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43% Of Companies That Suffer Huge Data Loss Never Re-Open

12 June 2009

In an article on ThePost.ie, Jim Martin, Chief Operating Officer of Worldport Ireland, a company that specializes in providing internet solutions, said that the majority of businesses affected by the US terrorist attacks in September 11, 2001 have lost data that cannot be replaced because data recovery plans were not designed to cater for such a large-scale disaster. Martin adds that:

"The majority of data would have been stored on desktops and laptops not in any central repository off-site. Even if the data was backed up to a server, that machine was most likely in a room in the same building."

It must be noted that the World Trade Center, which was destroyed in the attacks, was home to some of the leading financial and investment institutions in the world, including American Express, Credit Suisse and Deutsche Bank.

Rory Nolan, technical director of Irish risk management company, ITRM, said that some companies never recover from major losses of data. He added:

"Only 6% of companies that suffer catastrophic data loss survive in the long term. Furthermore, 43% never re-open. Of the rest, 51% close within two years of the disaster."

Nolan added that of the 350 businesses operating in the World Center before the bombing, 150 were out of business a year later.

Businesses, big or small, should have disaster recovery and protection from business data loss as a top priority in light of the tragedy of 9-11. Companies and small businesses do not seem to realize the importance of a data loss prevention plan until a disaster happens. By then, it might be too late.

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