Invenio IT

The Real Top 7 Causes of Data Loss and How to Combat Them

Tracy Rock — Tue, 12 May 2026 10:13:41 +0000

Most businesses don’t lose data because of a Hollywood-style cyberattack.

Data loss is often caused by everyday operational failures — hardware issues, accidental deletion, ransomware, cloud sync problems, and human error.

The real risk isn’t just losing files. It’s downtime, recovery delays, compliance exposure, and operational disruption.

Below are the most common causes of business data loss — along with ways organizations can reduce risk and improve recovery readiness.

1. Human error
2. Power failure and natural disasters
3. Hardware failure
4. Ransomware and other malware
5. Software failure
6. Migration errors
7. Malicious deletion

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1) Human Error Is One of the Leading Causes of Data Loss

Human error is one of the most common causes of data loss today. At larger organizations, data is accidentally deleted on a near-daily basis. This can include deleted emails, spreadsheets, SaaS data loss or even entire folders that are inadvertently dragged into the Recycle Bin.

Sometimes employees are immediately aware of their mistakes. But sometimes they don’t realize it until days or weeks later. In either case, that data is often gone forever unless you have a dependable backup system in place.

Roughly 75% of data loss is caused by human error according to the IT Policy Compliance Group 2025 report.

Keep in mind, data loss can be caused by numerous types of mistakes beyond accidental deletion, such as misconfigured servers, infrastructure mismanagement and deception from social engineering attacks like phishing emails.

How to prevent data loss from human error:

For faster recoveries, with fewer hiccups, choose a data backup system that allows you to quickly recover individual files and folders, in addition to larger datasets, from a recovery point.
Smart backup software can help to identify lost data. Backup solutions like Datto SIRIS, for example, feature a web-based interface called Backup Insights, which makes it easy to quickly identify files that have been modified, created or deleted between any two backup points. Files can be rapidly recovered even when the file names and the deletion dates are unknown. (Request Datto SIRIS 5 pricing here.)
Limit user access to only the files and folders they need. This can reduce the risk of accidental deletion in unauthorized folders. Plus, it can limit the spread of malware across a network, as we discuss further below.

2) Data loss from power failure and natural disasters

Power outages, surges and other electrical fluctuations are among the leading causes of impactful data loss, especially when they affect data centers, according to Uptime Institute’s 2025 Outage Analysis.

Power failure is often caused by severe weather, and a changing climate could make things a lot worse in the years ahead.

Consider this …

Several of the worst California wildfires in history occurred within the last few years. (Reuters)
Some of the most extreme Atlantic hurricane seasons in U.S. history have occurred within the last 15 years. The 2020 season was the most active on record. (Washington Post)
Tornadoes, which once rarely occurred outside the Midwest, are on the East Coast, hitting places like New York City and Massachusetts.
Rising global temperatures will not only cause more intense heat waves, but also more extreme snowstorms in certain parts of the U.S., due to a weaker, less stable jet stream.

But let’s take climate change out of the picture for a minute. Even then, natural disasters remain one of the top causes of data loss for businesses. Fire and flooding are especially common at office buildings around the world.

40 to 60% of small businesses never reopen their doors after a disaster, according to FEMA – so the stakes are high.

Natural disasters clearly pose a safety risk to your staff and your office structures. But also, they pose a major risk to IT infrastructure. If your servers are flooded, destroyed by fire or unexpectedly shut off by a power outage, your business-critical data could be destroyed. And when you have no other backups available, your business may not be able to recover.

How to prevent data loss from power failure and natural disaster:

Make sure your data is backed up to the cloud, in addition to your on-site systems. This ensures that your data can always be recovered, even if your on-site backups can’t.
Protect your on-site infrastructure with the latest fire suppression and flood prevention. Even flood sensors, which alert you to the presence of water in your server room, can greatly reduce the impact of a flooding event.
Limit downtime even further by deploying a BCDR platform that lets you virtualize your data in the cloud. Datto’s Instant Virtualization capabilities, for example, let you boot your backup as a virtual machine in seconds, from anywhere. This gives you the quickest access to your data, as well as the applications that run your business, even if your on-site infrastructure has been destroyed.
Even a brief power outage can cause a lack of access to data and costly downtime. You can defend against this common scenario by installing backup generators on the premises.

You’ll never be able to stop Mother Nature. But with the right preparation, you can ensure your data survives even the worst natural disasters.

3) Hardware Failure and Server Issues

When technology breaks, your data is put at risk. Hardware damage and system malfunction are among the top causes of data loss. It happens every day at businesses of all sizes, all over the globe. At best, your tech fails and the data in transit is lost forever. At worst, entire drives of data stop working.

Numerous kinds of IT malfunction can cause trouble for your data. Here are just a few:

Hard drive failure
Operating system crashes
Software errors and crashes (more on this below)
Network hardware failure
Physical damage to hardware

Let’s focus on the hard drive failure for a minute. After all, your hard drives are where your data lives. So when the drive fails, your critical files can be corrupted and unrecoverable. The problem is: all hard drives have a shelf life. They all fail eventually. Like all mechanical parts, the spinning disks and moving parts inside a traditional hard drive eventually slow down or break.

One study found that as much as 50% of hard drives fail every five years. Factor in the risks of network hardware failure and other damage, and you’ve got a wide array of potential data loss accidents just waiting to happen, any day of the week.

How to prevent data loss from hardware failure:

If you can’t afford to lose any data, then deploy a BCDR solution that allows for a more frequent backup schedule. This will allow you to set an aggressive Recovery Point Objective (RPO), so that your data loss after a hardware malfunction is minimal.
Datto uses Inverse Chain Technology, which allows for backups up to every 5 minutes, while also eliminating the most commonly occurring problems in traditional backup chains.
Be aware of your hardware lifespan. Set schedules for upgrading various components every few years (based on manufacturer recommendations) to prevent unexpected failures.

4) Data loss from ransomware, viruses and other malware

Malware is one of the most common causes of data loss – and since these threats are constantly evolving, businesses need to deploy every safeguard possible.

Every day, your anti-malware systems are blocking malicious viruses, bad websites, suspicious attachments, bad IP addresses, hijackers, worms, adware and more. But tomorrow, those threats will be back. And there will be new ones too: new strains of malware that your anti-virus systems don’t even know about.

Consider ransomware – a threat that wasn’t even on most companies’ radar just a decade ago. Ransomware has quickly become one of the biggest data killers today, costing small businesses billions of dollars a year in downtime alone. On average, roughly 10 attacks are attempted against businesses every second of the day. When successful, these attacks lock businesses out of their data and bring operations to a screeching halt.

But while ransomware is getting all the attention these days, other forms of malware remain just as dangerous.

Fileless attacks (which leverage legitimate functions within software to launch an attack, rather than relying on file downloads) increased by 1,400% in 2022, according to research by Aqua Nautilus.
Mobile malware has increased by 52% in recent years, infecting data on the handheld devices that are increasingly used on business networks.
In one survey conducted by a leading data backup technology provider, 29% of respondents said their top causes of data loss were malware and viruses.

Not all malware targets your data with the same ferocity as ransomware. But all it takes is one virus to compromise some of your business-critical files or create instability in your software and operating systems, leading to catastrophic data loss.

How to prevent data loss from ransomware, viruses and other malware:

Use business-grade anti-virus and anti-malware protection and make sure it updates automatically, every day.
Consider BCDR technology with built-in malware protection. For example, Datto’s backup systems automatically detect the signs of a ransomware infection, quickly alerting administrators to roll back to a clean recovery point. Protection like this can vastly reduce the scale and spread of a ransomware attack.

5) Data loss from software failure

Globally, software malfunction consistently ranks among the top 5 causes of business downtime and data loss, according to the by LogicMonitor.

When software fails, users lose any unsaved work, resulting in significant productivity losses. But that’s only the beginning. Similar to hardware failure, a sudden application crash can also cause large swaths of data to become corrupted and unretrievable. That loss alone can be extremely costly (especially if there’s no backup). But in some cases, the software will need to be completely reinstalled, hampering productivity even further.

One of the worst aspects of software failure is its unpredictability. You don’t know when it’s going to happen, and afterward it may not be clear why it happened. However, there are some steps you can take to prevent data loss when it occurs:

How to prevent data loss from software failure:

Patch your software and O/S frequently by installing the latest updates as soon as they become available. This can greatly reduce the bugs and system errors that lead to data loss.
Make sure your data backups protect all your application data. If your applications store data locally on unprotected endpoint machines or outside the network, then this is a recipe for disaster if software failure occurs.
Only use software from trusted developers. If you’re using custom applications that were developed in-house or by third parties, and the software is constantly crashing, then it’s time to reevaluate your options. Stick to software from established, well-known developers, unless your needs absolutely warrant a custom deployment.
Be careful with integrations. One of the most common causes of data loss from software failure is faulty integrations. Before adding third-party tools or leveraging API capabilities, make sure the software is safe to integrate.

6) Data loss from migration errors

This one often falls under the category of human error, but not always. Regardless of the cause, a lot can go wrong when large amounts of data are being moved and updated. And when those errors occur, data is often lost.

Most commonly, data is overwritten. The reason for this can be as simple as misnaming a destination folder (which is why migration problems are typically caused by human error). Other times, it may not be so clear what caused the problem or where it went. Botched migrations can destroy data in a number of ways, including corruption from faulty configurations and unexplained deletions.

Why migrate in the first place? Often this is necessary when deploying new software or hardware, or when you’re implementing new folder hierarchy (such as for security, efficiency or other reasons). System upgrades, data consolidations and application integrations are also common reasons for migration.

So, how do you prevent data loss from migration errors? With a lot of the same safeguards that we’ve already covered above …

How to prevent data loss from migration errors:

Always back up your data before migration, especially if you’ll be moving large amounts of data. This should be a new, one-time backup that is outside of your regular backup schedule.
Ask before you integrate. If you’re integrating a new application or tool, make sure the integration is safe before you touch any data. For example, if you’re adding a new third-party application, confirm whether it’s fully compatible with your existing systems or has known issues.
Review configurations carefully. Remember that migration problems are commonly caused by mistakes during the configuration stage. Review all settings carefully and if you’re not sure about something, reach out to the vendor or another IT professional.

7) Data loss from malicious deletion

Nobody likes to believe their coworkers would purposefully sabotage company data, but it happens surprisingly often. In a survey conducted by Aberdeen Group, 7% of companies reported they had lost data due to malicious deletion by their own employees or contracts.

These incidents are sometimes shocking enough to make headlines, as was the case in 2016 when an IT administrator was charged with a felony for intentionally deleting 615 backup files before leaving his job at a software firm. More recently, a Singapore man was fined S$5,000 for maliciously deleting files from his employer’s Google Drive account. The reason he did it? Because he’d been fired.

Employee firings are often the impetus for malicious file deletion. Regardless of where the blame lay for the termination, if an employee believes they have been slighted by the company, they may try to get payback in the last moments before their exit.

That’s where termination policies can play an important role in preventing this type of data loss …

How to prevent data loss from malicious deletion:

Practice the rule of “least privilege.” This is the idea that each user should only have access to the files/folders they need to perform their jobs. So if any malicious deletion occurs, it will be limited to those folders.
Coordinate terminations with IT. Don’t give terminated employees the time to commit misconduct before they exit the company. Terminated employees should immediately lose access to data and systems, ideally at the same time that their termination is announced.
Use stronger backup technology to detect when sudden large-scale deletions or file changes are occurring, such as with Datto’s Rapid Rollback. This allows you to quickly restore only the affected files, without having to reimage the entire machine.

Quiz: Which of these is not a potential cause of data loss?

Here’s a pop quiz to test what you’ve learned: Which of these is not a potential cause of data loss?

Server failure
Network firewall
Database migration
Utility outage

The answer is: network firewall.

Explanation: A firewall helps to block malicious traffic on a network, but it is typically not a direct cause of data loss. A variety of network problems can and do lead to data being lost. For example, a network outage might cause employees to lose unsaved work. Also, a lack of network security will allow external threats to infiltrate a network and compromise company data. The firewall helps to prevent such threats and is therefore not a common cause of lost data.

Data loss prevention

The most important strategy for preventing data loss is routinely backing up your data. This ensures that your business has a failsafe and can recover any files that have been lost, regardless of the cause. Strong access control policies and employee training can also help to significantly minimize data loss from human error and cybersecurity incidents. For larger businesses, data loss prevention (DLP) software can also be a valuable tool for preventing data breaches and exfiltration.

Working with a trusted NYC IT Services agency, like Invenio IT can ensure you have the right tools and policies in place—from backup solutions to disaster recovery protocols.

Frequently Asked Questions

1. What is the most common cause of data loss?

Human error is the most common cause of data loss. Common examples include accidental file deletion, overwriting data or security lapses, such as users responding to phishing or spam emails that contain malware like ransomware.

2. What are the four common causes of data breaches?

Four common causes of data breaches are compromised credentials, phishing attacks, IT failure and human error, according to a 2024 report by IBM.

3. What’s the difference between data loss and data breaches?

Data loss refers to the destruction or deletion of files, whereas data breaches are incidents in which private or sensitive company data has been accessed or shared with unauthorized parties.

Conclusion

Today’s top causes of data loss—like human error and hardware failure—are massively disruptive and costly for businesses. But they are also preventable. Companies must implement a robust business continuity and disaster recovery strategy, supported by dependable data backup technology, to ensure they can rapidly restore their files and systems after any data-loss event.

Protect your business from the top causes of data loss

Get more information on how your business can prevent data loss with smarter backup and disaster recovery solutions from Datto, as well as other cybersecurity solutions that safeguard your network. Schedule a call with one of our data-protection specialists at Invenio IT or contact us by calling (646) 395-1170 or by emailing success@invenioIT.com.

Datto Backup Frequently Asked Questions (Updated for 2026)

Dale Shulmistra — Mon, 11 May 2026 10:34:25 +0000

Datto Backup FAQs

What is Datto? How does it protect your data? Our Datto FAQ has the answers.

If you’re comparing BCDR solutions, it’s important to evaluate each option carefully to ensure you choose the right fit for your needs. We’ve put together some of the most frequently asked questions about Datto backup to help you make an informed decision.

If you have a question you don’t see here, feel free to give us a call at (646) 395-1170.

What is Datto?

Datto is a leading provider of data backup and disaster recovery solutions. The company’s flagship product is the Datto SIRIS, which is an all-in-one solution that unifies backup and recovery in a single, integrated stack.

Founded in 2007, Datto is headquartered in Norwalk, Connecticut, and has satellite offices located around the globe. As of 2024, the company had about 2,000 employees worldwide.

How does Datto backup work?

Datto backs up your data on a dedicated, on-site Datto device and replicates it to the Datto Cloud. A Datto backup can be restored locally or in the cloud using a variety of recovery methods, including instant virtualization.

The Datto backup process is powered by Datto Inverse Chain technology, which stores each recovery point in an independent, fully constructed state. This removes the reliance on previous backups and eliminates the need for chain rebuilds.

What are the benefits of Datto backup solutions?

One of the main benefits of Datto backups is that they are fully integrated, all-in-one systems. They combine a dedicated on-site backup device with replication in Datto’s immutable cloud, and the ability to recover data instantly from either source with virtualization and numerous other restore methods.

This is unique from other BC/DR solutions which often require configuring third-party clouds and other disparate components to achieve continuity. With Datto, everything is seamlessly unified in one stack, which has several advantages:

More resilient backups
No messy configurations
Faster deployment
Easier management
Greater control over the entire backup & recovery process

Datto’s solutions are also known for several other benefits, including: backup speed and frequency, reliability of backups, built-in ransomware detection, instant virtualization and smart recovery options like Rapid Rollback.

How is Datto different from other backup solutions?

Datto is unique from other BCDR solutions in the way it creates, stores and secures backups. Datto uses its exclusive Inverse Chain Technology, which eliminates the traditional backup chain by storing each recovery point in an independent, fully constructed state. Backups are stored on a local Datto device and replicated to the Datto cloud.

Datto is also unique in that it is a “channel-only” vendor, meaning that its products are only available through a select group of managed-service providers, such as Invenio IT.

What is a Datto Server?

The term “Datto server” is sometimes used to casually describe a “Datto appliance,” though the latter is the technically accurate term. Datto uses a dedicated device, or appliance, to back up servers locally and replicate those backups to the Datto cloud for added protection. This is a private, immutable cloud that is comprised of secure Datto servers that are purpose-built for backup and recovery.

How does Datto’s warranty policy work?

Every Datto device comes with a minimum 3-year warranty, and the Datto SIRIS 5 has a 5-year warranty. Datto devices are fully covered as long as the service is active and is being paid. You do have the option to purchase an extended warranty. After the warranty expires, Datto will continue to support the device and host the data off-site as long as the service continues to be paid, but the device will no longer be covered by warranty. If the device were to fail, you can purchase a new device and Datto can pre-load your data at no charge.

In the event of a disaster and the Datto device is damaged, what happens next?

In the event of a disaster, we will virtualize all of your servers in Datto’s datacenter, and your business will continue with minimum interruption. Datto will send a brand new device with all data and configurations in place at no charge — for all devices currently under service.

In the event of a failure, how fast does Datto ship a new drive or device?

A new drive or device ships same business day or next business day, depending on shipping limitations.

What happens if I stop paying for service?

If you stop paying the service fee, Datto will no longer support the device. We will not provide technical support, and the warranty is void. All data will be removed from our off-site data storage facilities after 30 days of non-payment. Devices will still function as a local NAS.

What kind of security is in place at Datto’s data centers?

