A modern business’s success largely depends on its ability to use data to drive better, smarter decisions. Some businesses have richly benefited from this trend. Uber, for example, uses the location data of its users to provide them with the most efficient pick-up locations and times. Airbnb has used customer reviews combined with machine learning algorithms to create personalized search results based on each individual user’s preferences.
Based on this trend, it’s easy to see why the costs associated with data storage and management are quickly becoming a crucial point of consideration for any modern business. Right now, businesses spend more money on IT than ever before — and much of that goes into storing and managing their data.
Data Storage and Management Costs
There are two primary ways that businesses spend money on data storage and management.
The first is the cost of the servers used to keep all this information safe, away from prying eyes. For obvious security reasons, they are typically located in secure locations, with 24/7 monitoring services guarding them at all times against any breach or attack.
Second is the cost of hiring experts to make sure everything runs smoothly. These experts monitor server health, look for vulnerabilities, roll out new updates, etc. For example, if you use SQL databases, you’ll want to hire an SQL Server database emergency expert to deal with any emergencies as they arise.
Data Protection Costs
On top of this, you have protection costs related to your customers’ privacy and protection. If a breach occurs in your database and you haven’t taken the necessary precautions to protect them, they’ll lose their trust in you, and it could have serious financial consequences.
That is why every business should invest in data protection services. Here are some of the most important reasons for doing so.
#1: Downtime Can Cost You a Lot of Money
One of the biggest costs associated with having a breach or an incident is downtime. If your customers’ data gets stolen, and they decide to take their business elsewhere, this can lead to a significant drop in sales and revenue — especially if it happens at the height of your busy season. If they decide not to buy from you again, this may cost you more than just lost revenue: there’s also the loss of future business and referrals.
Losing customers due to a security incident means losing out on potential new customers as well. This is one of the most important reasons why companies should invest in data protection services.
#2: Outdated Software Is A Security Risk
Another problem with not investing in the necessary protection services is outdated software. Businesses typically keep their servers safe by regularly updating them with the latest security patches. However, if your database is running on a server that’s been out of commission for a long time, you could be exposing yourself to a huge security risk
#3: Hackers Are Getting More Sophisticated
Today’s hackers are extremely sophisticated, and they’ve become increasingly skilled at carrying out an attack. If you’re not keeping your database safe with the latest protection software, you might find yourself in a dangerous situation sooner or later
#4: Your Competitors Could Attack You
Your competitors might also be tempted to try to attack your database. Even if they don’t end up having much success, they can still cause some damage that’ll be costly both in terms of money and customer trust.
Tips on How to Reduce the Cost of Data Storage and Management
To control the costs associated with data storage and management, you should:
- Use cloud databases instead of physical servers. This way, you’ll only pay for what you use, and there will be nothing lying around that may lead to a security issue.
- Always keep your software up to date. Just as important as updating your server is the software it uses. Tools like SQL Server need to be updated regularly to avoid potential attacks from hackers.
- Invest in data protection services. Even if your business is small, you need to ensure all your data is safe and sound. Make sure to hire an expert who can deal with any incident that may occur.
Data protection costs are an important consideration for any business. Whether you’re storing data on servers in your office, or a cloud-based system, the cost of security is always going to be something that needs careful thought and planning.
The good news is there’s plenty we can do to help control these costs while also protecting our customers’ privacy and giving them peace of mind.