56 percent of companies cite fear as main reason for refusing to move to digital storage

Contributed by Frederic Bourget (Wednesday, July 28, 2010) | Category : Email storage optimization

Even as email archiving solutions and other digital data storage systems prove to be invaluable assets to the companies using them, some organizations still refuse to fully leverage the technologies. For the most part, fear over data loss is the primary reason for this decision with 56 percent of companies citing it as the cause of their refusal, according to a study recently conducted by an information management company.

Some experts believed financial restrictions were preventing companies from fully moving their data storage operations to computers. Even with 25 percent of respondents reporting a lack of funds has delayed the move, organizations are so concerned with data loss, some refuse to even consider the transition.

This is especially odd because email archiving has been cited for improving efficiency of companies using it. Furthermore, with most regulatory authorities and legal cases requiring data to be presented in digital form rather than hard copy, companies refusing to digitize older data may receive hefty fines.

"As companies place more emphasis on streamlining processes and increasing efficiencies through technology, it's pretty surprising to learn the significant role fear still plays in preventing paperless initiatives from moving forward. Demonstrating how this type of project can result in a significant ROI with the right service provider is one way to overcome this resistance. It's also important to identify which departments have the greatest need and are most willing to utilize new technology in order to break through the fear barrier," said Paul Giardina, an information management expert.

The other side of the survey, which asked why companies were planning to transition to digital data, demonstrated the positives of digital storage. Thirty percent report they want their information available for employees or anyone else interested in seeing certain documents in an on-demand fashion.

Furthermore, 25 percent found moving to digital storage would boost data-leak prevention efforts, which may help alleviate the concerns of the 56 percent reporting fear over data loss has prevented the move.

Organizations that choose not to move data to computer system solutions may face substantial fines and other sanctions should they be involved in a lawsuit. The inability to quickly produce evidence to uphold constitutional rights is a punishable offense. Furthermore, if opponents in any litigation demand eDiscovery rather than paper documents, the offending party may face further punishment.