Many businesses confidently say, “Our data is safe – it’s in the cloud.” But the truth is, the cloud isn’t a magical, untouchable place floating above the earth.
The “cloud” is, in reality, a data centre – a physical, brick-and-mortar building. And like any building, it’s not immune to risks. Fires, while rare, have occurred in high-profile data centres, sometimes burning for hours or even multiple times in a single year. The result? Significant downtime, disrupted operations and lost revenue. In other words, the only cloud you might see is your business’ time and money going up in smoke.
Data centres are big business
Australia already has more than 250 data centres, with that number set to grow rapidly as the federal government pushes its digital infrastructure expansion.
Until now, many of the impacts of data centres have been felt overseas, since Australia outsourced much of its digital storage and processing. But as the country ramps up its own digital infrastructure, these risks are coming closer to home.
Data centres are complex and highly variable in design. The rush to build them, combined with equipment that generates significant heat, makes fire prevention and cooling systems critical – and sometimes difficult to tailor in advance.
Protecting your business
So, how can your business stay resilient in the face of potential data centre downtime?
The first step is understanding where your data is stored and the infrastructure protecting it. Beyond that, cyber insurance is a key tool. It can help mitigate financial losses caused by data centre outages or cyber incidents, covering both direct costs and third-party liabilities. This lets you focus on your business’ recovery instead of scrambling to cover unexpected expenses.
At JMD Ross, we can help you choose the right policy to safeguard your data and give your business the protection it needs. It’s a smart first step in managing risk in the age of the cloud.
- John Duncan 0418 976 772 jgduncan@jmdross.com.au
- John Davaine 0413 610 523 jdavaine@jmdross.com.au
- Bhavesh Radiya 0414 247 055 bradiya@jmdross.com.au