ALKHOBAR, 19 July 2005 — Many small- and medium-sized businesses (SMBs) have introduced enough IT and automation into their operations that they have begun to worry about data loss. It is a serious matter. Fifty percent of companies that lose their data go out of business immediately and 90 percent don’t survive more than two years, according to research firm Baroudi Bloor International. That is a lot of unnecessary risk for something so preventable.

The causes and instances of data loss are much more commonplace than most executives think — it is rarely an act of God. In fact, data loss is usually caused by an easily corrected system or user error, and recovery is quick if the data has been backed-up. Only three percent of all data loss is caused by fire, flood and other such disastrous events. The most common causes of data loss are hardware or system malfunction (44 percent), human error (32 percent), software corruption (14 percent) or viruses (7 percent).

Bob Schaefer, the new CEO of Breece Hill, whose company manufactures an integrated disk and tape-based backup, recovery and archiving appliance, believes that there are five things SMBs need to know about protecting corporate data:

1. Backup Often and Wisely: Market research firm Gartner claims that less than one percent of small businesses perform daily backups, and Enterprise Strategy Group analyst Peter Gerr says that backup is always at the top of business concerns — it either takes too long, or users can’t verify that it’s actually working.

Backing up everything on a daily basis can be extremely costly and time-consuming, so it is important to identify only the data that changes. For the average business, the percentage of data that changes daily is somewhere between two and five percent.

For example, a graphic arts agency that develops intricate print designs and continuously backs up large image files, page layouts and video work will quickly break the bank on storage hardware alone. By implementing a backup function that is able to sense changes reasonably well and back up just those files that have been altered, the business is protected at far less cost.

On the other hand, a specialty manufacturer of high-end audio products may only need to backup once a day, but will require it to be a bullet-proofed backup. While the rate of change is slow, each order is vitally important to the business.

2. Prioritize Data for Disaster Recovery: Another aspect to backing up data is making sure that the systems and data the business absolutely needs will be there in the case of a disaster. This means that companies need to look at their overall data picture and decide what is critical, what is important, and what they can do without.

Prioritize each system and its related data. Key systems for most small businesses include e-mail, telephones, databases, file servers and web servers. Typically, systems are prioritized into three categories that require differing levels of recovery time, from zero to days: Redundant (immediately), highly-available (minutes to hours) and backed up (four hours to days).

3. Archive Important Data for the Long Term: Next it is time to consider the corporate data archive. First, figure out how long to keep data. This can depend on various regulations especially for financial transactions. Companies dealing with international partners should consider the long-term needs of those partners in retrieving data.

Then decide what type of media will be used to store files. Optical disk, for example, can survive the electrical pulse that follows a nuclear strike. In general, it is simply important to choose a system and/or storage location that will achieve the corporate requirements.

It will also be necessary to identify a physical storage location for the data back up. For a small company, the realistic choice is that the data goes offsite and is stored in the safety of the business owner’s home. A medium-sized company would want to contract a professional data storage center, perhaps in a different geography. Remember though, data must be stored in a climate controlled and electrically neutral environment.

4. It’s Smart to Store Now for Future Protection: In Saudi Arabia there haven’t been regulations to require data storage. That will change as the financial system becomes more sophisticated and integrated with global institutions. Some Saudi companies caught up in lawsuits after the Sept. 11 tragedy needed as much information as they could find to prove their innocence in funding terrorism. And large enterprises in the Kingdom and beyond expect that their contractors and suppliers can provide all data regarding their corporate relationships.

Small companies that archive data from their inception find it easier to continue that data archiving as their operations grow. Taking the time to create a data archive at leisure ensures that an SMB can develop an ideal solution funded conveniently and managed efficiently.

5. How to Store Data Cost-Effectively and Easily: Most SMBs don’t have IT resources to set-up and manage a storage solution, so it is important they investigate the market before making an investment. Working with a value-added reseller that understands the business is often the best option. It is also important that the solution fit easily into the company’s existing system and is as manageable and turn-key as possible.

Over the long run, most mid-size businesses are better off buying an integrated solution. The upfront cost may be a bit more, but in the long run, the time, money and effort spent on a custom, or “home-grown” solution will be far greater. Not only will a professional be needed to install it, but they’ll need to help maintain and tune it as well.

Today, there are all-in-one storage appliances that include integrated disk for short-term backups and archiving; tape for long-term archiving; as well as the software and server components that help to prioritize and store data appropriately.

“The beauty of the integrated appliance,” remarked Schaefer, “is that you have all of the storage media components in a single box that’s easy to use. If anything goes wrong, you’ve got just one number to call — one throat to choke.”

So there you have it — the basics for protecting an SMB from the very real threat of catastrophic data loss. When researching solutions, make sure that your company works with a professional or value-added reseller who’s familiar with your type of business — as noted above, data protection requirements do vary significantly, depending on the industry. And remember, a business without data equates to no business at all.

* * *

(Comments to [email protected].)