Datto’s data centers utilize Security Access and Control Systems (SACS) that use global biometric authentication access methodology to track all authenticated data center employees and prohibit the entry of any unauthorized personnel. Datto data centers are staffed 24/7, in addition to off-site Critical Facilities Management Teams that report and record all access and alarm information to ensure the most comprehensive security possible. This translates to completely secure data centers.

What kind of encryption do Datto backups use?

Each Datto device uses advanced encryption technology to keep data secure. During both transmit and cloud storage, all data is fully encrypted using AES 256 and SSL key-based encryption. You have the option to encrypt backups locally with the Datto SIRIS. AES 256 is certified by the NSA as the encryption used for all Top Secret government data. Datto employees cannot view data.

Where does Datto storage occur?

Datto stores data locally on a designated backup device (SIRIS or ALTO) and in Datto’s private cloud. This enables organizations to restore data from either source based on the circumstances of the data-loss incident. Data in the Datto Cloud is stored in two geographically diverse data centers as an added failsafe.

Do you have any information about Datto’s data centers?

Yes, all Datto backups are stored in private data centers, which are purpose-built to maintain backup integrity and security. You can find out more information about Datto’s data centers and Datto storage policies here.

Do you have any information on Datto’s Support Level Agreement (SLA)?

Yes, you can find Datto’s Technical Support Service Level Agreement here.

If I outgrow my Datto device, can I upgrade to a larger device?

Yes, if you do outgrow the storage capacity of your Datto device, you can upgrade your device to a larger unit if your device is currently under service. Depending on the make and model, the upgrade will either be an onsite upgrade, or require a new device if it’s in a different product class (i.e., Professional vs. Enterprise). Please contact us for more information.

How much does Datto cost?

Several variables affect the cost of deploying Datto, including the size of the backup device, the number of systems that it protects and how it’s deployed. Pricing will vary by provider, but typically businesses will pay for the initial installation and then a monthly fee for storage and service.

Datto is sold exclusively through a network of managed service providers (MSPs). With some deployments, businesses will have the option of paying for service monthly or prepaying a few years in advance with cost savings. The best way to get a quote for your specific needs is to request Datto pricing.

Datto SIRIS Commonly Asked Questions and Answers

Who is Datto SIRIS for?

Datto SIRIS is designed for small-to-medium businesses (SMBs) and enterprises that require high-performance data protection and near-instant recovery. It is an ideal choice for:

Mission-critical environments: Organizations where downtime results in significant financial loss or operational paralysis. Because SIRIS can virtualize a failed server locally or in the cloud in seconds, it’s built for those who need a “Zero Downtime” objective.
Varying IT infrastructures: Companies using any mix of physical and/or virtual servers (Windows, Linux, or Mac) that require a unified, reliable backup bridge.
Compliance-heavy industries: Businesses in healthcare (HIPAA), financial services, or legal sectors that need guaranteed data sovereignty, end-to-end encryption, and long-term cloud retention.
Growing businesses: Since SIRIS is highly scalable, it’s a good fit for companies that want a solution that grows with their data footprint without requiring a total “rip and replace” of their backup hardware.

What is the pricing for Datto SIRIS?

Datto SIRIS pricing starts at $1,095 with costs varying by hardware, deployment type, retention period and service options. Each Datto appliance is available in numerous sizes and capacities, so pricing is dependent on each company’s specific needs and infrastructure requirements.

View the Datto SIRIS 6 pricing & spec sheet for more information or to request a quote customized to your needs.

How do you properly size a Datto SIRIS?

Sizing for the Datto SIRIS is based on a number of factors. First, look at the total data “usage” across the servers and workstations you will be protecting. Datto is an image-based backup system, so the Datto SIRIS will back up the OS, applications, databases, files and folders. The general rule is to size the SIRIS on a 2.5 to 1 basis, of the data used. If you are going to encrypt the local agents, that should extend to 3 to 1 or greater. If you will be protecting servers with large transactional databases, you should increase the ratio to account for this.

The next consideration is the number of servers you will be protecting. The greater the number of servers, the higher the SIRIS product line (example – Enterprise vs. Business). If you have any questions, please contact us, and we’ll help make sure your SIRIS device is sized properly.

What happens in the event of a disaster?

For servers or workstations that are protected, you can recreate or virtualize your servers or workstations locally from your Datto SIRIS device through the device’s web portal. In the event of a more severe disaster and your Datto SIRIS device is destroyed, your servers/workstations will be recreated at Datto’s data centers via a remote web portal. You can then connect to the servers or workstations with VPN and RDP connections (public IPs can also be made available). The backups will continue, even while machines are virtualized, and once you are back to normal at your location, you will seamlessly transition back to physical machines after virtualization. You will be shipped a new SIRIS device with all data and configurations at no extra charge — for all devices currently under service.

If a server fails, how quickly can we restore data from Datto SIRIS?

Within seconds to minutes, you can spin up a virtual instance of your failed server directly on the Datto appliance itself (local instant virtualization). Employees can continue to access critical files and applications as if the original server were still online. This bridge allows your business to maintain critical operations while you repair or replace the primary hardware at your own pace.

Can Datto SIRIS backup and restore SharePoint to different versions?

Yes, Datto enables you to backup and restore SharePoint, and restore to different versions. There are a few ways to do this, depending on the environment. Datto SIRIS enables you to perform a granular Microsoft SharePoint restore using Ontrack PowerControls. You can also use Datto SaaS Protection to automatically back up SharePoint (and automatically detect new Sites, including Microsoft Teams Sites, in your SharePoint environment).

Can Datto SIRIS backup and restore Microsoft Exchange?

Yes, you can backup and restore Microsoft Exchange. You can restore to the store, mailbox or message level. When using Microsoft 365, Microsoft Exchange can also be backed up with Datto SaaS Protection, which provides cloud-based backup of all data in M365.

Can Datto SIRIS backup and restore Microsoft SQL?

Yes, you can backup and restore SQL with Datto SIRIS (and with Datto ALTO, for small businesses). Datto provides two ways to back up Microsoft SQL servers: 1) with agent-based backups, or 2) using SQL Server’s native backup function to back up to a NAS share hosted on the Datto device.

How many servers or workstations can I protect with Datto SIRIS?

Each Datto SIRIS comes with an unlimited number of server and/or workstation licenses. The only limitation is the amount of data across your servers and workstations, and the Datto SIRIS device.

Is there a monthly service charge for storing my data off-site?

Yes, with each device you have the option to store your data off-site at Datto’s data centers. You will have a monthly option, or you can prepay 1, 2 or 3 years in advance with cost savings. With the service, you will be able to virtualize your servers and workstations off-site, receive next day shipping on destroyed devices and archived snapshots of your data, which you can restore from.

Does each Datto SIRIS device come with archiving?

Yes, each device under service has an option for pay-as-you-go pricing, 1 year off-site or infinite cloud storage with no size limits. The archive contains daily snapshots of the device, stored at Datto’s data centers.

Once we have our Datto SIRIS up and configured, is it possible to test our disaster recovery plan?

Yes, we highly recommend documenting your disaster and recovery procedure. We recommend testing out your disaster recovery plan at least once a year, preferably twice. Our reps are available to help you put together your plan and test it out with you.

Is it possible to see a demo of the SIRIS virtualization process?

Yes, you can view a demo of the local and off-site virtualization process here. You can also schedule a live technical demo with one of our Technology Strategists here.

How is Datto SIRIS deployed?

The Datto SIRIS is commonly deployed as a dedicated on-premises backup device that stores backups locally and replicates them to the Datto Cloud. However, SIRIS can also be deployed as a virtual machine (Virtual SIRIS), imaged onto existing hardware (SIRIS Imaged) or as a self-contained Private Cloud (SIRIS Private) by deploying two physical SIRIS devices.

Can Datto SIRIS be deployed as a virtual appliance?

Yes, Datto SIRIS can be deployed as a software-only implementation, referred to as Virtual SIRIS or vSIRIS. With this deployment, SIRIS runs as a virtual machine (VM) in either VMware ESX or Microsoft Hyper-V.

Virtual SIRIS offers the same core functionality as the physical SIRIS, but it runs in a virtual machine via existing hardware. VMs can be spun up in seconds from the Datto Cloud or they can be spun up directly on a local device, even in the absence of Internet connectivity. Two key benefits of Virtual SIRIS are its quick remote deployment capability and its ability to support a wide variety of custom configurations.

What is the Datto storage capacity for SIRIS?

Datto SIRIS 6 is available in several models with a max storage capacity of 120TB for the top-end model. The smaller all-Flash SIRIS 6X offers a storage capacity of up to 4TB. The base SIRIS 6 appliances start at 2TB. Datto also offers a powerful desktop version of SIRIS (SIRIS Desktop or S6-D), with capacity options between 2TB to 24TB.

Be sure to use the 2-3x multiplier rule when sizing your SIRIS. Your Datto device should have a storage capacity of 2-3 times the space of the machines being protected, at minimum.

Additional Common Questions about Datto

Does Datto use a private cloud or public cloud?

Datto uses its own immutable cloud, consisting of dedicated Datto servers in data centers around the globe. Unlike a traditional public cloud, which provides all-encompassing data storage for a wide range of organizations, the Datto Cloud is used exclusively for secure storage of data backups from Datto customers and/or their MSPs.

For organizations that require a fully private cloud to comply with federal regulations, this can be achieved with SIRIS Private. This involves the deployment of two Datto SIRIS devices to create a self-contained private cloud.

What is Datto cloud backup?

The term “Datto cloud backup” may refer to several Datto solutions that offer backup storage in the Datto Cloud. Datto’s all-in-one backup solutions, such as the SIRIS and ALTO, combine local hardware with replicated cloud backups. Datto also offers cloud-only deployments of SIRIS, as well as endpoint protection with direct-to-cloud backup and SaaS backup products.

Can you back up Microsoft 365 with Datto?

Yes, you can back up Microsoft 365 with Datto SaaS Protection for M365. This is a dedicated cloud-to-cloud backup solution that replicates all data in M365 to Datto’s immutable cloud, including data from Exchange, OneDrive, SharePoint, Teams and more.

Can Datto back up Google Workspace?

Yes, Datto SaaS Protection provides automatic backups of Google Workspace, including Gmail, Calendar, Contacts and Google Drive. Data is stored in the Datto Cloud and can be recovered quickly with flexible recovery options, including point-in-time, granular and non-destructive restore functions.

What is Datto Inverse Chain Technology?

Datto Inverse Chain Technology is an incremental backup method that creates fully constructed backups that can be restored without dependency on a chain of previous backups.

With Datto, each new recovery point is stored in an independent, fully constructed state, so that there is no rebuild process when backups are restored. This increases the speed and resiliency of the backups, while also making them quicker to recover.

How is Datto Inverse Chain Technology different from traditional incremental backups?

Traditional incremental backups rely on an initial full backup of your data, followed by a sequential chain of incremental backups that capture any new or modified data. However, this chain is often fragile: if one link fails, subsequent backups are unrecoverable and restorations are slow.

Datto’s Inverse Chain Technology eliminates this dependency. It converts each incremental snapshot into a fully independent recovery point. This ensures no chain corruption, faster restorations and the ability to instantly boot or recover from any specific point without rebuilding past data.

Do Datto Backups have ransomware protection?

Yes, the Datto SIRIS has built-in ransomware protection, which scans each backup for signs of a ransomware footprint. If ransomware is detected, admins are notified, allowing them to take action much faster and roll back to a clean recovery point.

Additionally, SIRIS has a number of other features that provide inherent protection against ransomware, including the high backup frequency, Rapid Rollback technology, backup virtualization capabilities and cloud backup redundancy.

What is Datto Rapid Rollback?

Rapid Rollback is a data recovery method on the Datto SIRIS that allows you to quickly undo widespread unwanted file changes, such as those caused by ransomware. Rapid Rollback enables you to quickly restore only the files that were changed, so that you don’t have to reimage the entire machine.

In addition to reversing the damage from a ransomware attack, Rapid Rollback is also useful for restoring data after an unsuccessful OS update or application failure in which major unwanted changes have occurred.

How long after a ransomware attack can we restore our data from a Datto backup?

The timing of full recovery from a ransomware attack will depend on a few factors, including the extent of the infection and the company’s backup frequency. With Datto SIRIS, your recovery happens in two distinct stages:

Stage 1: Business Continuity (Seconds to Minutes) Instead of waiting for a full restore, you can use Instant Virtualization to “spin up” a clean version of your server from a backup point taken before the infection. This can be done either locally on the Datto appliance or in the Datto Cloud. In many cases, your team can be back to work in under 10 minutes while the actual data restoration happens in the background.
Stage 2: Targeted Data Restoration (Minutes to Hours) A traditional “Bare Metal Restore” is an option if needed, but typically a much faster recovery method is Datto’s Rapid Rollback technology. This tool identifies only the specific blocks of data that were changed or encrypted by the ransomware and restores only those pieces.
- Timeline: For a typical server with moderate changes, this “surgical” restore can often be completed in a fraction of the time of a traditional restore, usually ranging from 30 minutes to a few hours, depending on the volume of encrypted files.

How do we restore data from our Datto backup?

Datto offers several different recovery methods to fit the needs of various disaster situations. These methods include file/volume restore, virtualization (local, cloud or hybrid), Rapid Rollback, bare metal restore, ESX upload and image exports, among others.

Use Datto’s Disaster Recovery Guide to determine the right recovery method for your situation and instructions on how to perform each. (If you are a customer of Invenio IT, we will of course handle this data recovery for you.)

What’s the difference between Datto SIRIS and ALTO?

The primary difference between the Datto SIRIS and ALTO is storage capacity. ALTO has a maximum storage capacity of 1TB and is designed to accommodate smaller businesses. SIRIS comes in several models with maximum storage up to 60TB, making it a better fit for larger organizations.

The functionality of SIRIS and ALTO is largely the same. However, one notable difference is that Instant Virtualization on ALTO is available only via the Datto Cloud, whereas SIRIS allows virtualization both locally and in the cloud.

How does pricing compare for Datto SIRIS vs. Datto ALTO?

Datto ALTO pricing does not have an upfront deployment cost (with a one-year agreement in place), whereas Datto SIRIS starts at $1,095 for select models of SIRIS 6. However, the costs ultimately depend on the specific deployment and service requirements, as several options are available.

Which Datto backup solution is right for our business?

It’s best to speak to a Datto partner who can match you with the right solutions based on the your company’s specific needs. However, here is a quick breakdown of the differences between some of Datto’s offerings:

Feature	Datto ALTO	Datto SIRIS	Datto Endpoint Backup
Best Use Case	Small offices/startups with minimal server footprint.	Mid-sized to Large businesses with mission-critical servers.	Servers, VMs, remote workers, laptops and workstations.
Recovery Timeline	Cloud Virtualization: Spin up protected systems in the Datto Cloud in seconds. See more restore options	Instant Local or Cloud Virtualization: Spin up protected systems locally or in the cloud. See more restore options	File-level or Image Restore: Rapidly restore lost files or full PC images from the Datto Cloud.
Storage Capacity	Up to 2TB	Up to 120TB+	1.5TB per device
Hardware	Small Micro-PC	High-performance Desktop or Rackmount	None (Cloud only)
Key Advantage	Professional BCDR at an entry-level price point	Robust data protection with fully unified hardware, software and cloud	Cloud-based backup and recovery for every endpoint

How often are backups with Datto?

Datto SIRIS allows for backups as often as every five minutes, though not every organization will need this frequency. Businesses can schedule their backups to meet their specific operational needs and recovery point objectives (RPOs).

Datto’s high backup frequency is made possible in part by its inverse chain technology, which uses ZFS’s “copy on write” capability for greater speed and efficiency (each unique block of data is saved only once and is referenced by all of the restore points that use it).

Does Datto do backup testing?

Yes, automatic backup testing is available on the Datto SIRIS and ALTO. Referred to as Screenshot Verification, this process automatically builds and boots each backup as a virtual machine and performs context-sensitive tests to confirm that it is working properly.

SIRIS allows you and your MSP to not only see if the protected system is bootable, but also verify that applications are accessible.

What is Datto Cloud Deletion Defense?

Datto’s Cloud Deletion Defense provides an extra layer of protection in case cloud backups are deleted accidentally or maliciously. Similar to the functionality of a Recycle Bin, it provides a limited window for MSPs to retrieve deleted agents directly from Datto. The feature is available for SIRIS, ALTO and NAS.

Does Datto back up endpoints?

Yes, Datto offers a few solutions for protecting endpoint data. Datto Endpoint Backup for PCs provides direct-to-cloud backups of Windows-based computers, without the need for a local backup device. Similarly, for cloud backups of servers, businesses can use Datto Endpoint Backup with Disaster Recovery, which can protect workloads wherever they’re located: local, off-site or in virtual machines.

A lighter-weight option for endpoint backup is Datto File Protection, which is designed to safeguard business-critical files and folders.

What are the three supported backup methods on a Datto device?

The three supported backup methods for Datto backups are: 1) incremental backup, 2) full backup, and 3) differential backup. In addition, Snapshot backup is another method that can be utilized on a Datto device that captures a point-in-time copy of the data.

What companies use Datto?

Thousands of companies, across nearly every sector of business, use Datto to back up their critical data. Although Datto does not publicly share the names of companies using its solutions, it has more than 1 million users globally.

How do you contact Datto Support?

For businesses using Datto, the best way to get Datto Support is to contact the managed service provider who manages your Datto systems. However, in an emergency in which you are unable to reach your MSP, you can try contacting the 24-hour Support Hub that is available to Datto Partners. Businesses and/or their Datto Partners in the United States can call 1-888-294-6312 or email support@datto.com. Datto Partners may use Datto’s online Support Hub by logging into their accounts.

