Data Loss Costs Indian Organizations $1 Mn In One Year: Survey

by CXOtoday News Desk    Jul 06, 2016

Data protection

Organizations are failing to appreciate the growing challenges of protecting their data and, as a result, are experiencing the economic impact of data loss, according to a new research.

The findings from the EMC Global Data Protection Index 2016, an independent study by Vanson Bourne of enterprise backup in 18 countries around the world, revealed that, while businesses have been successful in reducing the impact of the four biggest traditional data loss risks, they are unprepared for new, emerging threats, which are taking their toll instead. When compared to the EMC Global Data Protection Index 2014, 13% more businesses experienced data loss or disruption in the last 12 months, costing them an average of US$914,000. In India, the average cost of this loss is US$114,000.

EMC commissioned the updated research to help organizations recognize and prepare for the rapidly changing landscape of threats to enterprise data. Survey results from the EMC Global Data Protection Index 2016 identified the following three major challenges to modern data protection:

1) Threats to Protection Data

Nearly a quarter (23%) of businesses surveyed had experienced data loss or unplanned systems disruption due to an external security breach and that number increased to over one third (36%) when taking internal breaches into account. In India, 46% of businesses suffered unplanned system downtime and/or data loss due to an external or internal security breach.

Businesses are increasingly facing threats not just to their primary data, but also to their backup and protection data. Whether combating cyber extortionists demanding cash to unlock data encrypted by ransomware, or other risks posed to backup and protection data, businesses need to find solutions that put their ‘data of last resort’ beyond harm’s reach.

2) Threats to Data in the Cloud

More than 80% of survey respondents indicated that their organizations will run at least part of eight key business applications in the public cloud in the next two years; yet less than half said they protect cloud data against corruption and less than half against deletion. More than half said they already run their email solution in the public cloud. And, overall, respondents already had, on average 30% of their IT environments based in the public cloud.

In India, on average 34% of organizations have their IT environment in public cloud and more than 60% organizations believe that not all their data stored in the cloud is protected.

Because SaaS application providers often won’t protect against accidental loss or deletion by an employee, EMC believes it is critical for organizations to include cloud applications in their overall data protection strategies. 

3) Evolving Protection Needs

Nearly half (54%) of organizations surveyed in India are not very confident they could fully recover their systems or data in the event of data loss or unexpected systems downtime. Confidence also suffers when it comes to data center performance, with only 42% declaring they are confident that their solutions will be able to keep pace with the faster performance and new capabilities of flash storage. Moreover, 83% think that their organizations current data protection solution will not enable them to meet all future business challenges. 

Businesses are increasingly facing threats to not just to their primary data, but also to their backup and protection data. Whether combating cyber extortionists demanding cash to unlock data encrypted by ransomware, or other risks posed to backup and protection data, businesses need to find solutions that put their ‘data of last resort’ beyond harm’s reach.