Data loss eating profit of SMBs

FREIBURG, GERMANY: A recently released survey by Paragon Software Group (PSG) reveals that a large number of small and medium-sized businesses (SMBs) admitted that inadequate or non-existent backup measures not only affected their revenues but also partner relations and brand reputation. 22 percent of the respondents reported loss of critical business information, which had a significant impact on their businesses.

Small businesses are key players in regional economies. Many small business entrepreneurs are experts in what they do but start a business without any training or experience in IT management practices. As a result of inadequate IT management, small businesses experience data loss and, consequently, fail in the early years as a business.

According to a report by PricewaterhouseCoopers, 70 percent of small businesses that have a major data loss go out of business within a year. They fail not because of a flaw in the product or service they offer, but because the business was not properly managed from the IT side.

"Paragon's survey reinforces that 41.18 percent of small businesses do not have dedicated IT staff. SMBs need an affordable and reliable data management and maintenance tool to manage data and prevent any data loss," said Miro Milos, director of channel sales at Paragon Software.

The survey shows that 29.41 percent have no IT administrators in-house or a possibility to hire one. 19.23 percent of the SMBs look for data management tools to handle all data maintenance on site and from a single interface, with minimal involvement. 23.53 percent back up data manually and 76.47 percent back up data automatically.

50 percent prefer to store data physically and virtually. 20 percent do not conduct daily backups. 42.86 percent of those who do not back up daily indicated that the reason is that it's not an efficient use of their time. 21.54 percent said reliability is the most important factor in data backup tools.