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The True Cost and Causes of a Data Center Breach: Part 2

Posted on September 24, 2018 by Gento

What Is The Cost Of Data Breaches? 

IBM Security and Ponemon Institute recently released the 2017 Cost of Data Breach Study: United States. Within this report, it was discovered that the average cost per lost or stolen record that contained vital business data, sensitive personal records, or confidential information had jumped from $221 USD to $225 USD. The cost per record is broken down into $146 USD for indirect costs, including but not limited to a high churn rate post data breach. The direct costs, including the monies needed to resolve the data breach, are $79 USD per record.

The increase in the cost per record subsequently resulted in an increase of the total organizational cost from $7.01 Million USD to $7.35 Million USD. The latter figure represents an all time high over the previous 2011 average of $7.24 Million USD. This increase occurred across industries; however, further scrutiny of the data reveals that certain industries are not only at a substantially higher risk for theft, but also suffer from higher overarching data breach costs.

How Were North American Industries Impacted By Data Breaches? 

While organizations across industries suffered from an increase in the data breach costs, there are certain sectors that experienced substantial increases. Of the 572 organizations studied over the past years, the data reveals similar patterns year-over-year. These patterns show that heavily regulated industries often suffer the highest per capita data breach costs. These industries include: health care, financial, industrial, services, and life science. As seen below, all of the aforementioned industries have a higher cost per record than the average $225 USD. 

•    Health -- $380 USD per record.
•    Financial -- $336 USD per record.
•    Services -- $274 USD per record.
•    Life Science -- $264 USD per record.
•    Industrial -- $259 USD per record. 

In contrast to the above industries, there are certain sectors that have below average per capita costs. These North American industries include the public sector (i.e. government entities), research, and entertainment companies. The reasons for the discrepancy in industry findings lies in a) the type of information stolen, b) the regulations governing post data breach actions whereby tightly regulated industries have inherently higher costs, and c) the churn rates associated with industries post data breach.
Industries with a higher churn rate post data breach experienced a dramatic increase in total costs. These abnormally high churn rates were once again associated with tightly regulated industries. However, when compared to the aforementioned per record cost, it is important to note that the industries appear in a different order with the financial sector overtaking the top spot from health care.

•    Financial -- 7.1 percent churn rate.
•    Life Science -- 5.7 percent churn rate.
•    Health -- 5.5 percent churn rate. 
•    Technology -- 5.1 percent churn rate.
•    Services -- 4.7 percent churn rate.

From these two data sets, the conclusion can be made that not only will tightly regulated industries experience higher than average data breach costs, but those industries with high churn rates will also spend additional funds on data breaches. The reason for this increase in costs could be due to the type of information that is stolen during a data breach. For example, customers are more likely to lose faith and subsequently abandon financial institutions who fail to protect their sensitive financial (and personal) data from theft. Additionally, records containing sensitive or confidential information, such as financial or medical records, fetch a higher price on the black market, which could be another reason that organizations within these industries suffer from higher than average data breach costs. Regardless, one thing that is certain is that industries with the highest churn rates must focus on preserving their reputation and reemphasizing customer retention if they want to greatly reduce the costs associated with a data breach. 

The Bottom Line: Protect Your Valuable Data Assets 

Reducing the negative brand and financial impact of a data breach is greatly improved with the right response. This response can and should include enhancing IT security to protect customer and business assets. However, before a data breach even occurs, organizations across industries should take the steps needed to secure their valuable data assets. These steps include implementing a disaster recovery plan, completing security updates, and working with a team of experts to stay abreast of possible threats. Through these actions and state of constant preparedness, North American organizations can prevent, respond to, and reduce the impact of a data breach. 

Check out Raritan's High Performance Remote Management Solutions and see how you can protect your business. 
 

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Sources:

• Ponemon Institute© Research Report "2017 Cost of Data Breach Study"

Increase Operational Efficiencies and Security With Remote Power Management and Server Access

Posted on August 21, 2018 by Gento

They say that life happens in a blink of an eye. In the case of Choice Hotels International, which operates more than 6,300 hotels worldwide, life happens at a much faster pace. At the heart of one of the world's largest lodging companies is its global reservation system. When someone checks in or out, a room is looked at, or a reservation is made, the transaction is promptly processed via Choice's data center. The challenge of course is that any downtime not only means lost revenue, but dissatisfied customers. This challenge is all too familiar for many corporations; fortunately, a solution exists whereby a virtual presence within an offsite data center is created.
 

Disruptive Technologies Changing Data Centers: Part 3

Posted on August 14, 2018 by Gento

Disruptive technologies will have the unique opportunity to positively impact data centers. In Part 2 of this series, we explored two technologies that are staged to change the very system and infrastructure of IT systems. In this final portion of our disruptive technologies series, we want to take a look at two technologies that will bring heightened levels of agility to data centers for a fraction of the cost.

Disruptive Technologies Changing Data Centers: Part 2

Posted on August 6, 2018 by Gento

The technological world is constantly innovating and evolving. Rather than break the rules, data centers can be found at the heart of these positive, yet disruptive changes. In Part 1 of this series, we explored two disruptive technologies that will help to meet the growing demands for data generation, security and storage. Now, we want to examine two technologies that will have the power to change the infrastructure and design of IT systems.

The True Cost and Causes of a Data Center Breach: Part 1

Posted on July 25, 2018 by Gento

For the past few years, data breaches have run rampant amongst the news headlines. These breaches are defined as events whereby an individual's personal information, such as their name, Social Security number, financial or medical record, banking credentials, or credit card is put at risk or stolen. Recent studies have revealed that data breaches are either the result of an internal or external malicious attack, system error, or human error. While the causes of data center breaches vary, the result is typically costly for any organization.

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