Have More Questions about Datto Backup? Give Us a Call.

Looking for other information that we didn’t include in our Datto FAQ? We’re happy to answer any other questions you may have! Contact Invenio IT today at (646) 395-1170 or schedule a meeting with one of our data protection specialists. You can also email us at success@invenioIT.com or request a free demo to take a closer look at Datto’s backup solutions.

Datto Appliance: An Inside Look at Hardware Specs & Pricing for 2026

Dale Shulmistra — Tue, 05 May 2026 11:40:58 +0000

Overview of Datto’s Appliances

The Datto appliance is the foundation of Datto’s unified backup and recovery solutions. It’s a dedicated backup device that resides on site to back up your data and replicate it to the Datto Cloud.

In this post, we take an inside look at Datto’s flagship appliance (SIRIS), including key benefits, specifications, Datto SIRIS pricing and how it compares to other Datto appliances.

What is a Datto appliance?

A Datto appliance is dedicated hardware for data backup and recovery. It’s the central component of Datto’s all-in-one BCDR solutions, which unify a local backup device with redundant off-site storage in the Datto Cloud. When data loss occurs, files or systems can be restored from the appliance or from the Datto Cloud.

Benefits of Datto appliances

The key benefit of deploying a Datto backup appliance is that it provides dedicated resources for backup and recovery processes. This enables faster, more frequent backups and faster restore times, especially when using virtualization or performing full restores of entire machines.

Another primary benefit of Datto’s appliances is their tight integration with the Datto Cloud. This creates a fully unified BCDR solution that enables backup and recovery locally and in the cloud.

Below, we outline the many additional capabilities of Datto’s backup systems, including Inverse Chain Technology and built-in ransomware detection. But first, let’s look at what’s under the hood.

Datto Appliance features & hardware specs (SIRIS)

Datto SIRIS 6

The Datto SIRIS 6 is Datto’s flagship BCDR solution, with appliance options available in varying sizes and form factors, offering storage capacities ranging from 2TB to 60TB. This enables organizations to deploy the right backup device for their infrastructure and continuity objectives.

Note: At Kaseya Connect, Datto announced upcoming support for agentless Hyper-V backups in SIRIS—reducing deployment complexity and making it easier for organizations transitioning from VMware.

Who this is for:

Small-, Mid- and Enterprise Organizations: Designed for businesses with high-density data environments that require large storage capacities (up to 120TB) and the highest level of hardware performance.
High-Security Environments: Ideal for organizations with strict compliance or security needs, as it includes advanced features like FIPS-mode encryption and automated ransomware scanning.
Businesses with Low RTO/RPO Needs: Best for companies that cannot afford downtime and require near-instant local or cloud virtualization to keep operations running.

Hardware specifications

Tip: Datto groups its SIRIS appliances into three levels, using naming conventions that denote the storage capacity. For example, the SIRIS 6-2 (or S6-2) denotes a storage capacity of 2TB, whereas S6-60 is the 60TB device.

SIRIS 6-2 through 8	SIRIS 6-12 through 36	SIRIS 6-48 through 120
Capacity: 2TB, 3TB, 4TB, 6TB, or 8TB	Capacity: 12TB, 18TB, 24TB, or 36TB	Capacity: 48TB, 60TB, 80TB, 100TB, or 120TB
Form factor: 1U Rackmount	Form factor: 1U	Form factor: 2U
SATA HDD	SAS HDD	SAS HDD
Dedicated OS Drive	Dedicated OS Drive	Dedicated OS Drive
RAID: RAID 1 (Mirror)	RAID: RAID 1 / RAID Z1	RAID: RAID 10
CPU: Intel Xeon 6357P	CPU: AMD EPYC 9255 or 9335	CPU: AMD EPYC 9555P
RAM: 32GB – 64GB DDR5 ECC	RAM: 96GB – 192GB DDR5 ECC	RAM: 512GB DDR5 ECC
SLOG: 480GB SATA SSD	SLOG: 960GB SATA SSD	SLOG: 960GB SATA SSD
NIC: 2 x 1G	NIC: 2 x 10G Copper	NIC: 2 x 10G Copper
Non-Redundant PSU	Redundant PSUs	Redundant PSUs
Weight: 23 lbs (10.5 kg)	Weight: 38.0 lbs (17.3 kg)	Weight: 54.5 lbs (24.8 kg)

For more information, view our Datto SIRIS 6 page.

Additional Datto appliances

In addition to the SIRIS models highlighted above, Datto offers a few other backup devices to fit the needs of different organizations.

Datto SIRIS 6 Desktop

The Datto SIRIS 6 Desktop (S6-D) is the compact desktop version of the SIRIS 6. It weighs roughly 15 pounds and is designed with a dedicated 256GB m.2 NVMe solid-state OS drive. Capacity scales from roughly 2TB up to 24TB. It’s a great option for businesses with varying backup requirements and/or those that do not use a server rack.

Who this is for:

Branch or Remote Offices: A perfect fit for professional offices (law firms, medical practices, etc.) that need enterprise-grade BCDR but do not have a dedicated server rack.
Mid-Sized Workgroups: Tailored for environments needing more storage and performance than a MiniPC can provide, but with a smaller physical footprint than a rackmount server.
Distributed IT Infrastructures: Useful for businesses managing multiple physical locations where local virtualization capability is needed on-site at each branch.

Hardware specifications:

Form factor: Desktop
Capacity: 1860GiB to 22320GiB (approx. 2TB to 24TB)
RAID: RAID 1 (mirror) or RAID Z1
Dedicated OS drive: 256GB m.2 NVMe SSD
CPU: AMD EPYC 4245P or AMD EPYC 4345P
RAM: 32GB to 64GB DDR5 UDIMM ECC
NIC: 2x 10G Copper
Weight: 15.0 lbs to 16.5 lbs (6.81 kg to 7.49 kg)

Datto SIRIS 6X appliance

Device Layout

Power button with LED indicator
Universal Audio Jack (Not used)
Line Out (Not used)
USB 3.0. Type A
USB 3.0. Type C
Power connection
DisplayPort
HDMI port
USB Type A (x4)
Gigabit Ethernet Network Interface Port with LAN LED indicators

Even smaller than the SIRIS Desktop (but still mighty) is the Datto SIRIS 6X Appliance (or S6-X). This is the MiniPC version of the SIRIS 6. It weighs just over 3 pounds and features a solid-state 256GB NVMe OS drive, delivering faster speeds and performance in a highly compact footprint. Capacity is available in 2TB (S6-X) and 4TB (S6-X4) storage options, making it ideal for businesses with smaller backup requirements that need enterprise-grade data protection without a server rack.

Who this is for:

Small Businesses & Retail: Designed for “lean” IT environments, such retail shops, small clinics or any businesses that need powerful protection in a device roughly the size of a book.
Resource-Constrained Locations: Ideal for sites with limited space or power, offering a silent, compact form factor without sacrificing the core SIRIS software features.
Single-Server Protections: Best for businesses only protecting one or two critical machines where a full-sized rackmount would be overkill.

Hardware specifications:

Form factor: MiniPC
Capacity: 1860GiB to 3719GiB (approx. 2TB or 4TB)
Array: Non RAID
Dedicated OS drive: 256GB NVMe m.2 SSD
Storage drive: 2TB or 4TB NVMe m.2 SSD
CPU: AMD Processor
RAM: 16GB DDR5 non-ECC SODIMM (2x 8GB)
NIC: 1x 1GbE Copper
Weight: 3.05 lbs (1.38 kg)

Datto ALTO 5 appliance

The Datto ALTO is a MicroPC backup appliance built for smaller organizations. Like the S6X, ALTO features solid-state OS and storage drives for fast backups, restores and VMs. Capacity is 2TB, making it ideal for businesses with smaller backup requirements.

Who this is for:

Price-Conscious Small Businesses: Built specifically for small organizations looking for an entry-level, cost-effective BCDR solution that bypasses the complexity of enterprise hardware.
Companies with Minimal Agents: Best suited for environments protecting up to four machines (agents), focusing on essential recovery and cloud-first safety.
Startups or Basic IT Needs: Ideal for businesses that primarily need a reliable “set it and forget it” backup with the peace of mind of 1-click cloud disaster recovery.

Hardware specifications:

Form factor: MicroPC
Capacity: 2TB
Storage drive: 2TB NVMe m.2 SSD
Dedicated OS drive: 256GB SATA m.2 SSD
CPU: Celeron 7305 (5c/5t, 1.10 GHz)
RAM: 8GB DDR4 (1x8GB) non-ECC
NIC: 1x 1GbE
Weight: 6.5 oz (0.18 kg)

Datto Networking Appliance

The Datto Networking Appliance is not a backup device, but it’s worth mentioning here as it’s another example of dedicated on-prem hardware provided by Datto. The Datto Networking Appliance (DNA) is a high-performance router with fully integrated 4G LTE failover, built-in firewall and intrusion detection. It’s one of several networking products offered by Datto, including Wi-Fi access points and switches.

Choosing the right Datto backup appliance

Since Datto offers several different appliances, organizations must be careful to deploy the right backup device for their needs. Datto provides some helpful tips on properly sizing an appliance. But as a general rule of thumb, companies should choose their device based on how much data they need to back up and how many machines.

Datto recommends selecting an appliance with a storage capacity that’s at least 2 times greater than the used disk space on the protected machine (this practice is referred to as the 2-3x multiplier rule). For example, if you’re backing up a 2TB server, then you may want to deploy a Datto SIRIS 4TB appliance or larger.

The table below provides a general guideline for selecting the appropriate appliance for the number of agents to be installed.

Datto Hardware	Max Agents	Max Cloud TB
SIRIS S5/S6-X	3	6
SIRIS S6-X4	4	12
SIRIS 6 Desktop 2TB	3	6
SIRIS 6 Desktop 4TB	6	12
SIRIS 6 Desktop 6TB	9	18
SIRIS 6 Desktop 8TB	12	24
SIRIS 6 Desktop 10TB	12	30
SIRIS 6 Desktop 12TB	12	36
SIRIS 6 Desktop 16TB	12	48
SIRIS 6 Desktop 24TB	12	72
SIRIS 6 Desktop SSD 2TB	3	6
SIRIS 6 Desktop SSD 4TB	6	12
SIRIS 6 Desktop SSD 8TB	12	24
SIRIS 6 Desktop SSD 12TB	18	36
SIRIS 5/6 2TB	3	6
SIRIS 5/6 3TB	5	9
SIRIS 5/6 4TB	6	12
SIRIS 5/6 6TB	9	18
SIRIS 5/6 8TB	12	24
SIRIS 5/6 12TB	19	36
SIRIS 5/6 18TB	28	54
SIRIS 5/6 24TB	37	72
SIRIS 5/6 36TB	40	108
SIRIS 5/6 48TB	40	144
SIRIS 5/6 60TB	40	180
SIRIS 6 80TB	40	240
SIRIS 6 100TB	40	300
SIRIS 6 120TB	40	360

Note: These are just rough estimates provided by Datto as a guideline. Actual usage of devices by agent quantity can vary significantly depending on a variety of factors, including configuration, encrypted agents, and the volume of data being protected.

Datto’s appliance-free backup solutions

In addition to the physical SIRIS and ALTO devices, Datto also offers appliance-free backup solutions for protecting endpoints and servers. These solutions provide direct-to-cloud backup, which means that files are backed up directly to the Datto Cloud, bypassing the need for an on-site appliance.

Endpoint Backup: Protects Windows servers, virtual machines (VMs), cloud instances, desktops and laptops with the ability to restore individual files and folders or perform a full bare-metal restore.
Endpoint Backup with Disaster Recovery: Protects all production workloads on Linux and Windows servers & PCs, with the ability to spin up workloads in the Datto Cloud, in addition to other restore methods.

Backup & recovery capabilities

It’s important to remember that a Datto appliance is just one piece of a multilayered backup and recovery solution. The device is driven by Datto’s robust backup software, which is seamlessly integrated with the Datto Cloud. This creates a fully integrated BCDR stack with several capabilities that make it unique from competitors’ backup products:

Inverse Chain Technology: Every incremental snapshot is a fully constructed recovery point, making backups faster and more resilient, while also eliminating the need for slow chain rebuilds.
Ransomware protection: All backups are automatically scanned for ransomware as part of the backup process.
Fast recoveries: Protected files, folders and entire systems can be recovered in seconds from the Datto appliance or the Datto Cloud via several restore options.
Instant virtualization: Backups can be booted as virtual machines (locally, in the cloud or hybrid) for instant access to protected systems.
Rapid Rollback: Major unwanted changes, such as a ransomware infection, can be quickly reversed without needing to reimage an entire machine.
Cloud Defense: Even if cloud backups are deleted (accidentally or maliciously), Datto offers a failsafe to promptly undo the deletion.
Backup Verification: Backups are automatically test-boosted to ensure they are viable. Plus, Datto’s Backup Verification provides script execution to verify that applications are accessible.
Backup Insights: Datto’s web-based interface makes it easy to locate and restore lost data by identifying file changes between any two backup points.
Security: Datto employs the highest security standards across its backup devices and cloud storage, including end-to-end data encryption, multi-factor authentication and ransomware-proof ZFS snapshot files.

Pricing for Datto hardware

Pricing for a Datto SIRIS 6 appliance starts at $1,095, but some of the upfront hardware costs may be discounted fully with certain deployments or manage-service agreements. Pricing will also vary based on the appliance model and storage capacity, as well as the number of devices you need to protect and the desired length of data retention in the Datto Cloud. Given the variable costs of each deployment, the best way to get accurate pricing is to request a quote.

Datto SIRIS vs. alternative solutions

If you’re comparing BCDR options, here’s how Datto SIRIS stacks up against comparable systems from other providers.

Feature	Datto SIRIS	Veeam Data Platform	Unitrends
Solution Architecture	Fully Integrated Stack: Combines purpose-built hardware, backup software, and proprietary cloud storage out of the box.	Software-Centric: Software only; requires you to procure, configure, and manage your own hardware and third-party cloud storage.	Appliance-Based: Combines hardware and software, and proprietary cloud storage with optional third-party cloud integrations or secondary appliances for off-site replication.
Cloud Disaster Recovery	Native & Instant: Ability to instantly spin up virtual machines directly in the secure, geo-redundant Datto Cloud without needing extra equipment.	Requires Configuration: Cloud recovery requires complex, manual integration with external hosts (like AWS or Azure).	Host-Dependent: Ability to instantly spin up virtual machines directly in the secure Unitrends Cloud or optional third-party cloud providers.
Backup Technology	Inverse Chain Technology: Every incremental backup is a fully constructed recovery point, eliminating the risk of a corrupted backup chain.	Traditional Chains: Relies on standard forward or reverse incremental chains, which can be vulnerable if a single point in the chain fails.	Full, Incremental and differential backups: Gives businesses flexibility to balance speed, storage and recovery needs.
Deployment & Management	Turnkey: True plug-and-play deployment designed to minimize IT management time; highly automated.	Complex Build: Highly customizable, but requires a steep learning curve and significant hands-on IT management to maintain.	Moderate Management: Easier to deploy than software-only options, but user interface and daily management provide greater granularity, which can be complex.
Ideal Use Case	Organizations prioritizing rapid, guaranteed recovery, minimal downtime, and a hands-off, all-in-one continuity strategy.	Large enterprises with dedicated IT engineering teams seeking highly customized, multi-vendor infrastructure.	Mid-market companies looking for physical appliances but willing to manage more complex recovery processes.

Reviews & testimonials

Datto’s appliances are highly regarded for their reliability, performance and ease of deployment. In independent reviews, users consistently cite Datto’s robust hardware and integrated cloud as key factors that deliver a better backup and recovery solution than competing products.

Datto SIRIS currently has an 8.6 score out of 10 on TrustRadius with 96 reviews. Among Datto reviews from our own clients at Invenio IT, one customer stated: “The Datto SIRIS is simply the most important device in our network rack. This ingenious device has saved the day in many emergencies while migrating files and making hardware upgrades.”

Conclusion

Datto’s appliances bolster a company’s data protection by providing dedicated hardware for backup and recovery. These local devices are fully integrated with the Datto Cloud, providing redundant off-site storage with the ability to restore data instantly from the cloud or the on-premises appliance. Datto offers a variety of appliance options for its SIRIS and ALTO BCDR solutions, enabling organizations to deploy the right hardware for their infrastructure.

Which Datto appliance is right for you?

Schedule a meeting with one of our data-protection specialists at Invenio IT to identify the right Datto backup solution for your organization’s needs. You can also reach our experts by calling (646) 395-1170 or emailing success@invenioIT.com.

Business Continuity: What It Is, Why It Fails and How to Get It Right

Tracy Rock — Tue, 28 Apr 2026 17:44:50 +0000

Business continuity is essential for every organization’s survival. But most companies fail to properly prepare for disasters – even when they have a business continuity plan.

When a crisis hits, the illusion of safety quickly collapses under reality:

Backups don’t guarantee recovery.
Most plans are never tested.
Downtime costs are often underestimated.

In this post, we explore why most business continuity plans fail when they’re actually needed – and what to do differently.

What Is Business Continuity?

Business continuity is an organization’s ability to maintain essential functions during and after a major disruption. It extends far beyond basic disaster protocols to encompass the specific processes, technologies and redundancies required to keep critical services running. True continuity ensures that when infrastructure fails, your business does not.

Related reading:

Where Business Continuity Fails

It is easy to feel secure when operations are running smoothly, but real-world disasters quickly expose the cracks in a company’s planning. When critical systems go down, generic business continuity strategies often collapse in a few predictable areas:

1) Plans are Created, but Not Tested

Some companies spend months drafting protocols and mapping out redundancies, only to shelve the document and assume the job is done. But a theoretical defense almost always fails under the pressure of a real-world crisis.

