has been gaining attention recently has been to store files remotely. Once a service available only to large companies due to cost considerations, there are now several firms specializing in offering offsite data storage to small businesses. Such systems offer their clients the opportunity to store, archive and even authenticate their data over a remote network for less than $100 a month so that important files can be accessible even if the office is not.
Outsourcing in this manner often makes the most sense. Financial executives shouldn’t be afraid to focus on their business’ core competencies. If there is no more room to grow IT staff in the budget, selective outsourcing can be a great way to achieve operational efficiency and real savings. Vendor and product selection are crucial to the success of this strategy. Try to avoid enterprise, all-in-one solutions, as these products often cause more problems than they solve, and in small businesses these solutions can artificially create institutional rigidity when flexibility is an asset. Magic bullets don’t exist.
Real bullets, however, do. You’d be amazed at what a single bullet can do when properly aimed and fired. “High concept,” single-service solutions often offer a much richer understanding of their chosen expertise. This will result in flexibility of service offerings and features you didn’t know you needed. Evaluate any vendor or product in the context of an overall plan. Picking vendors that can meet your growth targets will result in a longer-term solution. There is no greater sapper of time, energy or enthusiasm than revisiting the same problem over and over again.
Beyond the cataclysmic events that are covered literally 24 hours a day on the cable news networks, there are circumstances that can be equally damaging to a small business without ever making the front page of the local paper. What if the gardener pulling out the weeds hits a main pipe for the sprinkler system and floods the basement of your building where your documents are stored? What if a disgruntled employee gets overly enthusiastic with the “delete” key before packing his or her bags? Implementing a data archiving strategy to prepare for once-in-a-lifetime natural disasters also prepares your company for these smaller-scale but equally damaging human errors to ensure that your business runs smoothly, no matter what comes your way.
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The Need for Data Storage…
Natural disasters account for one percent of all data loss. Although the probability is small, the impact can be overwhelming. In fact, companies that aren’t able to resume operations within ten days of a disaster are not likely to ……