The Cost of Ignoring Disaster Recovery in Cloud Migration

Nishant Patil 25th May 2023 - 4 mins read

What is disaster recovery?

Disaster recovery is when an organization can quickly and efficiently respond to and recover from a disaster that disrupts normal business operations. Disaster recovery techniques allow the organization to resume the usage of vital systems and IT infrastructure as quickly as possible following a calamity.

Why is disaster recovery significant?

Depending on the circumstances, disasters can cause a wide range of damage with varied degrees of severity. A hurricane or tornado might completely demolish a manufacturing facility, data center, or office. A minor network outage may result in dissatisfied clients and possibly financial loss for an e-commerce system.

The monetary costs might be substantial. According to the Uptime Institute's Annual Outage Analysis 2021 report, 40% of company outages or service interruptions cost between $100,000 and $1 million, with around 17% costing more than $1 million. A data breach may be costly; the average cost in 2020 was $3.86 million, according to IBM and the Ponemon Institute's 2020 Cost of a Data Breach Report.

Benefits of having a Recover Plan and data backup

1. Avoid Disruptions and Keep Your Information Safe
Because of the growing threat that cyber-attacks pose, data loss can result in significant income loss and disruption to your business. To ensure you can continue to function even in a disaster, it's essential to have data backup and recovery plans in place as a preventative measure.

2. Less Downtime Means You Won’t Take a Hit
Data loss, whether caused by a cyber attack or a technological breakdown, can disrupt your operations and result in revenue loss. A data backup strategy protects your data and gets you back up and running quickly.

3. Keep Your Reputation Intact
Downtime is more than simply an annoyance for your organization; it may lead to dissatisfied consumers and harm your reputation. A backup and recovery plan will result in minimal downtime, allowing you to preserve your reputation and satisfy your customers.

4. Avoid Losing Business to the Competition
The longer your company is out of commission due to lost data, the more likely customers will go elsewhere for goods and services. You'll be able to keep serving your consumers if you can quickly regain the information you need.

IT disruptions are costly for businesses due to their dependence on data, causing productivity loss, idle workers, and revenue losses.

Here’s what the numbers say…

1. 54% of companies have experienced prolonged downtime

2. 40%-60% of small businesses never reopen after a disaster

3. 90% fail if they don't reopen quickly enough

4. Downtime costs between $10K to $5M per hour

5. 28% of companies have experienced data loss recently

6. 19% of businesses have had a recent security breach

7. 43% of data breaches involved small businesses

8. 34% of breaches involved ‘internal actors.'

9. 45% of companies reported downtime from hardware failure

10. A natural disaster causes 5% of disruptions

11. 200% increase in downtime costs from ransomware

12. 93% of companies went bankrupt after prolonged data loss

13. 70% of small companies say that any data-loss event could hurt the business

14. 43% of companies experiencing significant data loss go out of business if they have no disaster recovery plan

15. 96% of companies with a disaster recovery solution in place fully recover operations


Don’t gamble with your brand - A disaster recovery strategy is about more than just safeguarding data, procedures, and applications. It is about keeping client trust, avoiding productivity losses, and missing business possibilities. It is all about preserving your brand.

Customers now demand digital perfection. IT failure can cause reputational harm that exceeds the technical recovery costs. Customer acquisition is costly, and re-acquisition is nearly impossible. Consider how you would react if a company you utilized lost sensitive information or failed to supply key services at a critical time.

Thanks to remote server capabilities, businesses can now operate online with complete redundancy for all their processes, data, and applications. Using this opportunity to maintain a web presence and backup system is essential. Neglecting a disaster recovery plan is risky and could harm your brand, business, and reputation. It's not worth risking it all to save a few dollars. 


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