Examples of common failure points:

Communication workflows break down during a critical infrastructure outage.
Data backups become corrupted and unrecoverable during an emergency.
Untested assumptions (rather than routine, full-scale simulations) lead to painfully slow recoveries.

2) Backups Exist, but Recovery is Too Slow

Having your data backed up means nothing if you can’t actually use it. Traditional recovery methods can sometimes require rebuilding entire systems from the ground up, leaving your operations paralyzed for days or weeks. Every hour spent waiting for a system restore is an hour of unacceptable financial loss.

Examples of common failure points:

Outdated backups can’t be restored quickly enough, or they fail completely.
Not all company data is protected, such as SaaS platforms and other cloud services like Microsoft 365.
Recovery methods are limited due to hardware limitations or the lack of redundant backup storage.

This is where a robust backup solution is absolutely essential for ensuring a rapid recovery via numerous restore options and redundant data storage locations. (For most small- to mid-sized businesses, we recommend Datto SIRIS for its fully integrated, all-in-one BCDR capabilities. Check Datto SIRIS pricing for your organization.)

BUSINESS CONTINUITY CHECK

Are you actually recoverable?

Backups are only useful if they can bring your business back online fast. Get a clear look at your real recovery gaps before downtime, ransomware or infrastructure failure exposes them.

Get My Recovery Review →

No prep needed. Just a clear view of your recovery risk.

3) Ransomware Targets Recovery Systems

Modern cyberattacks don’t just target live production data. They actively seek out your backups too. A continuity plan that doesn’t account for advanced ransomware—by utilizing immutable storage or strictly air-gapped backups—will leave you helpless and likely paying the ransom.

Examples of common failure points:

Connected backup drives become encrypted simultaneously because they are not properly isolated from the primary network.
Compromised administrator credentials allow attackers to access the backup console and manually wipe all existing recovery points.
Automated schedules unknowingly sync infected files, overwriting the last clean data snapshot before the attack is even detected.

4) BC Plans Rely on Outdated Assumptions

Businesses evolve, but their recovery plans often stay static. Adding new applications, shifting workloads to the cloud or changing operational workflows without simultaneously updating the continuity strategy creates massive, undocumented blind spots that only become apparent when disaster strikes.

Examples of common failure points:

Theoretical disaster scenarios fail to reflect modern threats, leaving the team paralyzed when a targeted cyberattack takes out systems in unexpected, complex ways.
Newly adopted operational workflows grind to a halt because they were never integrated into the core continuity strategy.
Presumed recovery timelines fall completely short during a real crisis because the documented planning was not tested or updated to reflect the current infrastructure.

Expert Insight — Dale Shulmistra, Invenio IT

A static plan is a guaranteed point of failure. I can’t tell you how many times our team has been called into a crisis, only to find a company relying on a massive continuity binder that hasn’t been tested in years. They added new servers, moved data to the cloud and vastly changed their infrastructure, but never updated their recovery protocols. These kinds of blind spots create expensive and time-intensive challenges for recovery.”

What Actually Matters for Business Continuity

When evaluating your operational resilience, theoretical capabilities must give way to hard, actionable metrics. Your decision-making should be driven by precise objectives and timelines, supported by the appropriate technologies and procedures:

Recovery Time Objective (RTO): How long can your business realistically survive being offline or losing mission-critical services? Whether it’s measured in minutes or days, this timeline must perfectly align with your infrastructure investments.
Recovery Point Objective (RPO): What is your strict tolerance for data loss? If your operations can only afford to lose one hour of transaction data, a nightly backup schedule is fundamentally broken.
Testing Frequency: Annual reviews are often inadequate. You must establish a continuous testing cadence that proves your RTO and RPO metrics are achievable under real-world stress. Everything in your business continuity plan should be routinely reviewed and tested.
Failover Capability: Knowing your RTO is only half the battle. You need the physical or cloud infrastructure to actually execute it. To meet aggressive recovery timelines, you must have the specific mechanisms in place to instantly redirect workflows to redundant systems. Create contingencies for every process and scenario.

The Reality Check: Common Failures vs. Real Continuity

Scenario	Common Failures	Real Continuity
Server Hardware Failure	Days of downtime spent replacing drives, rebuilding from bare metal and manually restoring data.	Immediate failover to a secondary instance or cloud replica, restoring functionality in minutes.
Ransomware Infection	Total operational halt; primary and backup networks compromised; forced to consider paying the ransom.	Immediate isolation of the infected network and rapid restoration from an immutable, clean backup.
Facility Outage / Disaster	Staff unable to work; physical infrastructure completely inaccessible and operations paused indefinitely.	Seamless transition to remote operations via accessible, cloud-based virtual environments.

Real-World Scenarios: Successful Continuity Planning

When real disasters occur, business continuity is only achieved when the recovery plan includes granular processes and solutions for overcoming every possible disruption. Here are some example scenarios illustrating successful continuity planning.

The Ransomware Lockout

A financial services firm is hit by a sophisticated ransomware attack. Because their backups were deliberately segmented and immutable, the attack failed to compromise their safety net. The company bypassed the ransom demand entirely, wiped the infection from servers and restored full operations before business hours on Monday morning.

How Continuity Was Achieved:

Immutable Storage: The backup repository was air-gapped in the cloud, preventing the ransomware from encrypting the safe data.
Network Isolation: Automated threat detection instantly severed the infected systems from the rest of the environment to contain the blast radius.
Instant Virtualization: The IT team spun up virtual clones of their servers in a secure cloud environment while the physical hardware was being scrubbed.

Related reading:

Ransomware in Financial Services: 2026 Insights & Cybersecurity Guide

Costly Internet Outage

A major ISP outage disconnects Internet access for hundreds of businesses. But some of them prepared for this scenario, recognizing the steep costs of extended downtime. Their systems automatically fail over to a secondary cellular network, restoring the connection immediately so that critical operations can continue.

How Continuity Was Achieved:

Automated Failover: Redundant internet connections detected the primary drop and instantly routed traffic to backup cellular networks.
Intelligent Traffic Prioritization: Because backup cellular connections often have lower bandwidth than primary fiber lines, the firewall automatically throttled non-essential web browsing and prioritized critical data like VoIP calls and cloud-hosted applications.

The Infrastructure Failure

A localized pipe burst floods a primary server room. Instead of panic and slow hardware triage, the affected business quickly redirects its network traffic to a cloud-hosted replica, maintaining customer-facing services seamlessly while the physical damage is assessed and repaired.

How Continuity Was Achieved:

Real-Time Replication: Continuous data syncing (low RPO) ensured that all transactions made right up until the moment of the flood were safely mirrored off-site.
Cloud Failover: Instead of waiting days for replacement bare-metal servers, network traffic was seamlessly rerouted to the cloud replicas.
Distributed Access: Remote access protocols allowed employees to securely access the cloud data, bypassing the flooded facility entirely.

Related reading:

Updated Disaster Recovery Scenarios Test Guide (with Examples)

Conclusion

Business continuity is not a static operational objective. It is a dynamic, ongoing commitment to your organization’s survival. By confronting the uncomfortable truths about where traditional strategies fail and prioritizing rigorous testing with realistic recovery metrics, you can transform vulnerability into genuine operational resilience. Ultimately, a proven business continuity plan ensures that when complex and unexpected disruptions occur, your business will have the systems and procedures to confidently power through them.

Want to know your true RTO?

Never rely on assumptions or generalized continuity objectives. Schedule a meeting with our business continuity experts to start building a resilient infrastructure capable of weathering the worst. Call us at (646) 395-1170 or email success@invenioIT.com

How to Build Your Technology Foundation to Support Growth

Tracy Rock — Tue, 21 Apr 2026 18:16:07 +0000

Business growth is a good problem to have until it starts making things harder.

What used to be fast and easy now takes extra steps. A report takes longer. A task lives in two places. A quick decision turns into back-and-forth that eats up half of your afternoon. Individually, each of these is manageable. Together, they slow everything down.

Complexity creep is the part of business growth no one talks about, and it leaves your team spending more time navigating work than being productive.

Your technology foundation is more important than ever, and it’s under pressure to keep up.

What a strong technology foundation looks like

Think about a week when everything just ran smoothly.

Your team knew where to find what they needed without sending a message asking, “Which folder is that in?” A new client came on board and setting them up took hours, not days. You weren’t paying for three tools that all did nearly the same job while everyone quietly guessed which one was the main one. Most of all, nothing important fell through the cracks because there was a clear process to catch it.

That’s the byproduct of a strong, well-maintained technology foundation.

When your tools work well together, your team stops working around the system and starts moving with it. Processes are clear and work flows without getting lost, delayed or overlooked. It’s easy to spot something that needs attention.

When your IT foundation is in good shape, growth feels manageable instead of chaotic because your business is prepared to handle challenges when they surface.

Why foundations weaken over time

Foundations don’t weaken overnight. They weaken gradually, through a series of reasonable decisions that made sense at the time, such as:

Adding tools as new needs come up

One team picks a tool to solve a problem. Later, another team chooses something similar without realizing there’s already a solution in place.

Letting quick fixes stay in place for too long

A spreadsheet meant to be temporary becomes part of the daily routine. A workaround that helped in the moment quietly becomes standard practice.

Getting used to extra steps

People start copying information from one place to another, keeping side notes or relying on their own trackers because the main IT setup feels too hard to trust.

Not revisiting access as roles change

Someone gets the access they need to do their job, but those permissions aren’t always revoked when their role changes or when they leave the business.

Allowing subscriptions to keep renewing without review

Tools stay in place simply because no one has the time to stop and ask whether they’re still needed.

None of these things feel urgent on their own. That’s exactly why they’re easy to miss. But over time, they add friction, reduce visibility and make the foundation harder for your business to rely on.

6 steps to strengthen your foundation

If the previous section felt familiar, here’s the good news: Fixing it doesn’t mean starting over.

In most cases, improvement comes from using what you already have more effectively. This is refinement, not disruption.

Here’s where to start.

Review the tools you’re using: Look at which tools your team relies on day to day and which ones are no longer needed.

Remove overlap: If different tools are doing the same job, simplify where it makes sense. For example, one team may be using one tool to track projects while another uses something else for nearly the same purpose.

Simplify workflows: Look for extra steps, delays and workarounds that make everyday tasks harder than they need to be. For example, if someone has to copy the same information into two places just to keep work moving, that’s usually a sign the process needs to be simplified.

Clean up access: Review who has access to what and remove anything that no longer fits the person’s role.

Clarify ownership: Make sure every tool has a clear owner. If something stops working properly or needs updating, it should be clear who handles it.

Standardize key processes: Important tasks should be handled in a clear and consistent way across the business. For example, bringing on a new employee or setting up a new client shouldn’t depend on who happens to be doing it that day.

The goal isn’t perfection. It’s alignment. Most gains come from making better use of what you already have, not adding more.

How your business benefits when you get this right

Reviewing, simplifying and standardizing your technology doesn’t just reduce complexity; it makes your entire business run better.

Here’s what a stronger foundation looks like in practice:

Fewer bottlenecks

When tools work well together and processes are clear, work moves with fewer delays. People spend less time waiting, chasing information or working around problems.

Faster execution

Your team spends less time figuring out how to get things done and more time doing the work. Bringing on a new client, onboarding a new employee or launching something new becomes easier to manage.

Less wasted spend

Unused subscriptions, overlapping tools and duplicate platforms can quietly drain budget. A stronger foundation helps make sure your spending is supporting the business in a clear and useful way.

Increased employee productivity

People do better work when the tools and processes around them make sense. When the day feels less frustrating, it’s easier for teams to stay focused and move work forward.

Reduced security risk

When access is reviewed, offboarding is handled properly and there’s a clear view of who has access to what there are fewer gaps for problems to slip through.

Clearer visibility into operations

When your business IT is set up clearly, it’s easier to see what needs attention and where things may be slowing down. That helps you make better decisions.

Is your foundation ready for what’s next?

Some businesses handle growth with confidence. Others feel the strain.

The difference usually isn’t talent, effort or ambition. It’s what’s underneath. Businesses that grow well are the ones that have taken the time to make sure the foundation supporting their business can carry what comes next.

They don’t wait for something to break before they pay attention. They review, refine and strengthen on a regular basis. That’s what helps growth feel like an opportunity instead of a constant source of pressure.

If you haven’t taken a close look at whether your technology foundation is ready to support your next stage of growth, now’s a good time.

We work with businesses to review what’s already in place, identify where things may have fallen behind and build a practical plan to strengthen what’s there without unnecessary disruption. No hard sell. No major overhaul. Just a clear picture of where you stand and a straightforward path forward.

Schedule a discovery call today and let’s talk about how to strengthen what you’ve already built.

Disaster Recovery Statistics (2026): Downtime Costs, Risks & Recovery Gaps

Tracy Rock — Tue, 21 Apr 2026 10:12:00 +0000

Disaster recovery statistics in 2026 show that today’s businesses often fail to recover from a disruption because they lack adequate planning.

Below, we break down 25 recent disaster recovery stats, along with expert analysis to extract the critical lessons every organization needs to build a comprehensive business continuity plan.

🛡️ Ensure Business Continuity Without Gaps

🔒 Explore Datto BCDR Solutions →

Disaster Recovery Stats & Figures

1) 100% of surveyed organizations reported financial losses from downtime events in 2025

When it comes to disaster recovery, IT outages and the subsequent downtime are among the most costly disruptions for businesses. In a 2025 survey of 1,000 senior technology executives worldwide, 100% of respondents said their companies lost revenue due to IT outages in the previous year. Conducted by Cockroach Labs, the 2025 State of Resilience report also revealed that most organizations experienced multiple downtime incidents throughout the year, leading to ballooning costs.

Why this stat matters: Outages are virtually guaranteed to cost your business money. Planning for them is the best thing you can do to ensure a quick, effective recovery.

2) Companies experience an average of 86 outages every year

The same 2025 survey revealed that, on average, organizations experienced 86 outages a year. 55% reported weekly outages, while 14% reported outages every day. When downtime becomes a recurring issue, it can become extremely costly, especially if it’s categorized as a severe incident. Brief or low-impact outages may be an inconvenience, but when a disruption halts an organization’s ability to operate, the financial losses and reputational consequences are more profound.

Why this stat matters: Outages are not a matter of “if,” but “when.” Every business experiences them, but not every business is prepared, making recovery much more challenging (and costly).

3) 18% of organizations take more than a month to recover from ransomware

Even with the best disaster recovery systems in place, recovery from ransomware can take considerable time and resources. Only 16% of companies were able to recover within a day, according to a 2025 report by Sophos. For less prepared businesses, it can take days, weeks or even months. In a survey of more than 3,400 organizations, nearly 1 in 5 said it took more than a month to recover (16% took 1-3 months; 2% said 3-6 months).

Why this stat matters: For smaller companies, a month of downtime is a death knell. Your disaster recovery plan must prioritize Recovery Time Objectives (RTOs) for every critical system or operation, ideally measured in minutes or hours, not weeks.

4) For more than 90% of mid-sized and large enterprises, the cost of downtime exceeds $300,000 an hour

The ITIC 2024 Hourly Cost of Downtime Survey found that 90% of mid-sized and large enterprises lose upwards of $300,000 per hour of downtime (which doesn’t include any additional, ancillary costs for litigation, civil or criminal penalties). For 41% of enterprises, these hourly outage costs can reach $1 million to $5 million, on average. For smaller organizations, new insights in 2025 reveal that the downtime costs can often exceed $25,000 an hour.

Why this stat matters: Every minute of downtime burns through your bottom line. Investing in a robust BCDR solution is significantly cheaper than bleeding hundreds of thousands of dollars per hour during an outage.

5) Companies with frequent downtime have costs that are 16 times higher than other organizations

LogicMonitor’s IT Outage Impact Study shows that companies with an increased rate of incidents face financial losses that are 16 times higher than those experienced by organizations with fewer outages. In other words, although your business may not be able to prevent every possible downtime event, reducing their frequency equates to far better economic outcomes.

Why this stat matters: Chronic instability multiplies your financial risk exponentially. Stabilizing your infrastructure and minimizing recurring outages will drastically reduce your long-term IT expenditures.

6) Nearly half of organizations have discovered information-stealing malware

Malware can cause a break in continuity when it corrupts your data, crashes your applications or bricks your servers. But equally costly is information-stealing malware, which is designed to quietly harvest your sensitive data. A survey by Cisco found that 48% of organizations detected information-stealing malware on their systems designed to “capture keystrokes, extract files, steal browser data like passwords and cookies, and more.”

Why this stat matters: In attacks like ransomware, cybercriminals can extort bigger ransom payments if they gain access to your data. Advanced endpoint detection and zero-trust security protocols are required to catch these threats before data is exfiltrated or encrypted.

7) 69% of organizations say human error was a top cause of downtime

Human error is the second most common cause of downtime (behind security issues), according to 2024 figures from ITIC. We all make mistakes, but unfortunately, sometimes these blunders can bring down the whole business. More than two-thirds of companies experienced downtime due to human error, including inadvertent data loss, device mismanagement and other accidents.

Why this stat matters: Your own employees are often your biggest vulnerability. Regular cybersecurity awareness training and strict access controls are just as critical as your security infrastructure.

8) In 2022, 28% of organizations experienced server downtime due to hardware failure

Hardware failure is among the most common causes of downtime. Server drives, network devices and other components don’t last forever, and when they fail, everything stops. A survey by ITIC found that more than a quarter of organizations associated inadequate server hardware with reliability issues and downtime.

