Data recovery – A safety net for insurance
Adrian Broscoe
13/08/2008

Preparing for the unexpected is a significant challenge for businesses since everyday business planning is demanding enough in its own right. Maintaining the bottom line can be a daunting task without having to worry about what would happen if a fire destroyed the office building or the boss was injured and couldn’t work for months. But of course we do worry about these unlikely events – and prepare for the slim chance that they will occur through the form of insurance coverage.

For today’s business owner or chief security/information officer, options exist to insure against everything from damage to the flag pole outside the building, to loss of valuable papers and records, to dishonest acts committed by employees. Although some of these examples might seem extreme, should they actually take place, maintaining business continuity would be difficult without the help that insurance can provide. If a tornado demolished the headquarters of a company, it is improbable that the business could continue to operate without adequate coverage that would provide the resources necessary to rebuild or continue with business in the interim. Although we don’t expect these tragedies, the risk is great enough that we do take significant measures to guard against the repercussions of the events.

At the very least, most businesses purchase insurance to cover their buildings, and personal property that are used for business purposes (including computers and other office equipment). As mentioned above, however, they can also choose to protect themselves against a wide variety of other potential problems. If burglars strike and equipment is taken, insurance can cover the loss. If the power goes out and disrupts business for an extended period of time, insurance can help make up for lost revenue. If a hurricane hits and damages all of the company vehicles, insurance can pay for repairs.

In all of these scenarios, the next steps following disaster are fairly straightforward – file a claim, collect the insurance payment and make any necessary repairs. But what happens when the item in question isn’t a broken window or damaged vehicle? That is the issue that faces companies who experience data loss. On the surface, losing data doesn’t seem as devastating as losing a building, but in today’s digital age, without its data, a business simply could not operate. They could certainly find a temporary location if their main office was destroyed or buy new computers if theirs were damaged – but accounting for lost data is a different type of challenge and one that, unfortunately, insurance cannot solve.

Electronic data is clearly among the most valuable things a company possesses. Email, for example, has become the lifeblood of business. More than any other means of communication and any business tool, companies rely on electronic messages for running virtually every aspect of their enterprises. From simple internal communications to vital sales calls to customers, to invoicing and billing and high-level decision making, email is involved at every level of business life. A company could not live without email in the same way that it could not live without telephones or electricity.

Unfortunately, situations where a company loses vital data are not uncommon problems. Thousands of businesses across the country experience multiple data loss situations every year. When these data disasters occur, companies can choose to try and move on without the data, attempt to recover from backup, try to recreate the data, or engage a data recovery company to try and rescue the missing files. For those that attempt to push ahead without critical data, chances of surviving are slim – According to Gartner Group, approximately 50 per cent of small and midsize businesses that experience major data failure lasting more than 24 hours will go under.

Recovering the lost data from backup systems is a great option if current backups are available. However, companies need to be aware that restoring from backup is not a cure-all solution since restores can be extremely time-consuming and may not contain all of the necessary or most current data.

That leaves data recovery as the last viable solution for data loss victims – and it is a solution that many companies are using with surprising regularity. Some data recovery providers are recovering more than a terabyte of data for corporations every single day!

These days, businesses have many options available to protect themselves against data loss. As mentioned above, complex storage systems allow for extremely robust backups to be made every day. Companies can also protect all of their data by using replication services that mirror all of the data on their servers to an alternate location. Just like insurance, businesses employ these safeguards not because they necessarily want to use them – but because they have to be prepared if problems occur. The goal is to mitigate loss as much as possible.

Data recovery enters the picture because even the insurance provided by backup systems is not foolproof. Just like the data that exists on the main computers and storage systems, backups experience problems of their own, especially if they are not verified on a regular basis. The time it takes to restore backups might cause problems if it is not fast enough since the process can sometimes take several days depending on staff resources. Finally, the information just might not be current enough to use if the backup window is too large, creating the need for recovery services. In this way, data recovery acts as insurance for the insurance, or an extra safety net that is available if all else fails.

The best part is, preparing for this extra layer of insurance doesn’t cost a thing. Most prominent data recovery providers have no-cost partner programmes that provide businesses with a variety of resources, including discounts on service, educational materials about data recovery topics and most importantly, a dedicated service representative to manage the account.

Having someplace to turn when disaster strikes is the key to avoiding costly downtime and ensuring business continuity. An existing relationship with a data recovery provider is a way to formalise the outsourcing process where the provider can handle many of the difficult issues that come with losing data. With an account already established, the affected company doesn’t have to waste time searching for a provider, learning about their capabilities, haggling over prices and dealing with billing issues. They can get right to the business of restoring their data and resuming operations.

As insurance proves, being prepared ahead of time can make all of the difference. There are enough issues to manage when things are running smoothly – having to dig for answers in the midst of a catastrophe can cause problems that can derail even the most efficient business. Insuring buildings and personal property is a great first step in ensuring that your company can survive a disaster. But don’t forget about the data. Protect your business by making sure that data recovery is part of the equation. Like insurance, you hope that you’ll never have to use it – but data recovery can be a life saver when critical information is at stake. Having a partner to help you through the experience is the best way to avoid the difficulties that accompany data loss.

- Adrian Broscoe is General Manager – Asia Pacific for Kroll Ontrack.

advertisement