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Data Loss and Downtime Cost Enterprises $1.7 Trillion Per Year

EMC Corporation announced the findings of a data protection study that reveals that data loss and downtime cost enterprises $1.7 trillion in the last twelve months, or the equivalent of nearly 50% of Germany's GDP.

Data loss is up by 400% since 2012 while, surprisingly, 71% of organizations are still not fully confident in their ability to recover after a disruption.

They surveyed 3,300 IT decision makers from mid-size to enterprise businesses across 24 countries.

Impact of Data Loss and Downtime
The good news is that the number of data loss incidents is decreasing overall. However, the volume of data lost during an incident is growing exponentially:

  • 64% of enterprises surveyed experienced data loss or downtime in the last 12 months
  • The average business experienced more than three working days (25 hours) of unexpected downtime in the last 12 months
  • Other commercial consequences of disruptions were loss of revenue (36%) and delays to product development (34%)

New Wave of Data Protection Challenges
Business trends, such as big data, mobile and hybrid cloud, create new challenges for data protection:

  • 51% of businesses lack a DR plan for any of these environments and just 6% have a plan for all three
  • In fact, 62% rated big data, mobile and hybrid cloud as 'difficult' to protect
  • With 30% of all primary data located in some form of cloud storage, this could result in substantial loss

The Protection Paradox
Adopting advanced data protection technologies decreases the likelihood of disruption. And, many companies turn to multiple IT vendors to solve their data protection challenges. However, a siloed approach to deploying these can increase risks:

  • Enterprises that have not deployed a continuous availability strategy were twice as likely to suffer data loss as those that had.
  • Businesses using three or more vendors to supply data protection solutions lost three times as much data as those who unified their data protection strategy around a single vendor
  • Those enterprises with three vendors were also likely to spend an average of $3 million more on their data protection infrastructure compared to those with just one

 

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