Calculating the true cost of data loss

The loss of corporate Data is the one thing that all companies fear. Sure losing a single piece of work isn’t necessarily the end of the world for your company but all of your data? Well that’s going to be pretty detrimental to your business, not to mention costly.

In the world of cloud computing and big data, you would think that the majority of companies would be taking action to prevent data loss, however according to the latest figures; 1.7 trillion (yes trillion) dollars worth of data was lost in 2014 alone.

Are you doing enough to prevent data loss? If the answer is no, you could end up facing some pretty hefty costs.

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There are many forms of data loss

Before we look at some of the true costs of data loss, we thought it was important to outline what exactly data loss is. Data loss can be both intentional and unintentional.

Unintentional data loss comes in the form of staff accidentally deleting something important or a workplace disaster destroying your hardware. Intentional data loss refers to crime such as theft and cyber crime acts (malware infections etc.) where your data is deliberately stolen or deleted from your system.

It is therefore important to protect your data against all forms of loss or you could end up costing yourself a significant amount of money.


The first cost of data loss you need to consider is the cost of disruption. Without its data, your business will not be able to operate properly, meaning a significant amount of time and money will be wasted. Remember that you’ll still have to pay your staff to be at work, whether they can actually be productive or not.


Another important cost you need to consider is the loss of business reputation. Although difficult to measure, the cost of losing your reputation should not be underestimated. If you fail to meet customers’ requirements through data loss or their information is stolen from your database, it’s unlikely that they will want to do business with you in the future.

It’s not only loss of customers that you need to consider but also the loss of new business. You may find it difficult to find partners and suppliers that are willing to work with you, as they will see you as being unprofessional, unsecure and unreliable.

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Legal costs

If you have lost customer or employee data through a breach in your security, it is likely that at some point, you are going to face legal action. Principle 7 of the Data Protection Act requires employers to take appropriate technical and organisational measures against the unauthorised or unlawful processing of personal data to prevent accidental loss, damage or destruction of personal data.

If you have not taken the appropriate measures to secure your customers or employees’ confidential data, they may take legal action against you, which can be extremely costly in terms of time, fees and compensation.


Data loss is not something you can afford to ignore. It’s a huge problem in the business world and something you need to tackle proactively. If you don’t have the right IT solutions in place or the right data policies in your workplace, there is a high chance of you losing your data and in turn, a huge amount of money.

Many businesses do not recover after losing their data through disruption, loss of reputation and legal implications. Don’t risk everything when data storage and security solutions are so easy to implement.

For more information on how Zenzero provide security solutions (to stop your data being stolen) and back up platforms (to keep an extra copy of your data) to help protect your business data, contact the Zenzero team via e-mail at or by calling 0333 3209 900.