Why this stat matters: Organizations that fail to update and maintain their systems may be setting themselves up for otherwise avoidable downtime incidents.

9) Natural disasters are the #3 top risk to businesses

A 2025 report by Allianz found that natural catastrophes are the third-most concerning risk to businesses today. The findings were based on a survey of more than 3,700 risk management experts from over 100 countries, with 29% categorizing it as a top risk. However, while natural disasters get the big headlines, most operational downtime is caused by everyday threats, such as human error, hardware failure and cybersecurity incidents. An older report from Seagate also found that a mere 5% of business downtime is caused by natural disasters.

Why this stat matters: While you should prepare for floods and fires, don’t ignore the common everyday risks, such as data loss and network outages, which can be just as costly to your business.

10) 50% of organizations had data encrypted by ransomware in 2025

Ransomware attacks have become a leading cause of operational disruption due to the way these infections spread laterally across a network, rendering servers and workstations useless. A 2025 report by Sophos found that 50% of surveyed organizations had data encrypted in a ransomware attack within the previous year.

Why this stat matters: Ransomware is one of the most destructive threats to your data. You must deploy immutable backups to ensure your critical files and systems can be recovered after an attack.

11) Recovery costs from ransomware averaged $1.53 million per attack in 2025

Recovering from a ransomware attack can be extremely costly, regardless of whether an organization chooses to pay a ransom. According to Sophos, organizations reported a mean cost to recover from a ransomware attack of $1.53 million in 2025. These expenses can include the high costs of operational downtime, hardware restoration and replacement, data loss and other recovery costs (which tend to be significantly higher for businesses that don’t have adequate data backups).

Why this stat matters: Paying the ransom is only a fraction of the total cost of a ransomware attack. True financial protection requires a rapid-recovery BCDR strategy to eliminate prolonged downtime and data loss expenses.

12) 30% of data breaches involved data distributed across multiple environments

Data breaches are one of the biggest causes of downtime for organizations today. And increasingly, these breaches affect data stored across multiple environments, rather than a single server. According to a 2025 study by IBM, 30% of reported breaches involved data that was distributed across multiple environments, including public clouds, private clouds and on-premises hardware.

Why this stat matters: Costly breaches can occur no matter where your data resides. Be sure you’re deploying a unified, comprehensive backup solution that provides 360-degree protection across all infrastructure, whether on-premises or in the cloud.

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13) The average cost of a data breach in the United States is over $10 million

When data breaches occur, they result in hefty financial losses for businesses. According to IBM, the cost of a data breach for American organizations in 2025 was $10.22 million, on average – up from $9.36 million in 2024. For all businesses globally, the average cost was $4.44 million USD.

Why this stat matters: Data breaches are massively expensive. But you can significantly curb the risk with robust cybersecurity and data protection, supported by a comprehensive disaster recovery plan.

14) Small businesses experience nearly 4x more data breaches than larger companies

Data breaches overwhelmingly occur at small businesses. Verizon’s 2025 Data Breach Investigations Report reveals that the number of small-business breaches was almost 4 times higher than the number of breaches at large organizations. This is often because larger companies have better access to the resources and technology necessary to prevent unauthorized access.

Why this stat matters: Often, small businesses don’t invest enough in cybersecurity, and hackers are well aware of this vulnerability, making these companies an attractive prospect for an attack.

15) 18% of breaches involve internal actors

Out of the reported data breaches that Verizon studied in 2025, 18% of them involved internal actors. In other words, these companies’ employees accessed confidential or sensitive data (either maliciously or inadvertently). Verizon notes that one common example of an accidental internal-actor breach is a user sharing sensitive data with the wrong person.

Why this stat matters: This statistic is compelling evidence that organizations need much stronger security controls over their data, not just for outside threats, but also for their own users and third-party partners.

16) In 2025, 42% of data breaches were cloud-based

It’s not just your physical on-site servers that you need to worry about. Data loss happens in the cloud too, whether it’s at your data center or in SaaS applications, like Microsoft 365 and Google Workspace. IBM reports that 42% of data breaches in 2025 occurred in cloud-based systems (23% for public clouds, 19% for private cloud).

Why this stat matters: Public cloud providers generally guarantee service uptime, but you are responsible for your data. You must deploy dedicated backup solutions to protect cloud environments and SaaS platforms from accidental deletion and cloud-based threats.

17) 16% of businesses aren’t monitoring their backups

A 2025 report by Unitrends found that many organizations would have no idea if their backups were missed or failed completely. In a survey of 3,000 IT professionals, 10% said they wouldn’t be informed for several days if their company’s backup didn’t occur, while 6% said they don’t monitor their backup status at all.

Why this stat matters: Automated backup verification and daily reporting are mandatory to confirm your backups will be viable when disaster strikes.

18) 45% of organizations have experienced permanent data loss

A recent study by Arcserve discovered that 76% of surveyed organizations experienced critical data loss. What’s worse is that 45% of those businesses lost their data permanently. When data is irretrievable due to factors like faulty or missing backups, many businesses experience insurmountable short and long-term challenges.

Why this stat matters: Permanent data loss can cause insurmountable financial losses. But in 2026, it should never happen when robust backup solutions are widely available and affordable for small companies too.

19) More than half of small businesses that experience a cyberattack will go under within six months

For small companies, in particular, a major cyberattack like ransomware is often too difficult to overcome. One startling statistic highlighted by Inc. states that 60% of small and midsize businesses that are hacked go out of business within six months. This underscores the need for organizations of every size to increase their cybersecurity measures.

Why this stat matters: Surviving a breach requires a tested recovery playbook that brings your business back online before the financial damage becomes fatal.

20) 58% of data backups fail

Too many businesses use outdated or poorly maintained backup technology that is notorious for malfunctions and incomplete backups. A 2021 study by Veeam found that more than half of all data backups fail, creating significant issues for companies that experience cyberattacks and outages. Routinely testing your backup solution can help avoid these negative outcomes.

Why this stat matters: Legacy backups provide a false sense of security. Companies must transition to modern business continuity solutions that ensure fast, reliable recovery, confirmed by automatic backup verification and recovery testing.

21) 89% of all ransomware attacks attempt to infect backups

Ransomware gangs are fully aware of the increased reliance on backups, and, in response, they’re increasingly designing their attacks to infiltrate backup systems. As detailed in a 2025 Ransomware Trends Report, 89% of modern ransomware attacks attempt to infect not only primary systems but also backup repositories.

Why this stat matters: Not all ransomware attempts are successful, but they highlight the need for a high-quality backup solution like the Datto SIRIS, which features built-in ransomware detection to thwart infections before they spread, and immutable cloud redundancy.

22) Approximately 25% of businesses that close because of a major disaster never reopen

FEMA is well-versed in the effects of disasters, which is why it’s so concerning when they report that around one in four businesses permanently close their doors following a major disaster. That includes events such as hurricanes, earthquakes, floods and even IT incidents, like massive data loss. Small businesses face an especially high level of risk because they often lack the resources to sustain a prolonged recovery.

Why this stat matters: Without a structured disaster recovery plan, your business may be forced to close its doors for good after a disaster. You must build resilience into your business model to weather catastrophic events and return to normal operations quickly.

23) 22% of businesses have no formal disaster recovery plan

Despite the risks of potential disasters, businesses are not taking adequate precautions. A 2026 report by Disaster Recovery Journal found that 22% of organizations have no formal disaster recovery program in place.

Why this stat matters: To prevent and respond to a disaster, every business must have a comprehensive disaster recovery plan that identifies risks and guides recovery teams with clear, actionable steps during a crisis.

24) Around 7% of organizations never test their disaster recovery plans

A DRP is only good if you’re sure that it works, and a shocking 7% of companies never take the time to test their plans. Of the organizations that do conduct tests, half of them do so once a year or less frequently.

Why this stat matters: An untested DRP is just a theory. Businesses that don’t conduct regular tests may not be adequately prepared for a real-world incident.

25) 49% of organizations are investing in AI & automation to aid disaster recovery capabilities

As disaster threats have evolved over the past decade, businesses have become increasingly aware of the need for greater security and faster response to disruptions. Nearly half of surveyed companies are now investing in automation and AI-driven solutions to bolster their disaster recovery and cyber-resilience efforts, according to a 2025 report.

Why this stat matters: the speed of modern cyber threats outpaces human response times. Integrating automation into your disaster recovery strategy will dramatically accelerate your ability to detect, isolate and recover from emerging threats.

How to Prioritize Disaster Recovery

The disaster recovery statistics above paint a clear picture: many business disruptions are inevitable, but prolonged downtime is a choice. To avoid becoming part of next year’s statistics, here’s our advice on how you should prioritize your disaster recovery strategy based on what actually moves the needle during a crisis.

Backup vs. Recovery Speed

Having a secure copy of your data is just the starting line. What actually matters when an attack or outage strikes is your recovery speed, often defined as your Recovery Time Objective (RTO).

If you have terabytes of data safely backed up in the cloud, but it takes three weeks to download and restore it to a functional server, your business is still effectively dead in the water.
You must prioritize Business Continuity and Disaster Recovery (BCDR) solutions that offer instant virtualization, allowing you to spin up your backed-up servers and return to normal operations in minutes, rather than days.

Cost vs. Downtime Risk

It is easy to look at a premium, enterprise-grade data protection platform and view it strictly as an IT expense, until you weigh it against the actual risk. When the average cost of downtime routinely exceeds $300,000 per hour, and ransomware recovery averages over $1.5 million, the “cost” of a reliable BCDR solution is a tiny fraction of your total financial exposure.

Stop prioritizing your IT budget based on mere line items for deployment or monthly service expenses.
Instead, prioritize it based on the catastrophic financial risk of an unmitigated outage to any of your critical operations or systems.

Testing vs. Assumptions

Assuming your backups are working is the most dangerous game in IT. As the data shows, relying on unverified legacy technology is exactly why more than half of all recovery attempts fail when businesses need them most. You cannot afford to wait until a server crashes or a hacker strikes to find out your most recent backup was corrupted.

Prioritize modern solutions that feature automated, daily backup verification and conduct routine disaster simulation testing.
Knowing with 100% certainty that your systems will recover is what actually matters.

The True Cost of Downtime: Without vs. With BCDR

Scenario	Without BCDR (Legacy Backups or No Plan)	With Modern BCDR (e.g., Datto SIRIS)
Ransomware Attack	Operations halt for weeks. The company is forced into costly negotiations with cybercriminals, risking an average recovery cost of $1.53M and potential permanent data loss.	Infected systems are immediately isolated. Clean virtual machines are spun up from immutable backups in minutes. Zero ransom is paid.
Critical Server Failure	The entire office is offline. IT must order replacement parts and spend days manually reinstalling operating systems and restoring data from slow drives.	Instant Virtualization allows the protected server to be booted directly from the local BCDR appliance or the cloud, keeping teams working while wider recovery efforts happen in the background.
Accidental Data Deletion	A critical file or entire folder is deleted by an employee. If not caught immediately, it may be permanently overwritten. Restoring from legacy backups takes hours of IT support time.	IT performs a granular restore, retrieving the exact file, folder, or email from a point-in-time snapshot taken just minutes before the error occurred.
SaaS/Cloud Data Loss	Relying purely on Microsoft 365 or Google Workspace native retention. If a malicious app or rogue employee purges the data, it may be permanently lost after 30 days.	Dedicated SaaS Protection ensures automated, 3x-daily backups of all emails, contacts, and shared drives, allowing for one-click restores regardless of the cloud vendor’s status.
Natural Disaster (e.g., Flood/Fire)	On-site hardware is destroyed. The business suffers a total operational shutdown, joining the 25% of organizations that never reopen after a major catastrophe.	The entire network environment is virtualized in the secure cloud. Employees transition seamlessly to remote work with full access to their applications and data.

Expert Insight — Dale Shulmistra, Invenio IT

We monitor the latest disaster recovery statistics closely, but we also see these trends first-hand. For example, we often hear from companies that assumed they were protected because they had backups, but they had no recovery testing in place to prove it – and then a disaster changed everything. That’s where things break down during a real crisis. True business continuity means knowing with absolute certainty that your data and systems can be recovered according to the timetables you’ve identified in your disaster recovery plan.

Frequently Asked Questions (FAQ)

1. What do the latest disaster recovery statistics say?

Recent statistics emphasize the importance of disaster recovery planning and the risks of not having a comprehensive strategy in place. Almost half of businesses lack such planning, making them vulnerable to extended downtime and financial losses from an operational disruption.

2. What are the 4 C’s of disaster recovery?

The 4 C’s of disaster recovery are: 1) Communication: Keeping all stakeholders informed. 2) Coordination: Organizing resources and efforts. 3) Collaboration: Working together effectively. 4) Continuity: Maintaining essential operations.

3. What are the statistics of backups?

Studies show around 91% of organizations use some form of data backup. However, recent statistics reveal that about 58% of backups fail during recovery due to factors such as: outdated technology, inadequate testing or infection by malware such as ransomware.

4. How many businesses close after a disaster?

Approximately 1 in 4 businesses disrupted by a major disaster never reopen their doors, according to data highlighted by the Federal Emergency Management Agency (FEMA).

5. What are the four pillars of disaster recovery?

The four pillars of disaster recovery are: 1) Preparedness: Identifying potential risks and planning for them. 2) Response: Acting swiftly and efficiently during a disaster. 3) Recovery: Restoring systems and operations. 4) Mitigation: Implementing measures to reduce future risks.

6. What percentage of businesses that close because of a natural disaster never reopen?

Approximately 25% of businesses that close because of a major disaster never reopen, according to figures highlighted by FEMA in 2018.

7. How long does it take to recover from ransomware?

Recovering from ransomware can take anywhere from a few hours to 6 months or more, depending on the scale of the attack and the availability of data backups. In a 2025 survey by Sophos, the majority of businesses (37%) said recovery took up to a week.

What is an acceptable recovery time objective?

An acceptable Recovery Time Objective (RTO) depends on the specific business application. Mission-critical systems often require an RTO of minutes to a few hours, while non-essential operations might tolerate days. Ultimately, your ideal RTO must balance downtime costs against the expense of the recovery solution.

9. How often should a disaster recovery plan be tested?

A disaster recovery plan should be tested at least annually. However, best practice dictates testing biannually, or immediately following any significant changes to your IT infrastructure, key personnel or core business operations to ensure the plan remains effective and current.

Conclusion

Today’s disaster recovery statistics paint an alarming picture, but they underscore the importance of careful planning. If your business has yet to implement a disaster recovery plan, you may be one emergency away from a devastating operational disruption. Prioritize the development and testing of a comprehensive DRP, coupled with the deployment of advanced BC/DR technologies, to ensure your organization can rapidly recover from any disruption.

Don’t Become a Disaster Statistic

Prevent costly downtime and data loss at your organization with today’s best solutions for business continuity and disaster recovery. Request Datto SIRIS pricing (or Datto ALTO pricing for smaller companies) or schedule a meeting with our team at Invenio today. Call us at (646) 395-1170 or email success@invenioIT.com.

Don’t Automate Chaos: Preparing Your Systems for AI

Tracy Rock — Mon, 20 Apr 2026 18:49:46 +0000

AI is everywhere right now, and the pressure to do something with it is real. The question most business leaders are asking is whether they should be using it. But the more critical question is whether their business is ready for it.

AI works best in an already organized business. It doesn’t fix broken systems or unclear processes. It runs on whatever foundation is already in place, and if that foundation has cracks, AI will find them faster than you can.

Before deciding where AI fits, it’s important to understand what it does best, where it tends to go wrong and what needs to be in place for it to work.

What AI can and can’t do

Used well, AI helps businesses move faster with the resources they already have. It handles repetitive tasks, drafts communications, detects patterns in data and reduces the manual hand-offs that slow work down. For small businesses in particular, those gains add up quickly because the time savings go straight back to the people doing the work.

What AI can’t do is fix a disorganized business. It doesn’t know what matters most to your organization. It doesn’t understand your context the way your employees do. And it doesn’t set its own agenda. It works within the structure you already have, for better or worse.

AI amplifies your systems. It doesn’t organize them.

What happens when you automate chaos

When AI is layered onto a business that isn’t operationally ready, the damage doesn’t show up as a big, obvious failure. It shows up as performance quietly getting worse. The problems that existed before don’t go away. They just move quicker and become harder to trace back to their source.

In practice, it tends to look like this:

AI pulling from inconsistent or duplicate data and producing outputs that nobody fully trusts
AI tools added to a platform stack that already has too much overlap between systems
Employees independently adopting AI tools with no shared standard for how they’re used, a problem sometimes called shadow AI
Sensitive business information flowing through AI systems without clear rules about what’s allowed

The knock-on effects are predictable: more complexity, conflicting versions of the truth, friction in workflows, security exposure and a growing list of subscriptions nobody is fully on top of.

These are distractions, not disasters. But distractions running at the speed of automation are expensive.

Signs that your business isn’t ready to layer in AI

Readiness for AI isn’t about the size of your business or how much budget you have. It’s about whether your current systems and workflows are organized enough to support automation without making your existing gaps bigger.

Consider slowing down if:

You haven’t fully reviewed your tool stack in over a year
Employees regularly use spreadsheets outside your primary systems to get their work done
Multiple platforms in your business handle similar functions without a clear reason why
Access permissions and user roles haven’t been looked at recently
You’re not sure which features of your current tools are being used
Manual workarounds have become common enough that they’ve quietly turned into the official process

If your systems aren’t aligned, AI will accelerate the inefficiencies.

