You know SMBs need a Business Continuity/Disaster Recovery solution. Business depends on it. The trick is to get them to understand that as well, to convince them that the lack of a robust, proven BCDR solution puts their company at risk – that an outage or disaster is literally that – a disaster!
The objective when selling BCDR is to prove the true and deep danger outages and disasters pose. These impacts are very much in the news, so you can use real world data points as testament.
Do not clobber them with dozens of facts, but pick a few choice ones for disasters and outages or downtime.
Did they know that?
- 30% of organizations do not have a disaster recovery plan.
- Of those, 90% will go out of business in the event of a disaster.
- 12% of companies could not recover data lost to an incident.
- 58% of businesses have no backup plan for data loss.
- Meanwhile, 68% of SMBs have no disaster recovery plan.
- That ransomware costs on average $500 per machine to get data back – if you can get it back at all.
- That data breaches cost from $36,000 for small merchants, up to a whopping $3.62 million for large enterprises.
- An hour of downtime costs $100,000 on average.
Do they also know that BCDR works, and that?
96% of organizations with an effective BCDR system and strategy survive ransomware.
The Perils and Cost of Downtime
Did your prospects know that IT downtime costs $5,600 per minute on average, and an hour of downtime is $300,000 on average, and as much as $540,000 for larger companies, according Gartner?
Information Technology Consulting Research (ITCR) found some shops have it even worse. In fact, 33% of those recently surveyed said an hour of downtime cost some $1.5 million.
Your clients can calculate their own labor cost of downtime. Simply take the number of employees, their fully loaded pay including all benefits, hours worked per week, and how many workers would be impacted by an outage. Then look at how much revenue is produced each hour. Add the lost revenue and the fully loaded cost of labor and you have your total loss from an hour of downtime.
Here is another way of looking at the factors and the equation that only examines revenue loss:
- Take gross annual revenue (GR)
- Total yearly hours of work (TH)
- Percentage impact of the outage (I)
- The number of downtime hours (H)
Use these values to perform this equation:
Revenue loss from an hour downtime = (GR/TH) x I x H
Some companies lose more than others, like those with a high level of transactions, such as online retailers, busy brick and mortar shops, banks and financial institutions.
The Cost of Data Breaches and Data Loss
Downtime costs money, but even worse is a breach that destroys data or ransomware that takes it away forever. In fact, data loss has increased some 400% since 2012.
Ransomware is particularly egregious, and its costs rise every year. By the end of 2019, ransomware will hit a business every 14 seconds.
According to the Unitrends The State of the Cloud and Data Protection Survey 2018 survey, “Data loss continues at an unacceptably high rate. Almost the exact percentage of respondents (30%) reported losing data across the three years of the survey. Whether the cause is the rise and continuing threat of ransomware, natural disasters, or internal threats, every year one-third of organizations report losing at least some of their data,” the report found.
A study from Cybersecurity Ventures finds that damages from ransomware cost $5 billion worldwide in 2017, and will more than double to $11.5 billion in 2019. One big factor – companies cannot recover the data encrypted by cybercriminals.
Ransomware costs money, an average of $133,000 for each attack. Worse, more than half of all organizations are hit by ransomware every year. In some cases, the cost of ransomware attacks reaches into the millions, often due to repeated attacks.
With a proper BCDR solution, extra copies of that data are always at the ready.
The Single Vendor Advantage
Some prospects have no effective backup, never mind BCDR. Meanwhile, larger prospects may have multiple backup vendors. However, using four or more backup providers leads to data loss, an average of 5.47 TB, argues service provider Dynamic Business Technologies. “The second highest average loss of data was 4.02 TB, resulting when no data protection solution was implemented. The lowest amount of data loss (0.83 TB) occurred when only one data protection solution vendor was selected,” the company said. Having you as the single vendor for your clients’ BCDR will dramatically reduce data loss.
Unitrends MSP addresses BCDR with the combination of a ransomware-proof Linux appliance and an always-available cloud layer of backup. You can get a demo here.
We also have the new Unitrends Done Deal program that offers MSPs a free paying customer to get their BCDR service rolling