CXO Research: Organizations Can Lose $20 Million Each Year Due To Poor Data Management

The 2019 Veeam Cloud Data Management Report indicates that 73% of
organizations are failing to meet users’ demands for uninterrupted
access to applications and data; many companies are now looking to
embrace Cloud Data Management to better meet protection needs and
leverage the power of their data

BAAR, Switzerland–(BUSINESS WIRE)–#CDM–Over the past decade, the amount of data generated has exploded; data
growth and sprawl is so rampant that by 2025 we will generate more than
175 Zettabytes of data each year, up almost two thirds from 20181.
Organizations need to manage and protect this data no matter where it
resides, but according to the latest industry survey results released
today from Veeam® Software, the
leader in Backup solutions that enable Cloud Data Management™, 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. This highlights the devastating impact downtime can
have on lost revenue, productivity, and customer confidence. 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 more than 1,500
senior business and IT leaders from 13 countries and 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.

“We are living in a data-driven age, and organizations need to wake up
and take action to protect their data. 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 Executive Vice President (EVP) of
Sales & Marketing at 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 had 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. Forty-one
percent 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).

Timashev added: “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.”

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.

About the Report

Veeam commissioned Vanson Bourne, a leading technology sector research
partner, to develop and execute the survey for this report. Vanson
Bourne conducted a comprehensive online survey of 1,575 CXOs in 13
different countries, in Spring 2019. The countries surveyed include
Australia, Brazil, China, France, Germany, Italy, Japan, Mexico,
Netherlands, Russia, Middle East, UK and the US. For a full copy of the
2019 Veeam Cloud Data Management Report, click here: https://go.veeam.com/cloud-data-management-report-2019
.

Supporting Resources:

Global Infographic https://www.veeam.com/wp-cloud-data-management-infographic.html

2019 Veeam Cloud Data Management Report Executive Brief https://www.veeam.com/wp-cloud-data-management-report-summary.html

About Veeam Software

Veeam® is the leader in Backup solutions that enable Cloud Data
Management™. Veeam Availability Platform is the most complete back-up
solution for helping customers on the journey to achieving success in
the 5 Stages of Cloud Data Management. Veeam has 350,000+
customers worldwide, including 82% of the Fortune 500 and 66% of the
Global 2,000, with customer-satisfaction scores at 3.5x the industry
average. Veeam’s global ecosystem includes 61,000+ channel partners;
Cisco, HPE, NetApp and Lenovo as exclusive resellers; and 21,000+ cloud
and service providers. Headquartered in Baar, Switzerland, Veeam has
offices in more than 30 countries. To learn more, visit https://www.veeam.com
or follow Veeam on Twitter @veeam.

1 IDC Report (2018): The Digitization of the World From Edge
to Core

Contacts

Veeam Software Director, Global Public Relations
Heidi Monroe
Kroft, 614-339-8200 x8309

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