No later than March of 2020, hackers acting on behalf of a foreign entity, broke into a range of key US government networks, including the Treasury and Commerce Departments, and had free access to their email systems. Facebook (2019) had an accidental web/internet exposure of 419,000,000 records compromising name, account ID, phone number, and country. In 2017, the credit file agency Equifax was hacked and resulted in 146.6 million Americans having their personal data exposed. The cost to these large organizations was astronomical.

Although data breaches of large companies are broadcast over headline news, small to medium sized ones might get the impression that a breach may only happen to big companies.  However, 43% of cyberattacks are aimed at small businesses and only 14% are prepared to defend themselves, according to Accenture.  And when those result in a data breach, smaller companies end up paying disproportionately larger costs.

With both the financial security and future of your business on the line, it’s crucial for companies of all sizes to have Managed Services Providers in Plano like TeamLogic IT in place to monitor suspicious network activity.  Here’s a quick look at 4 of the most significant ramifications of data breaches. 

IS IT WORTH LOSING OPERATIONAL FUNCTIONING?

From the moment your data is compromised, to the entire investigation and disaster recovery process, the effects of a data breach significantly impact business operations. Depending on the severity, data breaches can result in a complete loss of important data, which requires companies to spend long periods time recouping.

The most common business continuity plan of action in these situations is to totally shut down operations until a solution is found, permitting ample time for an IT support company to focus on finding the origin of the breach. However, the longer operations are shut down, the more likely customers will leave and there will be a considerable financial loss.

IS IT WORTH LOSING REVENUE?

Revenue loss occurs when a company makes less from operations than expected due to external and internal factors.  For many businesses, the most fateful consequence is a data breach to their computer and networking services which can incur significant financial loss.

Depending on the nature of the breach, there are various financial problems that can result. Companies that suffer breaches may have to grapple with costs incurred from changes in the market value, heightened security costs, loss of customers, restrictions on business, regulatory fees, insurance premium hikes, legal fees, advertising, and increased public relations that can all lead to significant revenue loss.

IS IT WORTH LOSING INTELLECTUAL PROPERTY?

Intellectual property (IP) refers to the ownership of an idea or design by the person who came up with it.  In fact, it gives a person certain exclusive rights to a distinct type of creative design, meaning that nobody else can copy or reuse that creation without the owner’s permission. 

When a business has been hacked through poor information security and/or theft, the loss of intellectual property can be catastrophic.  Companies have intellectual property in the form of trade secrets, customer information, proprietary products, target designs, strategies, and blueprints.  Losing intellectual property can not only impact revenue, but also the competitiveness of your business.

IS IT WORTH LOSING YOUR COMPANY’S REPUTATION?

News travels faster than ever because of our global interconnectedness. The damage of a security breach to a company’s reputation and brand can be potentially devastating.  Even those who have not heard of your company will likely hear about the breach within days.  

Following a breach, it is crucial that management handles the crisis properly and expeditiously with an IT support company.  Otherwise, long-term consequences of negative media attention, loss of confidence, associated identity theft, expensive litigation, unhappy customers and employees, trust issues, and potential lead hesitancy will place a dark veil over your brand and reputation.  For who would like to do business with a company having shoddy data security.

TeamLogic IT was formed to become the go-to IT team for small and medium-sized businesses. We offer fast responses to IT challenges — but more importantly, we act as an IT consulting adviser to our customers, helping them take proactive approaches to their technology so that their businesses become more secure, efficient and profitable.

Plano and Dallas Managed IT services by TeamLogic IT Plano helps create a steady and predictable revenue source for franchise owners, as well as provide client peace of mind through onsite and remote monitoring of computers and networks; data backup and disaster recovery, IT solutions; and cybersecurity protections.  Dollars spent here reduce the dollars you must spend if a breach occurs, in hard costs, lost time and damaged reputation. 

Managed Service Providers are worth the cost.  If you’re looking for solutions, and IT services in Dallas, TX as well as Plano, feel free to contact TeamLogic IT Plano at teamlogicitplanotx.com or call us at (469.573.3743).

FREQUENTLY ASKED QUESTIONS ABOUT MANAGED SERVICE PROVIDERS?

WHAT IS AN IT MANAGED SERVICE PROVIDER?

A managed service provider (MSP) delivers services, such as network, application, infrastructure and security, via ongoing and regular support and active administration on customers’ premises, in their MSP’s data center (hosting), or in a third-party data center.

WHY DO YOU NEED A MANAGED SERVICE PROVIDER?

Working with a managed IT service provider benefits companies financially. It’s a considerable cost saving. It helps control outgoing expenses and increases return on investment. Typically, an IT budget consists of many things like IT labor, maintenance costs, software and network infrastructure and hardware costs.

WHAT TO LOOK FOR IN A MANAGED SERVICES PROVIDER?

Some of the top things to look for in a managed services provider include availability, fast service, response time, disaster recovery planning, on-site maintenance and support, daily backups, cloud services, security testing and monitoring.

By on February 25, 2021   /   Technology