What getting ready for AI looks like

Preparing for AI doesn’t mean a lengthy technology project or a big upfront cost. It means taking an honest look at how your current systems are set up and making sure the foundation is solid.

In practical terms, that means:

Mapping your core workflows so you know where automation could genuinely reduce work
Making sure your tools reflect how your business operates now, not two years ago
Removing redundant systems that create overlap and make it harder to know where information lives
Cleaning up user permissions and access controls so the right people have access to the right things
Organizing your data so AI has something reliable and consistent to work with
Reviewing features in your current platforms that haven’t been set up or used yet

AI performs best in organized environments. Businesses that get the most out of AI have their foundation in order before they start.

A smarter approach to AI adoption

Properly adopting AI means not hurriedly implementing the latest features before you’ve thought through what problem you’re solving. The businesses that handle this well tend to approach it like any other significant operational decision: deliberately and with a clear picture of where they stand first.

A structured approach starts with:

Taking stock of your current systems to understand what’s working and what isn’t
Identifying the specific areas where AI can create real, measurable value
Understanding where adding AI might create more complexity than it solves
Making sure security and data governance are set up properly before any automation goes live

A technology performance review is a natural starting point for all of this. It’s not a commitment to a major rollout or a reason to overhaul everything. It’s a readiness check that tells you where your systems are aligned, where they aren’t and what needs to be sorted before AI can do what it’s supposed to do.

No forced upgrades. No hype-driven rollout. Just a clear look at where you stand and what makes sense as a next step.

What it looks like when you get things right

When AI is introduced into a business with solid systems and well-defined workflows, the results are real and sustainable rather than short-lived.

Productivity gains are genuine because the automation is working with clean, consistent inputs.
Repetitive work gets reduced without creating new confusion about who owns what.
Data insights can be trusted because the underlying information is organized and up to date.
Risk stays manageable because governance was built into the process from the beginning.
Growth becomes easier to handle because the foundation underneath it is strong enough to support it.

The smartest AI strategy isn’t about moving fast; it’s about building a strong foundation.

Build the foundation before you build on top of it

AI can make a real difference in how your business runs, but it works best when it’s enhancing something that’s already functioning well, not filling in for structure that was never there.

The businesses that benefit most from AI are the ones that take the time to get their systems right first.

That’s not a reason to wait forever. It’s a reason to start by taking a clear-eyed look at where your systems stand.

Schedule a technology performance review to assess your AI readiness and strengthen your operational foundation before you start building on top of it.

Is Your Security Built Into Your Operations or Added On Later?

Tracy Rock — Mon, 20 Apr 2026 18:40:43 +0000

Security rarely fails loudly. More often, it slips out of alignment over time, with small gaps building quietly in the background while the business keeps moving forward.

Take Marcus. He’s a fictional business owner, but his situation is one many businesses will recognize. Eleven years in, his company was running well. Antivirus, two-factor authentication and backups were all in place. Nothing had ever gone seriously wrong, and over time, that started to feel like proof that everything was as it should be.

Then he asked a simple question: “Who currently has access to our main systems?”

It took three days to get a clear answer. And when it finally came, it pointed to a collection of small inconsistencies that had built up over time, none of which had been visible day to day.

There were gaps in access, overlapping tools and permissions that had expanded without clear structure.

Nothing had gone wrong. But nothing was quite right either.

The question isn’t whether you have security tools in place. It’s whether security is built into how your business operates.

What ‘added-on’ security looks like

Marcus’s situation is a good example of what security looks like when it grows in pieces instead of being built into daily operations.

None of the issues came from a major mistake. They came from small decisions made over time, the same kind most businesses make while trying to keep work moving.

Different systems ended up with different access rules. A former employee’s account was still active months after leaving. Two departments were paying for tools that did the same job without realizing it. Several employees had admin-level permissions that were granted quickly and never reviewed.

Individually, none of these situations felt urgent. Nothing appeared broken and the business continued running as usual.

But small gaps have a way of accumulating. More often, they develop gradually through small misalignments that are never revisited.

What built-in security looks like

Marcus didn’t flip a switch and transform his business overnight. What he did was build a framework that made security part of how his business operated, not just something added after the fact.

That’s the difference between patchwork and strategy. Built-in security means access is role-based and reviewed regularly, systems are consolidated to reduce blind spots, purchases and renewals go through central evaluation, and onboarding and offboarding are standardized so nothing slips through.

In practical terms, it looks like this:

Access is tied to roles rather than individuals, so when responsibilities change or someone leaves, updates are straightforward and consistent.

Systems are reviewed and consolidated to reduce overlap, limit blind spots and give the business a clearer view of what it’s using.

Software purchases are evaluated centrally, which helps keep the tool count manageable and the overall approach consistent.

Renewals aren’t based on cost alone. They also include a review of whether the tool still fits the business and whether access is still appropriate.

Onboarding and offboarding follow a standard process every time, so less gets missed when someone joins, changes roles or leaves.

Most importantly, there’s visibility. Someone in the business can answer the question Marcus once couldn’t: Who has access to what and why?

None of this requires deep technical knowledge, but it does require the same kind of deliberate thinking that goes into running any other part of the business well.

When systems are aligned and access is managed with intention, security doesn’t have to be bolted on after the fact. It becomes stronger by design.

Where a technology performance review fits

Once Marcus understood how things had fallen behind, the next question was a simple one: What do we do about it?

He didn’t need someone to tell him everything was broken. He needed a structured way to look at what had built up over 11 years, understand where things had slipped and put a framework in place that would hold up as the business kept growing.

A technology performance review is exactly that. It isn’t a crisis response, and it isn’t a process that ends with a long list of forced replacements or disruption to how the business runs. It’s a structured, methodical evaluation of whether the technology and access controls in place still reflect how the business operates today.

A review looks at:

Whether access controls are consistent and aligned with current roles
How permissions are granted and whether they’re regularly reviewed
Where tools overlap or create redundancy
Whether shadow IT is creeping in unnoticed
How onboarding and offboarding processes are being handled
The level of visibility into who has access to what across the business

The goal isn’t to force replacements or interrupt daily operations. It’s to provide clarity. A structured evaluation that highlights what’s working, where gaps exist and how refinement can strengthen security without drama.

Align your operations and security today

In a scenario like Marcus’s, the story doesn’t have to end with a crisis. It can end with clarity. For most real businesses that take this step, that’s exactly how it goes.

Security isn’t something to revisit only after something goes wrong. It works best when it’s built into how your business is structured and reviewed on a regular basis.

If your security has been built up incrementally over the years, you’re not alone. But there’s a difference between having measures in place and having security that’s genuinely aligned with how your business operates today.

Take the first step toward stronger, built-in security. Contact us to schedule your technology performance review today. Let’s make sure your security is aligned with your operations, not layered on after the fact.

Are You Getting Full Value From Your Software?

Tracy Rock — Mon, 20 Apr 2026 18:26:42 +0000

Here’s a scenario most business owners will recognize: You’re paying for software your team uses every day. Nobody’s complaining about it and things are generally getting done. So, you leave it alone and focus on everything else that needs your attention.

That’s a completely reasonable call. But using a tool isn’t the same as fully leveraging it, and that distinction is one of the most common reasons businesses don’t get full value from their tools.

When software gets deployed, most users learn just enough to get their work done and move on. Many features that could improve productivity stay untouched. A year later, when the subscription renews, minimal usage is standard, and nobody flags it because it’s working.

Midyear is the time to ask a harder question: Are your tools working for your business, or is your business working around your tools?

Why ‘full value’ matters

Most people measure a tool by whether it runs and people use it. That’s a low bar. A tool can pass both tests and still cost more than it’s giving back.

Full value doesn’t mean:

The software runs without errors
People log in regularly
Tasks get completed

Full value looks like:

Your team uses the features that save time, not just the basics they learned on day one
Manual work is significantly reduced, not shifted to a spreadsheet sitting beside the platform
The tool fits how your business operates today, not how it operated when the tool was first set up
You’re not paying for a second platform that does the same job
The system makes work simpler and faster, not something people have to manage on top of their jobs

Full value shows up in time saved, money not wasted and smoother day-to-day work. If you can’t point to those outcomes, there’s a gap worth looking at.

4 areas businesses commonly lose value

The gap between how you use your tools and what they’re capable of usually doesn’t come from one obvious mistake. It tends to build slowly across a few common areas.

Underused features

Like we mentioned earlier, when a tool is introduced, the team usually learns what they need to get their work done. After that, usage settles into a routine. Core features get used consistently, but the broader capabilities often remain untouched.

That can include:

Automation that could reduce repetitive work but was never configured
Built-in reporting that wasn’t fully set up
Integrations between systems that were available but never activated
Advanced features included in the license that no one had time to explore

Over time, basic usage becomes the norm, even if the tool was designed to support much more.

Overlapping tools

As your organization grows, purchasing decisions may be decentralized. While each tool may make sense on its own, without coordination, overlap can develop.

You might see:

Two platforms handling similar workflows
Different teams storing related information in separate systems
Communication spread across more tools than necessary

No one intends to duplicate effort, but the list of tools expands gradually and the overall value becomes harder to track.

Manual workarounds

Workarounds usually develop when a tool hasn’t been fully configured or no longer matches the way your team works. At first, these adjustments seem minor.

Common patterns include:

Exporting data into spreadsheets to complete tasks the platform could handle
Managing approvals through email instead of using built-in workflows
Entering the same information into multiple systems because they aren’t connected

Over time, those workarounds become embedded in the process, and the original purpose of the tool becomes less clear.

License and subscription drift

Subscriptions often renew automatically, which means they continue unless someone actively reviews them. In busy organizations, that review doesn’t always happen.

That can lead to:

Paying for licenses assigned to former employees
Staying on higher tiers that aren’t fully used
Continuing subscriptions that no longer align with business needs

Individually, these small inefficiencies don’t stand out. Collectively, the cost can significantly impact the bottom line without you noticing.

Technology reviews usually happen only when something breaks. As long as the tool works, there’s no trigger to reassess it. IT becomes reactive support instead of a periodic checkpoint. The question of whether your tools are still earning their place simply doesn’t come up.

What a technology performance review does

A technology performance review is a structured look at what you already own and whether it’s doing the job you’re paying for. It’s not a pitch for new software or an excuse to overhaul your systems. It’s a practical evaluation of where your existing tools are working well and where they’re costing you more than they should.

A review should look at:

What tools you have, who’s using them and how much they’re being used
Whether your platforms match how your business operates day to day
Where you may be paying for redundant systems doing the same job
Where manual workarounds have replaced functionality that you already pay for
What you’re spending across your software environment and what you’re getting in return

The outcome isn’t a list of things to replace. It’s a clear view of where your current systems can deliver more value, along with practical steps your team can take without major disruption.

What changes when your tools are working for you

When your systems are set up properly and used as intended, the difference shows up in day-to-day operations.

Your team gets more done without adding headcount
Your software budget reflects tools that are actively being used
Work moves faster because unnecessary friction has been removed
Your workforce spends less time on workarounds
As the business grows, operations don’t become harder to manage

Before allocating budget to something new, confirm you’re getting full value from what you already have. In many cases, that’s the more efficient and lower-risk path.

Now is a good time to find out where you stand

If you haven’t reviewed how your tools are being used this year, there’s a reasonable chance you’re paying for more than you’re getting.

A technology performance review gives you a clear view of whether your systems are delivering what your business needs today. If you’d like to explore whether it makes sense for your business, start with a short discovery call. This straightforward conversation will review what you’re using now and where value may be slipping.

Ransomware in Financial Services: 2026 Insights & Cybersecurity Guide

Dale Shulmistra — Mon, 13 Apr 2026 11:55:16 +0000

Ransomware in financial services has escalated into a high-stakes extortion game, with median ransom demands surging to $3 million—higher than any other industry, according to a recent survey by cybersecurity firm Sophos.

At the same time, there are signs that organizations are improving their defenses and becoming more resilient in how they respond.

Here’s what we’re seeing in the latest data—how attacks are evolving, and how financial institutions are adapting.

Financial services organizations have remained a top target for ransomware over the past several years, alongside industries like healthcare and manufacturing. And the latest data suggests these attacks aren’t slowing down any time soon.

What this means for your business

The biggest risk for financial institutions today isn’t just getting hit—it’s whether they can recover quickly when it happens.

Ransomware attacks are increasingly designed to:

target backup systems first
delay or disrupt recovery
force payment even when backups exist

That means the real question isn’t whether you have a plan—it’s whether your plan will actually work under real-world conditions.

We’re seeing this play out not just in financial services, but across sectors where recovery speed and reliability have become the deciding factors.

If your recovery process hasn’t been tested recently, there’s a good chance it won’t perform the way you expect when it’s needed.

Not sure if your business could recover from ransomware?

We can help you understand your actual recovery risk—not just what your current setup is supposed to do.

How long recovery would actually take
Whether your backups are truly protected
Where your current plan could fail
What to fix before it becomes a problem

See if your recovery plan holds up

Takes 15 minutes. No sales pitch—just a clear answer on where you stand.

Key insights for 2026

Here are some of the most important takeaways from the latest survey of more than 360 IT and cybersecurity professionals in the financial services sector—along with what they actually mean in practice.

Record-high median ransom demands of $3 million, making financial services the most heavily targeted sector for large payouts.
59% of financial services organizations hit by ransomware said their data was successfully encrypted, up from 49% a year prior.
38% of finance companies managed to stop an attack before data was locked.
In 31% of financial services cyberattacks involving ransomware, the attackers also stole data in addition to encrypting it.
Exploited vulnerabilities were the most common root technical cause of attacks (40%), suggesting a critical need to address security gaps.

What this all comes down to

The new report shows a continued, troubling trend for banks, investment firms and other financial services organizations. Ransomware isn’t just a security issue. It is a recovery problem.

Organizations that can recover quickly avoid the worst outcomes. Those that can’t are often forced into difficult decisions under pressure. However, the findings also reveal some bright spots, as we outline below.

Silver linings

Recovery costs plummeted by 33%: The average cost to rectify an attack (excluding the ransom) fell to $1.74 million, the lowest point in three years.
Downtime is shrinking: 57% of financial organizations fully recovered within a week, up from 46%.
Firms are resisting demands: Despite initial ransom demands surging by 50%, the median amount financial organizations actually paid only rose by 5%.
Data recovery is improving. 97% of financial providers that had data encrypted were ultimately able to get it back.

Rate of ransomware in financial services by year

Determining the exact prevalence of ransomware in financial services is difficult, because banks don’t report every attack. As such, Sophos no longer reports the overall industry rate of attacks. However, it does publish the rate of data encryption from ransomware among survey respondents, which hit 59% last year for financial companies:

2025*	2024	2023	2022	2021	2020
59%	65%	64%	55%	34%	48%

*Financial services organizations that reported their data was encrypted by ransomware.

How does this compare to attacks in other industries?

In terms of data encryption from ransomware, the financial services industry was among the hardest hit in 2025 at 59%, above the 50% average rate across all industries.

Percentage of organizations, by industry, that reported data encryption from ransomware in the previous year:

Federal government	61%
Healthcare	34%
Energy	29%
Financial services	59%
Manufacturing	40%
Media & entertainment	41%
Construction	57%
Distribution	64%
Retail	48%
State & local government	59%

In total, Sophos’s 2025 cross-industry report was based on an independent survey of 3,400 IT & cybersecurity professionals for companies located across 17 countries, conducted between January and March 2025. Findings for financial services were based on a segment of 360 respondents specifically from that industry.

For deeper analysis, compare by industry:

Why are they attacking finance?

Simply put: attackers go where the money is. More precisely, they hit the industries that are most likely to meet their ransom demands. That means going after companies that can’t afford to lose their data or suffer an extended disruption to their operations.

Financial services is by far the most lucrative sector in the United States, according to data from IBISWorld. But if an attack compromises critical files or its customers’ sensitive information, the consequences can be costly. Data recovery alone can be expensive, as we note below, especially if a company’s data backups are unreliable. Plus, there’s a risk of litigation, government intervention and long-term reputational damage. Add that to the cost of service outages caused by the ransomware and these attacks can easily balloon to several million dollars.

Attackers know that financial companies will be more willing to pay the ransom to restore their data back to normal. They also know that these companies have the resources to meet larger demands. This makes the industry a hot target, especially when financial institutions continue to pay up.

Ransomware Self-Assessment Tool for Banks

Due to the heightened risk of ransomware attacks in financial services, government agencies have created a ransomware self-assessment tool to help banks and non-banks identify gaps in their security.

Developed in collaboration with the Bankers Electronic Crimes Taskforce, state financial regulators and the United States Secret Service, the assessment includes 16 questions designed to help organizations evaluate the effectiveness of their efforts to prevent and recover from an attack.

What are the root causes of successful cyberattacks on banks?

In its 2025 ransomware report, Sophos identified the top 2 operational root causes of bank ransomware attacks as follows:

66% of respondents in financial services said the root cause was lack of (or poor-quality) protection,” such as not having adequate cybersecurity systems.
67% of respondents in financial services also cited security gaps (known or unknown) – i.e. a weakness in their defenses that they were not aware of.

These statistics point to the growing sophistication of attacks – and the inability for banks to keep up with the evolving threat landscape. However, ransomware attackers also infiltrate financial institutions in several distinct ways.

Sophos reported the top technical causes of ransomware attacks in finance as:

Exploited vulnerability	40%
Malicious email	23%
Compromised credentials	19%
Phishing	13%
Brute force attack	3%

Several of these top causes ultimately fall under human error:

Compromised credentials: These often stem from weak passwords or mishandling of the credentials (such as using the same password for multiple logins). Lax security policies can also be the core underlying reason for account vulnerabilities.
Malicious email and phishing both rely on user deception, fooling the user to click a link or download an attachment

These figures underscore the importance of implementing routine cybersecurity training, in addition to strong security software and access controls.

