Aliasgar Dohadwala, CEO of Visiontech Systems, is a visionary and serial entrepreneur with a knack for turning challenges into opportunities
Every business has faced—or will face—disruptions that challenge its survival. It could be a ransomware attack paralyzing operations, a natural disaster wiping out infrastructure or a simple human error corrupting vital data. Yet, disaster recovery (DR) is still considered a technical issue for many companies, discussed in IT rooms rather than boardrooms.
But let me ask you this: Would you insure your home only after it’s been damaged? Why treat your business any differently?
The Cost Of Downtime: It’s More Than Numbers
Downtime isn’t just an operational hiccup—it’s a business nightmare. According to industry data, the cost of downtime can reach $540,000 per hour. But it’s not just about the financial hit. The damage to your brand’s reputation and the loss of customer trust can be even harder to recover from.
A recent incident highlighting the importance of DR is the IT outage caused by a CrowdStrike update in July 2024. This faulty update affected 8.5 million devices globally, primarily in organizations using Microsoft Windows. Companies relying on Microsoft Azure, which also experienced an outage during the same period, faced complex challenges. The recovery process required multiple reboots or manual intervention, with businesses losing days of productivity. The financial toll was significant, with the top 500 U.S. companies incurring estimated losses of nearly $5.4 billion.
This incident underscores how even a single point of failure in IT systems can disrupt operations at a massive scale. It highlights the need for robust DR strategies, such as implementing automated failovers, maintaining multiple backups across regions and conducting regular recovery drills to minimize downtime during such crises.
Why Disaster Recovery Isn’t Just IT’s Problem
DR is no longer a task for your IT team to handle quietly in the background. It’s a business enabler that protects your operations, revenue and reputation.
Here’s why DR deserves a place in your business strategy:
• Revenue At Stake: Research shows that 60% of businesses shut down within six months of losing critical data.
• Regulatory Risks: Compliance standards like GDPR and HIPAA mandate stringent recovery protocols. Noncompliance can result in hefty fines.
• Customer Expectations: In today’s always-on digital economy, customers expect resilience. Downtime often translates to a loss of confidence.
• Reputation Risks: Trust is hard to earn but easy to lose. For instance, during the Facebook outage in 2021, the company lost about $65 million and faced a significant dip in user trust.
Myths That Keep Disaster Recovery In The Shadows
• “We’re too small for DR.” Disasters don’t discriminate. Cybercriminals often target small businesses because of perceived weaker defenses.
• “It’s too expensive.” Cloud-based DR solutions like Microsoft Azure, AWS and Acronis have made recovery affordable and scalable for businesses of all sizes.
• “We’re safe.” Complacency is a trap. Even the most secure systems can fail without a tested recovery plan.
What A Strong Disaster Recovery Strategy Looks Like
Having worked closely with businesses navigating crises, I’ve seen how a robust disaster recovery plan can transform panic into confidence. Here are the essentials:
1. Elevate disaster recovery to the C-suite.
To successfully address DR, it must be embedded into the company’s business continuity strategy. Encourage executives to take charge of annual DR audits and planning sessions. Involving the C-suite also promotes the message that DR is a priority across the organization, from policymaking to daily operations.
2. Leverage disaster recovery as a service (DRaaS).
According to Fortune Business Insights, the adoption of DRaaS is growing at an impressive 22.4% CAGR as more organizations recognize its scalability and cost-effectiveness. DRaaS offers both security and peace of mind for businesses, making it a key solution to overcome traditional DR challenges.
3. Invest in automation and AI.
AI and automation are game changers for disaster recovery. With AI-powered DR solutions, organizations can continuously monitor system health, analyze patterns and act proactively to prevent downtime.
4. Engage in regular testing and simulations.
Organizations that test their DR plans consistently recover faster than those that don’t. Running mock disaster scenarios helps identify gaps and weaknesses, ensuring a faster and more effective response when real incidents occur. Here’s a checklist to run a mock disaster scenario:
• Verify backup and recovery processes.
• Test failover systems for critical applications.
• Simulate different types of incidents, from ransomware to natural disasters.
• Review and update communication protocols.
• Assess recovery times to ensure SLA compliance.
5. Partner with trusted providers.
Strategic collaboration with trusted backup providers like Microsoft Azure, AWS and Acronis can enhance disaster recovery capabilities by providing scalable, reliable and cost-effective solutions. These providers have infrastructure built to withstand disruptions, reduce downtime and help ensure business continuity.
Turning Crisis Into Opportunity
One of my most rewarding experiences was helping a food product supplier recover from a ransomware attack. Their recovery plan, which we had built months earlier, ensured their systems were back online within hours. Not only did they avoid significant downtime, but they also used the incident to reinforce trust with their clients. This proactive approach showcased resilience and commitment, turning a potential disaster into a moment of customer reassurance.
The Bigger Picture: Resilience As A Competitive Edge
Disaster recovery is no longer just about surviving an incident; it’s about thriving in its aftermath. Companies with strong DR strategies outperform competitors because they minimize disruption and reassure stakeholders.
In an age where data drives every decision, your ability to recover quickly is a competitive advantage. It tells your customers and employees: “We’re prepared. You can count on us.”
Final Thoughts: Are You Prepared?
Disasters may be inevitable, but unpreparedness is a choice. Investing in disaster recovery is investing in your business’s future. Whether it’s protecting sensitive data, maintaining customer trust or avoiding costly downtime, a robust DR plan helps ensure your business is ready for the unexpected.
The next time disaster strikes, will your business recover with confidence—or scramble in regret? The choice is yours.
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