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The Effects of Data Loss on Your Business

The Effects of Data Loss on Your Business

By RossBackup (714 words) | Posted in Small Business Backup on August 25, 2015

There are (3) comments permalink

If you haven’t taken advantage of cloud storage yet, these few outcomes may change your mind. Whether it’s creative property or the fiscal numbers of your financial department, most businesses consider their data to be their most valuable asset and losing that data can be detrimental to the longevity of a business.

According to the Wall Street Journal, over 300 companies across the United States experienced some sort of data loss or complication in the past year. If you lost your data, would you be able to bounce back? The effects of data loss on your business can set your profit margin back, cause unnecessary stress on yourself and your staff, and can even end your business if you aren’t careful.

Learn how to avoid these effects of data loss by taking advantage of cloud backup today. 

IT Stress

If you lose your data, your IT department will have to work overtime in order to recover lost files, install new and improved anti-malware and anti-virus software, and implement a new backup procedure. More than likely, you will pay out of your own pocket in order to cover these repairs, and you cannot guarantee that the new backup procedures are being tested regularly.

Using cloud backup reduces your risk of human error when it comes to departmental backups, and you can rest assured knowing that the cloud is regularly tested by third party programs focused on improving the safety of the cloud. 

Loss of Access

Even as your IT staff works to repair and recover the lost data, you will not be able to access any of it. With your computers down and your backup systems not performing as they should, you will not be able to access any of your important business data until the issues are fixed. During that time, you might not be able to run your business, especially if your business runs predominantly online. This can set you back if your data takes weeks to recover.

With cloud backup services, you will be able to access your information from anywhere with an Internet connection, even if your office computers are all down. This ease of access will reduce your stress and keep your business running smoothly no matter what technical issues come your way. 

Threat of Identity Theft

If your data loss is due to malware or hackers, then you run the risk of identity theft. Not only is your business at risk, but the identities of your staff and all of your clients are as well, especially if you keep important social security or credit card information on file.

Cloud backup offers extra security for this kind of information, but if you were operating a backup system outside of the cloud, that kind of protection is not always guaranteed. In order to protect yourself and everyone involved in your business, backing up that identifying information to the cloud. That way, even if hackers threaten your systems, they will not be able to access it. 

Loss of Business

Most businesses hope to recover 65% of their lost data, but sometimes 65% is not enough to keep a business running. If you lose key data involving client information and/or creative property, you run the risk of losing what you need to run your business.

Hackers may not have a rhyme or reason motivating their actions, but if they get their hands on the right kind of information, you and your business could be seeing the end. This dramatic ending can be avoided if you take advantage of cloud backup services that encrypt and protect your data through a series of redundant servers.

This type of backup makes it harder for hackers to break into your data stores, and will still give you access to these files should anything happen to them. You will be able to recover much more than 65% and therefore, keep your business running if you back it up to the cloud. 


The effects of data loss on your business can end your bottom line if you aren’t careful. Even if you manage to overcome the data loss, you will have spent more money than you intended trying to recover it. Your IT staff and your computer systems will have to have a complete overhaul, and new programs and anti-virus software will have to be installed.

Comments (3)

gravityusa posted on: March 9, 2016

This is the exact information that I was looking for. Thank you for sharing your expertise!
For more information visit our website:

Danny posted on: March 27, 2020

Make sure to check out Sertainty's data loss prevention software!

Rob S. posted on: December 8, 2020

Data loss is absolutely unfortunate, even beyond the reasons you detailed here. I think the best solution is to hire a cloud services company that not only prioritizes security but can offer peace of mind as well.

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