Digital information is costing businesses of all sizes a bundle, and poorly protected data is a major challenge.
From confidential customer information, to
intellectual property, to financial transactions, organizations possess massive
amounts of information that must be collected, retained and analyzed to keep
the business competitive, but it comes at a huge cost, according to security
specialist Symantecs "State of Information Survey." Digital
information costs businesses worldwide $1.1 trillion annually, the report
found, but also makes up 49 percent of an organizations total value.
The total size of information stored today by
all businesses is 2.2 zettabytesa zettabyte is a unit of information or
computer storage equal to one sextillion (one long-scale trilliard) bytes.
Small and midsize businesses (SMBs) on average have 563 terabytes of data, and
the information load is expected to grow 178 percent for SMBs over the next
year. That figure compares with 100,000TB for the average enterprise, where
information loads are expected to balloon 67 percent over the next year.
A typical 50-employee small business spends
$183,500 on information management, whereas a typical large enterprise with
2,500 employees would spend $8.2 million, and the yearly cost per employee for
SMBs is a lot higher at $3,670, versus $3,297 for enterprise. Overall, enterprises
spend $38 million annually on information, while SMBs spend $332,000. Despite
the reams of data and substantial costs, the survey also suggests businesses
are struggling to protect this information.
According to the report, in the last year, 69
percent of businesses experienced some form of information loss for a variety
of reasons, such as human error, hardware failure, security breach, or lost and
stolen devices. In addition, 69 percent have had confidential information
exposed outside the company, and 31 percent have experienced compliance
failures related to information. Another major challenge identified by 30
percent of businesses is information sprawlthe overwhelming growth of
information that is unorganized, difficult to access and often duplicated
elsewhere. Data loss can have a major impact on businesses, including lost
customers, which was cited by 49 percent of survey respondents. Other data loss
impact included damage to reputation and brand (47 percent), decreased revenue
(41 percent), increased expenses (39 percent) and a tumbling stock price (20
percent).
The vast amount of information that
organizations produce today can help them better serve their customers and
increase productivity. However, the same information can also become a major
liability if it is not properly protected. Companies that effectively use their
information will have a major competitive advantage over those who cannot, and
in some cases, it can be the difference between success and failure, Francis
deSouza, group president of enterprise products and services at Symantec, said
in a prepared statement. With its increasing value and rising cost, successful
companies will find ways to more effectively protect their information and
unleash the productivity it can bring.
Nathan Eddy is Associate Editor, Midmarket, at eWEEK.com. Before joining eWEEK.com, Nate was a writer with ChannelWeb and he served as an editor at FierceMarkets. He is a graduate of the Medill School of Journalism at Northwestern University.
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