Disasters have a way of not only coming at the wrong time, but at a price. And as research shows, they become more expensive year after year. 2017 is on record as the costliest year for climate-related disasters in the United States, tipping the scales at a whopping $306 billion in damages. Hurricane Harvey alone accounted for $125 billion of that amount.

While natural disasters are certainly a legitimate concern, the fury of Mother Nature isn’t the only cloud hovering over businesses. Whether it’s human error, equipment failure, or malware, today’s dynamic disaster landscape poses a cost prohibitive threat to the modern-day enterprise. But how do you quantify that cost? Money put towards employee overtime, consulting, and third-party services makes the cost of IT recovery fairly straightforward. Other aspects are not so obvious yet factor just as heavily into the overall cost of disaster.

Measuring the Loss of Production

Depending on the severity of the incident, a disaster could force productivity to a grinding crawl, or halt it entirely. In any event, the loss of production can be damaging to an organization’s bottom line. This is especially the case for employers who are contractually obligated to pay out fixed salaries whether staff can perform their job functions or not.

The cost of loss production can be determined by taking the following actions:

We’ve kept the math simple, but the above examples illustrate the monumental impact the loss of production alone can have on the overall cost of disaster.

Weighing the Intangibles

How you respond to disaster can make all the difference in your ability to make a full recovery. It can also shape customer perceptions. A potential client may decide to take their business elsewhere if your website is constantly unavailable when they stop by to make a purchase or gather more information. In addition, knowing that their personal data was potentially exposed in a security breach could lead to existing customers losing trust and ultimately deciding to part ways.

The Bottom Line

Just a few hours of downtime can have a major impact on your business operations. Often, reputational damage and the ensuing loss of customer confidence results in the loss of revenue.

Some costs are virtually impossible to calculate but can be as detrimental as any quantifiable losses. Despite being incredibly difficult to measure, understanding the devastating implications on reputation and customer relations can help organizations understand the importance of being prepared for disaster.

Regularly backing up for safe and quick online data recovery and restoration is very important when preparing against disaster. The StorageCraft® Recovery Solution™ can help you with that. We’re the data recovery pro! Our backups include everything on your physical and virtual machines—the operating system, applications, settings, and data—so recovery is complete. Automated, advanced verification of backup images shows you backups are working properly and guarantees dependable, complete system recovery. Contact us today for more information or click here to try StorageCraft® Shadow Protect™ today.

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  • Hello Carlo,

    Yes, you have pointed out the travails of being both a Techie and a Marketer, namely predicting software release dates. We both know how fast technology changes these days. What with Microsoft updates, new hardware (and the associated drivers), the constant flow of Linux distros, and StorageCraft's penchant for getting everything perfectly aligned before a release and my job as a Technical Marketer job becomes nigh impossible. I apologize for getting the date wrong, and will post more information about the upcoming software release as soon as I get it.

    Thank you for keeping me honest.


  • You’re correct, we were referring to the guest. But, after further review, we noticed that the sentence you pointed out in step five doesn’t quite fit with the remainder of the post, so we’ve removed it. It is, however, still important to check the virtual machines’ event logs for VSS errors-- this is just a standard best practice to make sure everything is running smoothly.

  • Interesting point, Kurt. The more you lean on the cloud, the more you stand to be without if your cloud provider takes a temporary fall. An example would be the recent outage of Microsoft Azure (check out our article) For disaster recovery, the cloud is great because your backups are there in emergency when you need them. It's very important who you choose to work with when it comes to storing your backups in the cloud and you'll want to go with people in the industry that are true experts in backup and disaster recovery. The idea behind backup and disaster recovery is redundancy. You need a backup of, well, everything. That means if you've got a cloud provider taking care of infrastructure needs you'll probably want to have a plan for what you'll do if their cloud goes down for awhile. If you're relying on your own hardware, you'll want it backed up to a place that allows you to easily retrieve it in an emergency. What's even better is to use a cloud provider that gives you the ability to virtualize from the cloud so that your downtime is almost nothing. Check out StorageCraft Cloud Services if you'd like to learn more."

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