One Year after Superstorm Sandy, Many Small Businesses Aren't Prepared for the Next Disaster

New Survey from Carbonite Finds Downtime and Losses After a Disaster Can Cripple a Business

PR Newswire

BOSTON, Oct. 8, 2013 /PRNewswire/ -- Nearly one year after Superstorm Sandy, small businesses are still at risk for downtime and data loss following a natural disaster, according to new survey results from Carbonite (CARB), a leading provider of cloud solutions that keep small businesses and home offices running smoothly. The survey, conducted by Wakefield Research, found that more than 40 percent of small businesses in the tri-state area hit by Superstorm Sandy last October (NY, NJ, and CT) think it's likely they will be impacted by a natural disaster in the next year, and that only 22 percent feel they are very prepared.

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Data loss can be devastating to small businesses
Downtime and data loss caused by natural disasters can be detrimental to any small business. On average, survey respondents said it would take 16 days to recreate or recover their files – and nearly a third said they would never be able to recover or recreate all of their important business data if it was lost. In addition to lost time, data loss can hit a small business where it hurts – their bank account.  Carbonite found that on average, small businesses would lose $2,976 per day if they were unable to operate. This means the average small business could lose a devastating $47,616 over the 16 days it takes them to recover their data!

Many small businesses aren't prepared for disaster
More than two-thirds of small businesses have not created a disaster plan, and likely aren't prepared for the realities of what could happen to their business in a disaster. For example, 62 percent of small businesses think that any damage caused by a natural disaster would be covered by insurance − when in fact, data loss can cost tens of thousands of dollars and isn't covered by traditional insurance. And even though thousands of small businesses were displaced following Superstorm Sandy, nearly half of small business owners don't have an alternative place they could work from if their work place becomes a disaster zone.

The most prepared small businesses have a disaster plan for data
Nearly 75 percent of small  businesses back up data electronically to safeguard their files against potential disasters, but the majority (63 percent) use on-site methods such as external hard drives, NAS devices and servers that are vulnerable to flood, fire and other disasters. Only 39 percent say they are using the cloud to protect their business files offsite and out of harm's way.  And while the majority of small businesses have some kind of data backup in place, more than two-thirds aren't backing up all of their business data.

Small businesses without backup plans are risking it all
With all that goes into running a small business – from billing to promotion to managing employees – it's easy for data backup to slip down on the priority list. But the common reasons small businesses aren't backing up can cost them in the long run:

  • "The files I need are on my computer." More than a third of businesses don't back up because they have all the files they need locally. But as thousands of small businesses learned a year ago, a disaster can unexpectedly wipe out your business, taking your computers and data with it.
  • "Backups take too long." More than 20 percent don't protect their files because backups take too long to complete. But when the average business takes 16 days to recover data after a disaster, the 10 minutes it takes to set up an online backup solution is worth it.
  • "Backups costs too much." Twenty-one percent of businesses who aren't backing up blame the cost. Consider this: a one-year subscription of Carbonite Business starts at $229.99 per year, but the average small business will lose $2,976 per day if they can't operate.

One year later, Superstorm Sandy is still on the minds of small business owners. While many have taken steps to protect their business against the next disaster that will hit the region, some are still putting their businesses – and livelihood – at risk. For those who consider their data to be at the heart of their organization, backing up data to the cloud can mean the difference between an inconvenience and the end of business altogether.

For more information about protecting business files with Carbonite Business and BusinessPremier, or to learn about the industry-leading speed of Carbonite Enhanced Server Backup for Windows servers, databases and live applications, please visit www.carbonite.com or call Carbonite's Business Team at 855-227-2249.

Survey Methodology
The Carbonite Survey was conducted by Wakefield Research (www.wakefieldresearch.com) among 100 small business owners (SBOs) and decision-makers at companies with fewer than 100 employees in each of the following states: New York, New Jersey, and Connecticut, between September 17th and September 27th, 2013, using an email invitation and an online survey.

About Carbonite
Carbonite (CARB) keeps small businesses and home offices running smoothly. Carbonite offers a comprehensive suite of affordable services for data protection, recovery and anywhere, anytime access. More than 1.5 million customers, including 50,000 small businesses, trust Carbonite's secure, easy-to-use cloud backup solutions and award-winning U.S.-based customer support. For more information, please visit Carbonite.com, connect with us on Twitter @carbonite and @carbonitebiz, or visit our Facebook page.

Media Contact
Megan Wittenberger
Carbonite
mwittenberger@carbonite.com 
617-421-5687

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