Do financial organizations pay the ransom?

Yes, 67% of finance companies said they paid a ransom to get their data back after a ransomware attack – up from 51% the year before.

As a rule of thumb, federal authorities strongly advise all organizations not to pay the ransom, except as a last resort. Paying the attackers fuels the growth of the ransomware market, making it worse for everyone. Also, some attackers will gladly take the money without ever decrypting data as promised, resulting in a steep financial loss for the victim.

How much do banks pay their attackers?

Among the financial organizations that reported paying a ransom to retrieve their data, the average payment was $3 – a 50% increase from the previous year. 32% of ransom demands were for $1 million or more, while 36% of demands were $5+ million.

It’s important to note that many companies do not share information about their ransom payments. In many cases, it’s in their best interest not to report the attack at all. In Sophos’s survey, only 147 financial organizations were willing to share the ransom amounts they paid. $3 million was the median payment amount among those companies.

What about data backups?

Backups are an essential layer of data protection for financial services firms, ensuring they can restore systems that have been encrypted by ransomware. 44% of financial organizations said they used backups to successfully restore data after a ransomware attack, down from 62% in 2024.

This is an encouraging figure, but it also means that a significant percentage of banks were unable to restore their data from a backup (or they retrieved the data via other methods, such as by paying the ransom). This is why it’s critical for banks to use dependable disaster recovery systems, like Datto BDCR, to ensure that encrypted data can be quickly recovered.

How much are the recovery costs for financial companies?

Not surprisingly, ransomware attacks on financial institutions are extremely costly. In 2025, financial organizations shelled out an average of $1.74 million to fully recover after a ransomware attack, down from $2.58 million in 2024.

This figure does not include any ransom payments, which represent only a fraction of the total recovery costs for most organizations. Ransomware attacks can cause operational downtime, idled workers, hardware malfunction/replacement, lost revenue/growth opportunities and long-term reputational damage, all of which can be enormously costly.

How long did recovery take?

Financial services companies with robust backup systems are sometimes able to fully recover in less than a day. But not all organizations are so fortunate, as illustrated by the figures below.

Full recovery time reported by financial organizations:

Less than a day	10%
Up to a week	47%
Up to 1 month	26%
1-3 months	16%
3-6 months	1%

Recent financial services cyberattacks

1) The Marquis Software Supply Chain Attack

In August 2025, Marquis Software—a vendor that provides data analytics and communication software to financial institutions—suffered a major cyberattack, which affected at least 74 banks and credit unions across the United States.

What we know:

While initial reports were unclear on victim counts, regulatory filings and researchers in March 2026 revealed that the breach exposed the personal and financial information of between 672,000 and 1.35 million people.
Data was also stolen during the breach, including highly sensitive personal information like Social Security numbers, Taxpayer Identification Numbers, and financial account details.
While no ransomware gang took public credit for the attack, a breach notification letter from Iowa-based Community 1st Credit Union indicated that Marquis Software paid a ransom to the attackers.

Source: Recorded Future News

2) Fog ransomware hits Asian bank system

In May 2025, a ransomware attack on an unnamed Asian financial institution revealed that attackers were using Fog ransomware to exploit a legitimate employee monitoring system known as Syteca (formerly Ekran), according to researchers at Symantec.

What we know:

While several details of the incident are unknown, such as the name of the financial institution, researchers say the attack methods were something they had never before seen in a ransomware attack.
Researchers believe that Syteca was used to harvest users’ credentials for about 2 weeks prior to deploying the ransomware, as the software is ordinarily used by companies to monitor employees’ keystrokes and other on-screen activity.
Attackers also leveraged other open-source penetration-testing tools, including GC2, Adaptix and Stowaways – which adds to the unusual, sophisticated nature of the attack.

Source: Symantec

3) C-Edge ransomware impacts 300 banks

In 2024, nearly 300 banks in India were forced to shut down temporarily due to a ransomware attack on C-Edge Technologies, which provides banking systems to small financial services companies across the country.

What we know:

The attack on C-Edge led to payment systems being shut down for hundreds of mostly small, rural banks across India.
To isolate the attack, National Payments Corporation of India (NPCI) immediately blocked C-Edge from accessing all retail payment systems operated by NPCI.
The attack was linked to the RansomEXX group, which infiltrated C-Edge through a third-party provider’s misconfigured server.

Source: Reuters

4) Globalcaja takes down large Spanish bank

Globalcaja – a leading Spanish bank with more than 300 branches across the nation – confirmed in June 2023 that it had suffered a ransomware attack. The attackers, known as the Play ransomware group, claimed they stole data in addition to encrypting it.

What we know:

In a statement, the bank said that computer systems at several of its locations were infected with ransomware.
The attack forced the bank to close some locations and “temporarily limit the performance of some operations.”
Hackers reportedly stole “private and personal confidential data,” including client and employee documents, passports and contracts.

Source: Recorded Future

What is the best protection against bank ransomware?

Defending against bank ransomware requires a multilayered security strategy that not only prevents the malware from taking root but also enables banks to rapidly recover any infected data from backups. Essential components of this security strategy include:

1) Cybersecurity solution: Financial institutions of any size require comprehensive cybersecurity protection via a managed threat detection and response solution such as RocketCyber MDR. (See RocketCyber pricing.) This provides robust, active response to emerging threats, backed by human analysis.

2) Data backup: Banks must deploy an advanced data backup solution that enables round-the-clock backups and fast recovery of infected data via an array of restore options, from file/folder-level restore to full system virtualization and bare metal recovery. (Our pick: Datto SIRIS BCDR.)

3) Employee training: All bank employees should be thoroughly trained on the tactics used by ransomware attackers and how to spot them, such as phishing emails. A cybersecurity awareness platform like BullPhish ID is strongly recommended to automate this training at all levels of the organization and to test users with realistic phishing simulations. (Request BullPhish ID pricing.)

Conclusion

Ransomware attacks in financial services are both common and costly, with 59% of surveyed organizations saying their data was encrypted by ransomware within the last year. However, companies can significantly curb the impact of a ransomware attack with stronger disaster recovery systems and preventative measures.

In research by Sophos, the majority of reported attacks were linked to human error, including compromised credentials, phishing attacks and malicious email. This suggests there is a lot of room for improvement in implementing user training that educates employees on safe practices for email/web and how to identify suspicious messages.

Additionally, financial service organizations can dramatically accelerate recovery time by implementing a robust data backup system. Data backups allow companies to restore encrypted files back to a clean state, thus minimizing operational disruption and eliminating the need to pay a ransom.

Don’t leave your data at risk

Strengthen your bank’s ransomware defenses with dependable data BC/DR solutions from Datto. Explore Datto backup solutions or schedule a call with one of our data protection specialists at Invenio IT for more information. You can also reach us by calling (646) 395-1170 or emailing success@invenioIT.com.

Easy Checklist for Disaster Recovery Plans (Updated for 2026)

Tracy Rock — Thu, 09 Apr 2026 09:25:17 +0000

Is your business prepared for an operational disruption? Use this simple checklist for disaster recovery plans to ensure that you’re properly documenting the protocols and systems your organization needs to recover.

Further below, you’ll also find a sample outline of a bank disaster recovery plan as a framework for structuring your own plan, regardless of industry.

15-Point Checklist for Disaster Recovery Plans

1. Identify key personnel.

In some disaster recovery plan examples, this is referred to as a “mission-critical hierarchy of personnel functions.” In short, it’s a list of key stakeholders, executives and managers, along with their disaster-response responsibilities.

This section is usually the first in the DRP. It outlines the people who oversee the organization’s disaster recovery planning and/or those who need to remain in close communication when a disaster occurs.

Here’s a quick checklist of questions that this section should answer:

Who wrote the disaster recovery plan? Who is on the disaster recovery team? How should they be contacted in an emergency?
Which stakeholders need to be updated on the status of recovery efforts?
Who will monitor the impact on sales and cash flow?
Who will make decisions on business relocation?
Who has access to secure systems or the ability to grant authorization to others?
What tasks need to be completed in each department to restore operations ASAP?

Decisions like these will need to be made immediately, so your recovery plan should spell out exactly who will make them and how.

2. Define plan objectives.

Not all disaster recovery plans have the same goals. For example, it’s extremely common for IT to implement its own DRP, focused strictly on IT systems, such as networking, data storage, backup and so on. This can be a good strategy, as long as there are additional disaster recovery plans created for other divisions of the business.

The “objectives” section of your DRP makes it clear what the plan is focused on. It states which areas of the business the planning applies to, i.e. the entire organization or individual departments such as IT. (Below, we identify an additional section where you’ll document recovery-specific objectives, such as RTO and RPO.)

Checklist:

What is the specific goal of this disaster recovery plan?
Why is it needed?
Which systems, divisions or business units does the plan apply to?
How will the DRP actually help the business recover from a disaster?

In addition to identifying the scope (and limitations) of the plan, the objectives section also serves as a brief explanation of the importance of disaster recovery planning, as it relates to specific operational risks and vulnerabilities. This can be useful for demonstrating to decision-makers the need for further DR investments.

3. Document safety measures.

When you search Google for “checklist for disaster recovery plan,” it’s surprising how many lists neglect to mention the risk of actual human harm in a disaster. If your plan is focused on the organization as a whole (rather than specific systems), then you must have a plan for how you’ll take care of employees.

Aside from the ethical concerns, the safety of your workforce is vital to your ability to maintain continuity. Without safe and healthy workers, the business will not be able to recover. So it’s critical that your disaster recovery plan outlines how your employees will be kept safe.

Checklist:

Where should employees shelter if caught in a natural disaster such as a tornado?
What about active-shooter situations or terrorism? How should employees respond? What should they do?
What if there are widespread injuries at the office?
Where are medical supplies kept? Who has access to them, and how can they be distributed to those who need them?
How will you obtain urgent medical care for the more serious emergencies?
Is there a point-person who will contact authorities and oversee the situation?

Tip: In terms of disaster recovery planning, businesses must think beyond the mere first-aid kit. If you want to make your people a priority, then there must be thorough planning in place to ensure the well-being of employees in every possible disaster scenario.

4. Assess risks.

You can’t plan to recover from a disaster if you don’t know what those disasters will look like. Much like a business continuity plan, your disaster recovery plan needs to include a thorough assessment of the most likely incidents to disrupt operations.

This risk assessment is essential for understanding all plausible disaster scenarios on a deeper level. It’s not enough to simply say, “This is what we will do in an earthquake.” The DRP should outline each individual risk that the earthquake poses: destruction of facilities, loss of servers and data, physical harm to people and so on.

Checklist:

Which disasters pose a threat to operations?
What do those disasters actually look like? What would happen? Why are they being listed here?
On a scale of 1 to 5, how likely is each scenario? How should the disasters be prioritized?
Have you considered all possible disasters, including those that are unique to your organization or area?

5. Define business impact.

Depending on the scope of your disaster recovery plan, you may also need to include a “business impact analysis” here. (This is a common section in business continuity plans as well.) An impact analysis helps to define how each of the possible disasters would adversely affect operations.

So for example, in the risk assessment, maybe you defined ransomware as a form of malware that encrypts your data. In the impact analysis, you spell out the actual impact: loss of data, idled workers due to computers not being accessible, information systems going offline and so on.

Checklist:

Which business processes are affected by each type of disaster?
How are operations disrupted?
What is the impact on productivity, service availability, revenue, workforce, company reputation, etc.?
What is the projected cost of those disruptions?

That last question is usually one of the most important for determining the severity of each disaster. Defining the financial impact on an hourly or daily rate helps to provide clarity about which disasters are most destructive and thus also how recovery planning should be prioritized.

6. Outline steps for prevention and mitigation.

The “best” disaster scenarios are those that can be averted altogether. While that may not always be possible, preventative planning within your DRP can help to ensure a much smoother recovery.

Consider a ransomware attack that is stopped at the first infected device, before it spreads across the network. Or a hurricane that destroys an office building but not operations, because they were relocated days before the storm arrived. Those are prime examples of how prevention and mitigation can greatly reduce the impact of an event.

Checklist:

What measures or systems can help to avoid the disasters outlined in your risk assessment?
When disasters do occur, how can their impact be mitigated?
What should be the immediate response to each type of event? How can those steps help to prevent a full-blown disaster?
Which mitigation procedures will help accelerate recovery efforts?

7. Define recovery protocols and systems.

This is the real meat of your disaster recovery plan. This section outlines the full procedures and systems for recovering from each of the disasters you’ve listed above.

The level of granularity here will vary depending on the plan’s objectives. But ideally, every possible disruptive event should be accompanied by specific instructions for overcoming the incident and recovering all affected operations back to their normal state.

Checklist:

What steps must be followed to fully restore operations?
Which recovery systems need to be leveraged, and how?
What are the specific procedures for each potential disaster?
Who will perform those procedures?

8. Identify backup locations or remote work plans.

A disaster recovery plan must take into consideration the risk of losing an entire work site due to fire, natural disaster, public health crisis or other events. If there is no backup location available or a system in place for employees to work remotely, then it will be far more challenging to recover operations.

For most businesses, this doesn’t mean paying rent on an additional space that you’d only use in an emergency. But you do need to evaluate what your options are. Consider where your staff will work if the office cannot be opened.

Checklist:

What is the plan for relocating the operations if the primary site is destroyed or inaccessible?
Does the organization have other locations that could be used by dislocated teams in an emergency?
Is technology in place to allow people to work remotely?
Can other facilities be quickly secured if needed? How?

Tip: Consider creating a separate, evolving checklist that identifies potential available real estate that would allow the business to relocate immediately, if necessary. That means making phone calls and remaining in close contact with real estate professionals who could get you into a new space right away.

9. Determine equipment needs.

You’re operating on a limited, mission-critical staff. How many computers will you need? How many mobile phones? Who gets them, and from where?

To recover operations during a disruption, you’ll need to have the necessary equipment – especially if the business is forced to relocate. Defining these resources in your disaster recovery plan helps to ensure that the business will have the backup equipment it needs (or will be able to quickly obtain it) to maintain continuity.

Checklist:

Every business should already have up-to-date inventories of all office equipment, including computers, IT infrastructure, furniture and other assets.
Your disaster recovery plan should identify how you’ll reproduce that entire inventory after a major disaster, as well as a smaller inventory of absolute mission-critical equipment.
If backup equipment isn’t readily available, how will it be acquired? What are the fastest methods and who will oversee these efforts?

10. Identify data backup and recovery systems.

Data backups are a critical component of any disaster recovery plan. Most organizations today are heavily reliant on their data for numerous aspects of their operations: files, emails, databases, applications and so on. This data must be backed up constantly, so it can be easily restored after a disaster. Solutions like Datto SIRIS provide comprehensive protection with features like hybrid-cloud backups and instant virtualization to ensure continuity. (You can also check Datto SIRIS pricing to explore how this system fits into your disaster recovery strategy.)

At a time when ransomware poses a constant threat to businesses’ data, having a dependable backup system is a must. This system should be thoroughly defined within the DRP, along with procedures for recovery.

Checklist:

Consider how and where you are backing up your data. Is it on-site? In the cloud? Is the data encrypted?
How quickly can it be restored? What is the risk of data being compromised or corrupted during recovery?
How frequently should data be backed up?
How long should backups be retained?
How quickly should data be recovered from backup after loss has occurred? (See additional RTO planning below.)

Reminder: Data is your business’s most valuable asset and the most important component

11. Document communication plans.

Recovering after a disaster is impossible if your people can’t communicate with each other or don’t know how. Consider not only how people will communicate but also with whom.

Checklist:

What devices will mission-critical teams use?
How will you communicate with your workforce if email and phones are offline?
Who should employees contact to confirm the status of the business or find out what’s happening?
Who will stakeholders need to contact to execute the disaster recovery plan?

12. Protect hard-copy documents.

Even in today’s digital-centric world, most businesses still have mountains of important paper documents stored in boxes and file cabinets. You need to plan ahead for how you’ll protect, copy, recover and/or reproduce these documents should you suddenly lose access to them.

Checklist:

Where will physical documents be stored? On-site, a remote location or both?
Which documents require backup copies and where will those be kept?
How quickly can backup documents be secured if they are needed in an emergency?
Who is in charge of document management, particularly in a disaster situation?

13. Establish external outreach parameters.

In addition to communicating internally, you may need to reach out to media outlets, clients, customers and vendors. How should your company approach that communication? Which parties should be prioritized? What core messages will you need to communicate after a crisis has disrupted your business?

Things to consider:

Many disaster recovery audit checklists include the need for a “crisis media kit.” This is a good idea if you believe you’ll need to send out a press release or other urgent communications.
Don’t put this off. Nobody wants to be writing a press release after a disaster has just devastated the business. Consider having one pre-written, templated and ready to blast when needed. (If you’ve done your job creating a disaster recovery plan, then you already know what this release will need to say – almost regardless of what kind of disaster you’re facing.)

14. Set recovery objectives (RPO and RTO).

Should a recovery take two hours or two days? Can your business survive that amount of downtime? In any disaster recovery plan, it’s not enough to simply define what the recovery entails. To meet continuity objectives, the plan must also set expectations for how quickly the recovery should be completed.

In IT, for example, it’s common to define specific objectives for recovering data after a data-loss event. A recovery point objective (RPO) designates the maximum desired age of a backup, and a recovery time objective (RTO) specifies how quickly the data should be recovered. Similar principles can be applied to other recovery efforts as well.

