Lessons in Data Loss: A Case Study

As the sole sales rep in Toronto for BC-based Insinc, Jayne McCaw Gilbert faces daily challenges in expanding new markets for the specialty IP solutions provider. But nothing prepared her for the problems she encountered last July when her laptop mysteriously disappeared while in the hands of an express postal service. While she frantically tried to track down her computer, the gut- wrenching reality hit her: none of her data was backed up.

Dealing with insurance and replacing the laptop was one thing; the sheer loss of hundreds of hours of hard work was quite another. "Three months after I lost my laptop and started rebuilding my files, I still have only one third of my data recovered," says Gilbert. "It will be at least six months before I will reach full productivity, and I'll never have everything back"

Contracts, outstanding proposals, price quotes and contact information were just some of the files that were lost. Data mining services were considered but ultimately not in the budget. She lost sleep and spent countless anxious weeks worrying about client information and how she was going to stay on top of her projects. "I never want to go through it again," says Gilbert.

Despite the fact that data loss costs companies billions of dollars in lost productivity each year, IDC analyst Cynthia Doyle estimates that while sixty percent of all business data is held on PCs and laptops, forty percent of small and medium size businesses don't back up their data at all. But although over 2000 laptops are lost or stolen every day, it seems that many mobile workers like Gilbert just don't believe it can happen to them.

While more and more people are turning to the convenience of laptops, these are the most vulnerable to loss or theft. But it isn't only human error that can cause data loss. System malfunctions, computer viruses and software corruption are also leading causes. And because users today store more mission-critical data than ever before, these losses are becoming an even bigger issue for the small business owner.

According to a recent survey, thirty-seven percent of respondents admitted to backing up their files less than once a month. But data loss can be much more than just inconvenient. In total, seven out of 10 small businesses go bankrupt within a year of experiencing a major data loss.

Like Gilbert, web designer Ashley Macdonald learned a hard lesson about data loss when her computer crashed two years ago. She lost ten year’s worth of business information as well as her personal diaries, photos and mementos. "Everyone kept asking me why I hadn't backed up my files," she recalls, "and I just didn't have an answer." Her search for a backup solution led her to try an online service, and she hasn't looked back.

Traditionally, external backups to servers, tapes and CDs have been the methods of choice for those small companies looking to prevent the crisis that Gilbert and Macdonald faced. These are all effective, but each has its own challenges. High costs, limited shelf life, and a lack of encryption security are some of the problems with these methods. Furthermore, the hassle and expense of transporting the tapes off-site mean that backups are not always the priority they should be. Most importantly, however, is human error; it’s up to the laptop user to remember to perform backups on a regular basis. And this is where most people drop the ball.

When Macdonald chose the on-line backup and storage site Data Deposit Box as her solution, she did so for its simplicity. The service is cost-effective and very secure, but better yet it is hassle-free. There’s no button to push or icon to click to backup files; the software runs whenever the user is connected to the Internet. Because the backups are constant and run in the background, the possibility of human error or omission is eliminated. Industry experts are hopeful that the ease of these new systems will ensure that more small businesses and individuals will be protected from loss in the future.

Gilbert and Macdonald learned about the cost of data loss the hard way. Since then, both have addressed the issue of backup and now consider it critical.

Recently, the inevitable happened, and Macdonald’s computer crashed again. "I had a moment of panic, but then I realized I was protected. Within 20 minutes, I had all my data back. I now have no excuses because my online backup service is completely user-friendly. It’s just not worth it not to backup my files."