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Protect Your Data Assets. IT threats and disasters: top concern, low spending priority

Data Recovery Article: eChannel Line Daily news – March 08, 2004

By Mark Cox

High profile events, like 9/11 or the Code Red or MyDoom viruses, typically result in an upsurge in interest by businesses at all levels in protecting their information systems and developing disaster recovery plans. When the calamity fades into the distance, the interest tends to fade somewhat as well. But a new Canadian survey done on behalf of Robert Half Management Resources finds that these concerns are top of mind to Canadian chief financial officers (CFOs). They just aren’t top of spending plans. Or anywhere near it.

In the survey, 32 per cent of CFOs said they believed their companies were most vulnerable in the area of security of information systems, followed by disaster recovery, at 20 per cent. But technology enhancement came in fourth on the list of where they plan to invest the most dollars in 2004 to ensure future business growth.

David King, Toronto-based regional manager of Robert Half Management Resources, agreed the data is certainly paradoxical, with this discrepancy between concern and spending plans.

“Still, even the 11% is very likely a significant increase from the a few years back,” King said.

These numbers are also relative; they measure the percentage who thought it was a number one priority, in relation to other priorities, not the number who are actually at risk.

How many companies fall into the at-risk category? About half, said Bill Margeson, CEO of CBL Data Recovery Technologies.

“Companies, especially large corporations, like to think they are protected, but there is a difference between perception and reality, and we see the reality every day,” Margeson said. Sometimes, they fail to update procedures, leaving themselves at risk. Sometimes the backup doesn´t work properly.

“About 40% of tape restorations are problematic”, Margeson said. “Because the backup fails a percentage of the time, companies are never covered like they think they are.”

The survey asked in which one of the following areas they felt their company is most vulnerable. Security of information systems at 32% and disaster preparedness/recovery at 20% were followed by protection of intellectual capital at 12%, detection of accounting fraud at 7%, competition 2%, and theft by company employees, at 1%.

“It´s surprising some of these concerns were so far down the list,” King said. “Like 2% for competition. Having market share gobbled up by a major competitor would seem significant.”

In response to the question of which of the following areas will their company invest most heavily in 2004 to ensure its future growth, their responses were: marketing 19%; facilities expansion 18%; training 18%; technology enhancement 11%; additional personnel 8%; acquisitions 7%.

The common thread is a faith that the market is likely going to be buying more in the near future,” King said. Marketing, facilities expansion, and training to deliver more to the marketplace.”

The same factor explained the relatively high concern weighting given to protection of intellectual capital at 12%, King said. “It´s an indication they think good staff will be in high demand as the market heats up.”