How to Reduce Data Management Costs- Part Two

By: In: Data Backup & Archiving On: Jul 22, 2016
How to Reduce Data Management Costs- Part Two

In my last blog, I looked at some of the data management costs businesses face. Here are a few more hidden costs that go beyond primary storage expenses.

Seeing Double: The Soft Costs of Dirty Data

Hard dollar costs are one thing, but the soft costs of managing data are quite another. These costs are hard to quantify, yet no less important. TalentIQ estimates that up to 20% of corporate data is dirty, meaning “it is either duplicate, incorrect altogether or a combination of the two.” The source gives an example of an applicant tracking or customer relationship management system with 10 million profiles, and estimates the cleanup cost of 2 million questionable profiles to be between $40 million and $100 million.

TalentIQ notes that there can be other significant impacts of duplicate data, as well, such as damaging a company’s reputation or its relationships with customers. If used for marketing, for instance, duplicate profiles could lead to inaccurate market segmentation. In sales departments, it might lead salespeople to inadvertently call the same customer multiple times. Whether organizstions incur soft or hard costs of data management, neither scenario is particularly efficient or cost-effective.

Costs in the Data Life Cycle and Its Surrounding Ecosystem

Another TechTarget article describes the process of calculating the real cost of data storage. In short, it is about calculating what it takes “to store a single piece of data over its entire lifetime.” Included in this analysis is not just the underlying storage but the “ecosystem of information services” involved in the “life cycle cost of data storage.” Cost areas include data migration, data protection, archiving and long-term retention and disaster recovery.

Another way organisations might look at how much it costs to manage the data life cycle is to break data into its various costs: The cost to store it, the cost to access it, the cost to secure it, the cost to protect it, the cost to archive it, the cost to migrate it, as well as the cost to extract competitive differentiation and meaning from it. These costs can be tough to calculate, so to make this exercise more digestible and uncover new ways to reduce costs, look for experts versed in best practices and methodologies who can help the organisation effectively reduce its own data management burdens.

Learn more about the Hidden Costs of Data Management in our new guide, and take the interactive costs calculator quiz to find out how much you have left for innovation.

← The Consequences of Data Hoarding How to Reduce Data Management Costs: Part One →

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About the author

John Sharpe

John Sharpe is Director of Product Management for Iron Mountain’s Data Management business. In this role, he is responsible for developing and implementing strategies for backup, disaster recovery, and archiving. Creating new offerings that will allow our customers to extract more value from their media, whether new or archival, is central to Mr. Sharpe’s work. His primary overall objective is to ensure that Iron Mountain is a trusted information partner for our customers – and much more than a storage vendor. Mr. Sharpe has over 15 years of experience in engineering, corporate strategy, and product management. He holds a BA in computer science from Boston College and an MBA in finance from Yale.