Hurricane Katrina Highlights Importance of Backup and Recovery Systems for Companies

Strategic Insights -

As the 40 employees of PricewaterhouseCoopers' New Orleans office now scattered across four states come to terms with the devastating aftermath of Hurricane Katrina, the company's managing director Kathy Nieland's quick thinking and presence of mind have saved 95% of the office's data, a feat made possible by a high-quality backup system. The storm is a stark reminder to companies of all sizes that disasters like hackers, viruses, and natural catastrophes can wipe out corporate data, prompting many to reconsider their backup and recovery systems.

Key Takeaways:

  • PricewaterhouseCoopers' backup system, which included storing work on distant computer networks and backing up important files to computers in Tampa before the storm, was instrumental in saving 95% of the office's data.
  • Many companies, including tech giants Hewlett-Packard and Sun Microsystems, are struggling to reach customers and employees in the affected areas, highlighting the importance of having a disaster-recovery plan in place.
  • Companies that specialize in recovery, such as IBM and MessageOne, are reporting increased activity as they work to rebuild computer networks and restore data.
  • About 25% of the New Orleans-area customers of backup company LiveVault are still unreachable, but the company is helping the rest come back online.
  • The influx of computer viruses and hacker attacks in recent years has prompted firms to strengthen backup systems.
  • While installing a backup system can be pricey and difficult, tech firms are responding with products designed to make it easier, such as IBM's backup software and Microsoft's Data Protection Manager.
  • Intel has demonstrated a PC that can run off a car battery if the power goes out, with plans to work with PC makers to bring it to market by next year.

Statistics:

  • 95% of PricewaterhouseCoopers' data from the New Orleans office has been saved.
  • 25% of the New Orleans-area customers of backup company LiveVault are still unreachable.
  • 2,000 customers of Sun Microsystems are in the affected areas.
  • 100 clients of IBM's emergency backup services in the gulf are currently rebuilding their computer networks.
  • 50 customers in the New Orleans area, including Marriott and Adams & Reese, are being served by MessageOne's e-mail backup and emergency paging services.
  • Half of 133 large businesses surveyed by Gartner this year said they're increasing their tech security budgets.

Sources:

  • Michelle Kessler, "Katrina damages data systems; backup is key to recovery", The Tennessean, 6 September 2005
  • Clint Roswell, IBM spokesman
  • Michael Rosenfelt, executive vice president of MessageOne
  • Bob Cramer, CEO of LiveVault
  • Gartner, "Tech Security Budgets Rise Amid Fears of More Katrina-Like Disasters", 29 August 2005