Organizations lose $20 million yearly due to poor data management: study

Baar, Switzerland: With the exponential and rapid growth of data over the past decade, management of data has become a crucial factor for organizations today and this also involves protection of data, no matter where it resides.

By 2025, more than 175 zettabytes of data will be generated each year and that is almost two thirds from 2018, as per IDC Report (2018): The Digitization of the World From Edge to Core.

However, organizations do admit that they struggle with data management and more than often it results into financial losses that runs into millions.

In fact, 73% of organizations admit to not being able to meet users’ demands for uninterrupted access to data and services, costing the typical company $20 million a year, reveals Veeam’s latest commissioned study. It reflects the devastating impact downtime can have on lost revenue, productivity and customer confidence.

(Source: 2019 Veeam Cloud Data Management Report)

However, this year’s study shows that organizations are acting to combat this, with nearly three-quarters (72%) looking to embrace Cloud Data Management, often by exploiting hybrid cloud capabilities, to ensure success and drive more value from their data.

The 2019 Veeam Cloud Data Management Report surveyed over 1,500 senior business and IT leaders from 13 countries including Australia, Brazil, China, France, Germany, Italy, Japan, Mexico, Netherlands, Russia, Middle East, UK and the US.

The study found that respondents are aware of the importance of data management to their business’ success, pointing to greater productivity today, and the potential to drive business transformation in the future.

“Businesses must manage their data in a way that always delivers availability and leverage its value to drive performance. This is no longer a luxury, but a business necessity. There is a significant opportunity and competitive advantage for those who effectively manage their data. Ask yourself, are you confident that your business data will always be available? If you are unsure, it’s time to act, and our study shows that many are not acting fast enough,” said Ratmir Timashev, Co-Founder and EVP – Sales & Marketing, Veeam.

Organizations are looking to embrace the power of technologies such as the cloud, or hybrid cloud, Big Data, Artificial Intelligence (AI), and the Internet of Things (IoT) to drive business success and will each invest on average $41 million in 2019 on such transformational technologies.

Almost half of respondents admit that data protection is imperative to leverage these investments. Alarmingly, only 37% of businesses are very confident in their current backup solutions, with the majority (73%) admitting that they cannot meet user demands. This inhibits the adoption of tools and processes that can drive business advantage, but leaders recognize work needs to be done; more than half of those surveyed are looking to deploy Intelligent Data Management and multi-cloud solutions across the business to address this failing.

There are big benefits to be made from the deployment of digital initiatives as organizations on average attribute $124 million additional revenue [per company] to these annually. However, these findings shine a light on the global disparity in digital adoption. Some of the world’s largest economies are at risk of having to play catch-up when it comes to their investment in digital innovation.

41% of Japanese businesses and 48% of Brazilian businesses described their data management as mature, compared to just over a quarter in France and Germany, and just 11% in the UK. Crucially, change does not appear to be on the horizon, with Japanese and Brazilian organizations intending to invest on average $105 million and $73 million respectively in Cloud Data Management in the next 12 months, markedly larger than the average organizational investment expected in the UK ($14 million), China ($17 million) and US ($38 million).

“We’re seeing a global digital arms race develop today, with some of the world’s most advanced economies at risk of being left behind when it comes to their digital adoption. It’s essential that organizations get the right digital foundation in place to intelligently manage their data and safeguard their future. To achieve this, businesses must be united internally, with IT and the business working collaboratively and addressing cultural and skills challenges,” added Timashev.

Journey to a more intelligent business
The 2019 Veeam Cloud Data Management Report found that organizations are on a journey to become a more intelligent business, meaning they are leveraging technologies such as Cloud Data Management and AI to create a real-time view of the collective business and the ability to act intelligently on that insight. Amongst the businesses on this journey, the study highlights four common components globally:

  1. Cloud: Cloud Data Management is a key component of delivering Intelligent Data Management. Three-quarters of companies report using Software-as-a-Service (SaaS) platforms. Many are utilizing the cloud for their backup and recovery services, with 51% using Backup-as-a-Service (BaaS) and 44% using disaster recovery-as-a-service (DRaaS). It is evident that leaders are recognizing the advantages of a multi-cloud and hybrid-based approach, citing cost, reliability, flexibility and data security of the cloud as their main reasons for choosing it.
  2. Capabilities: Organizations must enhance their capabilities, to ensure employees can draw on data insights and use new technologies as they are deployed, with 9 out of 10 businesses viewing upskilling employees’ digital skills as vital to their digital success.
  3. Culture: Creating a culture that is adaptable and receptive to new technologies so that people can evolve with the organization is essential, with more than two-thirds of respondents believing that company culture needs to become more open and accepting to digital technologies.
  4. Confidence: Organizations must create a sense of confidence in the business’ digital capabilities, built on a strong data foundation. Presently, only a quarter of respondents report total confidence in their capability to meet their digital challenges.

What is clear from the 2019 Veeam Cloud Data Management Report is that the time for action is now. This starts with a strong digital foundation, which ensures that data is backed up and always available. With this in place, organizations can confidently deploy new digital initiatives, leveraging the business value and competitive advantage for today and in to the future, and harness the potential of Cloud Data Management.

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