Checklist:

How quickly should each disaster incident be resolved?
What is the expected timeframe for each type of recovery? How many hours?
What are the time thresholds that should not be exceeded in order to prevent a more catastrophic outcome?
Are there any extra steps that will ensure those objectives are met?

15. Reevaluate and update the plan.

Disaster preparedness is a work in progress. You need to constantly reevaluate your plan to ensure that you’re planning for all possible scenarios.

When creating your own checklist for a disaster recovery plan, keep in mind that any documentation is likely to become outdated in just a few months.
Your plan should outline a timeline for how often it’s updated and by whom.

Sample Plan Outline

Bank Disaster Recovery Plan: A Template

A bank disaster recovery plan helps to ensure that a financial institution can quickly recover from a disruption with minimal impact on bank operations or customers. The plan outlines the steps for responding to different types of disasters and restoring critical systems within IT or other bank operations.

DRPs are vital for every company. But in the financial services sector, they’re required. Due to the sensitive nature of the data they handle, and the potential for incidents to disrupt wider financial markets, financial institutions must comply with strict guidelines for disaster planning. The following template provides a basic outline of what should be included in a bank disaster recovery plan.

1. Plan Objective

· Purpose & goals of the plan

· Scope & limitations

2. Risk Assessment

· Identification of potential disasters

· Assessment of bank vulnerabilities

3. Disaster Impact Analysis

· Measurable impact of disruptions

· Potential financial losses & costs

4. Emergency Response

· Immediate actions

· Safety & evacuation plans

5. Disaster Recovery Procedures

· Steps for recovering the bank’s critical systems

· Restoration of bank operations

6. Data Backup & Recovery

· Data backup objectives (RPO, RTO, etc.)

· Backup and recovery procedures

7. IT Systems & Infrastructure

· Technology inventory & assessment

· Recovery protocols & redundancies

8. Communication Plan

· Internal & external communication plans

· Media relations

9. Regulatory Compliance

· Relevant financial sector guidelines

· Required documentation

10. Testing & Plan Maintenance

· IT system & backup testing

· Testing of recovery procedures

11. Appendices

· Relevant contact lists

· System- or department-specific procedures

· Supporting documentation

Using this template as a foundation

Remember, this DRP outline is only a basic template for banks. Actual planning documentation for each financial institution can vary widely in scope and structure. The sections included in the recovery plan will also depend on the structure of the bank’s continuity plan, which is often a separate, more comprehensive document.

Related reading:

- Business Continuity Management (BCM): Framework, Program Structure & Best Practices

Bank Business Continuity Plan Checklist

Additional Resources

Keep in mind that the checklist above is only a starting point. For more guidance on developing your own planning documents, we recommend exploring additional resources and recommendations provided by the following government agencies:

IT Disaster Recovery Plan strategies via Ready.gov and the U.S. Department of Homeland Security. This page provides an introduction to DR planning in IT environments, along with links to several additional resources.
Guide to IT testing & contingency planning by the National Institute of Standards and Technology (NIST). This publication is designed to help organizations design and develop testing and exercises to prepare for adverse events affecting IT systems.

Frequently Asked Questions

1. What should a disaster recovery plan include?

A disaster recovery plan should include the procedures for recovering business-critical systems or operations that have been disrupted or destroyed. The plan should outline the steps for recovery and provide guidelines for how quickly those steps should be completed.

2. What should be the first item on a disaster recovery plan checklist?

A description of the plan’s scope and objectives are typically the first items on a disaster recovery plan checklist. However, the most important section is the outline of recovery procedures that should be followed after various types of disasters.

3. How do you build a disaster recovery plan?

A simple way to start building a disaster recovery plan is to create a checklist identifying the most important sections to include. For most plans, this should include an assessment of potential risks and disasters, their potential impact on the business and protocols for recovering from those disruptions.

Conclusion

Planning for disaster is essential for businesses of all sizes, across every industry. Although our checklist for disaster recovery plans above is intended only as a rough guide, it provides a foundation on which your organization can build a more comprehensive plan for responding to disruptions. If you’re building a DRP from scratch, consider consulting with a disaster planning professional who can help you create a comprehensive, individualized plan for your business.

Protect Your Critical Data from Disaster

See how today’s best data backup and disaster recovery solutions can protect your organization from a data-loss disaster. Request a free demo or schedule a meeting to speak to our business continuity experts at Invenio IT today. Call (646) 395-1170 or email success@invenioIT.com.

Explained: The Difference Between a Disaster Recovery Plan and a Business Continuity Plan

Dale Shulmistra — Tue, 24 Mar 2026 09:20:31 +0000

While disaster recovery plans focus on restoring IT systems and data, business continuity plans address how the entire organization continues operating during disruptions.

More precisely, the key difference between a disaster recovery plan (DRP) and a business continuity plan (BCP) is that a DRP is focused on recovering critical systems after a disruption, whereas a BCP is focused on keeping the business running.

However, both plans can overlap, and they are sometimes incorporated together within a company’s larger disaster-planning documentation. In this post, we highlight the key differences between a BCP vs. a DRP and why they’re both important.

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What is the Difference Between Business Continuity and Disaster Recovery?

A business continuity plan aims to prevent and minimize an interruption to business operations. A disaster recovery plan focuses more specifically on the response and recovery stages of a disaster, especially in regard to IT systems.

To clarify what makes these plans unique, let’s look at each of them individually:

Business Continuity Plan (BCP)

Disaster Recovery Plan (DRP)

Definition: A planning document comprised of protocols and systems designed to ensure that a business can continue operating during a disruptive event.

Focus: Operational continuity

Objective: To prevent and minimize operational disruptions.

Typical ownership: Executive leadership and business unit managers

When it’s used: Before, during and after a disruption to ensure essential business functions continue running.

Sample: Business continuity plan template

Definition: A planning document comprised of procedures and technologies that enable a business to recover from an operational disruption.

Focus: Operational/system recovery

Objective: To recover from disruptions and/or restore critical IT systems.

Typical ownership: IT leadership and technical operations teams.

When it’s used: Immediately following a disaster to restore critical data and IT systems

Sample: Server disaster recovery plan template

In short, a BCP aims to answer the question, “How can we keep the business running if disaster strikes?” A DRP answers the question, “How do we recover from a disaster?”

How to Distinguish Between DR vs. BC Planning

Scope: A BCP is broadly focused on maintaining all essential business functions after a disruption, while a DRP focuses specifically on recovery (especially within IT systems).
Emergency focus: A BCP often focuses largely on operational risks, whereas a DRP can also include emergency preparedness and safety measures for employees, such as drills or evacuation procedures.
Protocol objectives: Business continuity plans outline the measures for minimizing downtime, whereas disaster recovery plans outline the procedures for recovering systems or functions.

Which One Do You Need?

Most organizations need both. If you only have a Disaster Recovery Plan, your IT systems might get restored, but your overall business operations could still be derailed by an unexpected disruption. Conversely, having a Business Continuity Plan without a DRP means you have operational strategies in place, but without a technical roadmap to restore your critical systems, your actual recovery will be painfully slow.

Why You Need a BCP and DRP

Businesses face a wide variety of threats that can impede their ability to function. At any given moment, an unexpected disruption could make it difficult for your business to function, which is precisely why business continuity and disaster recovery planning are both critical. Both types of plans serve reciprocal roles, ensuring that a company can rapidly recover from adverse events and keep operations running.

Threats to Modern Businesses

Today’s businesses face a wide range of threats to their operations. Without adequate planning, any of these common threats can result in costly disruptions:

IT system failure
Data loss
Ransomware & cyberattacks
Malware infection
Fires
Floods, severe weather & natural disasters
Internal sabotage

Statistics on Business Disasters & Impact

When businesses neglect to plan for disasters, they run the risk of financial losses, reputational damage and even permanent closures. The following business continuity statistics underscore the importance of having both a disaster recovery plan and business continuity plan.

According to ITIC’s 2024 Hourly Cost of Downtime Survey, over 90% of midsize and large enterprises report that a single hour of downtime from unplanned disruptions costs their organization more than $300,000, with 41% stating costs exceed $1 million per hour. .

60% of organizations experienced downtime at least once from 2020 to 2023, according to a study conducted by Uptime Institute. Among those businesses, more than a third rated their outage as significant, serious or severe.
25% of businesses are forced to close permanently after a major disaster, according to the U.S. Small Business Administration.

Almost half of small businesses that experience a disaster never reopen, and an additional 29% close within 2 years after the event, according to the Federal Emergency Management Agency (FEMA)..

Overlaps in Business Continuity and Disaster Recovery Planning

While there are fundamental differences between a business continuity plan and a disaster recovery plan, the two documents play a connected role in maintaining operational continuity. After all, a business can’t continue operating if it can’t successfully recover from a disruption.

That’s why a comprehensive business continuity plan often must include a disaster recovery plan within the same documentation. Think of the BCP as the master document that encompasses all aspects of your disaster prevention, mitigation and response, including both tech-focused and non-tech recovery protocols. Maintaining continuity is impossible without recovery.

Now, let’s take a closer look at each type of plan.

1) Overview of Business Continuity Planning

A business continuity plan is a comprehensive document designed to help keep your business up and running when you experience a disaster. It focuses on your business as a whole, while also drilling down to specific scenarios that create risks for your operations.

Assessing Risks & Impact

Business continuity planning revolves around the critical operations that your organization needs to get back to business after a disruption. It identifies threats to these operations and outlines a plan to prevent and mitigate them. If your team follows the plan appropriately, you should be able to provide services to customers during or immediately after a disaster with minimal downtime or service interruptions.

Identifying Protocols & Resources for Continuity

Your business continuity plan should also identify what your organization needs to resume normal operations. Some examples exclude:

Restoration of data or IT systems
Critical supplies
Employee contact information
Lists of crucial business functions
Copies of important records

To be clear, these are the bare essentials that you need to recover quickly from a disaster. Most organizations will need to leverage robust business continuity services to ensure they can keep critical operations running through a disruption.

Managing Every Aspect of Disaster Preparedness

Your BCP should serve as the single, multifaceted document for managing all ends of disaster preparedness at your organization:

Prevention: Steps and systems to prevent disasters from occurring in the first place.
Mitigation: Processes to limit the impact of disasters when they occur.
Recovery: Protocols for restoring operations as quickly as possible to limit downtime or other adverse consequences.

These are broad categories that need to be defined individually for each possible disaster scenario.

Writing Your Business Continuity Plan

To develop a business continuity plan, you need to identify the unique risks for your organization and how those events will impact the business in terms of downtime, costs and reputational damage.

As such, a typical business continuity plan usually requires the following sections:

Contact information: Contact details for those who developed the BCP and key recovery personnel within each department
Plan objectives: The overall objective for the plan, what it aims to accomplish, why it’s critical and what areas it focuses on
Risk assessment: A thorough evaluation of disaster scenarios that could disrupt your operations, prioritized by likelihood and/or severity of impact
Impact analysis: Specific outcomes for each disaster scenario in terms of how much they negatively impact the business, including the costs for idle workers, recovery and hardware repair or replacement
Prevention: Steps and systems for preventing each disaster, such as the implementation of antimalware systems to prevent certain cyberattacks
Response: How the business should respond to each disaster to minimize impact and initiate a rapid recovery, such as restoring backups after a data loss
Areas for improvement: Any weaknesses identified in the creation of the BCP, along with recommended solutions and steps for filling these holes
Contingencies: A list of secondary backup assets and/or protocols, such as a backup office location or equipment
Communication: Protocols for staying in communication with recovery personnel and all employees, such as a text alert system, company extranet or calling trees

Remember that your BCP is an evolving document that you should update periodically to reassess risks and incorporate any changes that you’ve made.

2) Overview of Disaster Recovery Planning

You can think of a disaster recovery plan as a more granular component of your business continuity plan. Additionally, a DRP will often focus narrowly on your business’s data and information systems.

Prioritizing IT Recovery

Data loss, hardware failure and system outages are prime examples of common, severe threats for virtually every business. A disaster recovery plan can help to safeguard these systems and ensure you can recover them rapidly after a disaster. Depending on the scope of the DR plan, the protocols could outline everything from recovering a small data set to the loss of an entire data center.

Expanding the Definition of Disaster Recovery Planning

A disaster recovery plan can also refer to protocols that are outside the realm of IT. For example, a DRP can outline steps for securing a secondary business location. It could also include guidance for how to restore communication between emergency staff if primary lines of communication are unavailable.

In other words, disaster recovery planning does not always have to be strictly IT-focused, though it often is. If your IT personnel are creating an IT-focused disaster recovery plan, make sure that all non-IT recovery protocols are included within the larger BCP documentation.

What to Include in a Disaster Recovery Plan

A disaster recovery plan is essentially the “Response” component of your business continuity plan. It encompasses all the procedures, technologies and objectives necessary for completing a timely recovery after a disaster. This recovery could pertain to cyberattacks, lost data, server outages, application failures and numerous other incidents.

Here are some crucial points to cover within your disaster recovery plan:

Recovery technologies: This covers all systems currently implemented—or those that should be—to support the recovery process. An example is a data backup and disaster recovery system that enables you to recover critical files that have gone missing or large datasets that have been infected with ransomware.
Recovery Time Objective (RTO): RTO in disaster recovery planning refers to a desired timeframe for completing recovery, which you can apply to the business as a whole or individual layers of IT, like data recovery. For example, an RTO of 30 minutes would mean that your team should restore all data within 30 minutes after initiating recovery protocols.
Recovery Point Objective (RPO): The RPO refers to the desired recovery point for restoring data from a backup to minimize the amount of data loss. For instance, if your RPO is 6 hours, your last backup would never be more than 6 hours old, so the longer your RPO, the more data you might lose in the event of a disaster.
Recovery protocols: Your DRP should clearly define the roles of your recovery personnel so there’s no confusion and not a minute wasted when disaster strikes. In the case of a data recovery, you’ll need to identify who oversees it, what they do, who they communicate with, and how they share updates with other personnel.
Vendors, suppliers and other third parties: Identify the third parties that you need to contact if a disaster occurs, such as IT providers, telecommunications companies or other external providers that will support the recovery process. For example, in case of an Internet outage, your DRP should identify your Internet provider’s emergency contact information—ideally a specific point of contact—to ensure a faster resolution.
Recovery testing: Define how often and what method you’ll use to conduct periodic disaster recovery tests and mock disaster scenarios that confirm your recovery systems work as they should. You might perform a data recovery test to determine whether backups are readily available and you can restore them without integrity issues.

Like your business continuity plan, you should also periodically update your disaster recovery plan to ensure the information is still accurate.

Backup & Disaster Recovery

Data backup plays a central role within disaster recovery planning. As such, a DRP should outline the necessary systems and strategies for recovering critical files after common data-loss incidents, such as cyberattacks, server failure or accidental deletion.

For example:

A disaster recovery plan might document the need to store backups at a secondary location to ensure an offsite disaster recovery when on-premises systems are unavailable. The plan should also outline the process for managing, testing and restoring those backups.
In the case of hybrid-cloud backup systems, you may have several recovery options available: local, cloud, hybrid, virtualization, bare metal restore and so on. The procedures for each method should be documented in the DRP.

Newer backup systems offer these diverse recovery options to address every possible data-loss scenario. Systems like Datto ALTO are designed specifically for small businesses with more limited budgets to achieve enterprise-grade protection at a more affordable price point. (Explore Datto ALTO pricing to see how it fits within your disaster recovery strategy.)

Frequently Asked Questions about Business Continuity and Disaster Recovery

1) What’s the main difference between a disaster recovery plan and a business continuity plan?

A disaster recovery plan focuses on restoring IT systems and data, while a business continuity plan focuses on keeping business operations running during disruptions.

2) Which comes first, business continuity or disaster recovery?

Business continuity planning comes first because it’s the foundation of a business’s disaster planning. There’s no chicken or the egg mystery here—you can’t effectively plan your disaster recovery until you know what disasters you might experience. Continuity planning will identify the primary threats to a business through a risk assessment and impact analysis, and you can use those assessments to inform your IT disaster recovery planning.

3) What is an example of a business continuity strategy?

One example of a business continuity strategy is creating frequent data backups that can be restored in case files are deleted, destroyed or lost. This strategy involves using a dependable business continuity and disaster recovery (BC/DR) system that enables frequent backups and prompt restore methods.

4) What is business continuity and disaster recovery?

Business continuity and disaster recovery (or BC/DR) refers to the systems and procedures that help a business continue operating through a disaster. The term is commonly used in reference to data backup and recovery systems, but it can apply to other IT systems as well.

5) Do small businesses need both disaster recovery and business continuity plans?

Yes. Even small businesses benefit from having both, as downtime, data loss, and cyber incidents can impact organizations of any size.

6) How do disaster recovery and business continuity work together?

Disaster recovery supports business continuity by restoring systems and data, while business continuity ensures operations can continue during and after the recovery process.

7) How does disaster recovery planning differ from business continuity planning?

Business continuity planning focuses on keeping your overall business operations running during a disruption. Disaster recovery planning focuses specifically on the technical side: restoring your critical IT systems and data after an incident occurs.

Conclusion

Being prepared for a disaster is one of the most important things a business can do to prevent costly downtime—or permanent closure—when a disruptive incident occurs. By understanding the fundamental differences between a disaster recovery plan and a business continuity plan, you can effectively document the strategies and procedures your organization needs to minimize any disruption.

Protect Your Operations with the Right Technology

Our experts at Invenio IT can help you identify the technology your organization needs for business continuity, data backups and disaster recovery. Schedule a call with one of our data protection specialists to explore Datto backup options like Datto ALTO or Datto SIRIS. For more information, call our team at (646) 395-1170 or email success@invenioIT.com.