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Measuring the Reputation Cost of Data Breach

Posted on: May 19th, 2015 by Daniella Lundsberg

The security landscape is constantly evolving, with businesses today fighting a cybercrime ecosystem that encompasses global players. Hackers now invest as much – if not more – toward exposing vulnerabilities as companies do in securing them. Assuming the right solutions are in place, most enterprises can stay under the radar and avoid a major breach. But there’s never a guarantee, and recent exposures at companies like Home Depot, Sony, and Target offer valuable insight that can help us all plan for and better comprehend the magnitude of loss potential.

The initial breach primarily affects the consumer, who faces bank-imposed limits and time-consuming card cancellations. For the business itself, along with that data loss, one of the greatest risks is long-term damage to the brand’s reputation. A trusted and established reputation can take decades to build – and mere seconds to destroy. Security breaches force companies to invest heavily in resources aimed at salvaging employee morale, stock valuation, consumer trust and loyalty. When customers are afraid to transact with a business, this also naturally puts a strain on traffic and revenue. For companies that survive a scandal, the fallout and ramifications can still take months to years to reconcile.

The extent of the damage and the time it takes to reinvigorate a brand’s reputation is largely dependent on the breadth of exposure and the manner in which the crisis is handled. Data breaches are one of three occurrences to have the greatest impact on brand reputation, according to a survey conducted by Ponemon Institute and sponsored by Experian’s Data Breach Resolution unit entitled “The Aftermath of a Mega Data Breach: Consumer Sentiment”. In this survey, data breach was ranked up with environmental disasters and poor customer service.

When evaluating potential risk, planning for crisis resolution, and assessing the cost of an enterprise security solution, tangible assets alone aren’t enough. Decision makers must also estimate the monetary value of, and the earning potential in, their brand reputation. They need to ask themselves: “How much is our brand reputation worth?”

Ready to for a security assessment? Contact the American Digital security team today.

Progressive Madison Chooses Innovative Tech

Posted on: March 18th, 2015 by Daniella Lundsberg

American Digital’s strength is its ability to understand our customer’s immediate and future data center needs. It then delivers end-to-end solutions to meet those needs. Recently, the company was able to help the city of Madison, Wisconsin achieve improved service levels and increase their data storage expansion capabilities.

The City of Madison maintains the operations of 38 departments overseeing this bustling, capital city. Two separately located data centers control the nerve center of communications among these vital departments, such as, Public Works, Transportation, Fire, Police and the Mayor’s Office. These data centers are both production sites, allowing for Business Continuity and Disaster Recovery. The ability to retrieve and provide current data is vital to the proper operations of all the departments.

Virtualization

Like many forward thinking organizations, the City of Madison had implemented virtualization as a way to boost application availability, improve hardware utilization and streamline its IT infrastructure. Over the past 7 years, the city implemented close to 90 virtual servers, with 20 host servers – 13 of which are VMware ESX hosts.

Chris Luedert, Madison’s IT Manager, knew they needed a storage system that could easily support their critical applications on SQL databases while being flexible, easy to manage and most importantly, able to address scaling to keep up with increasing storage demands. Luedert explained, “In the past, we had mostly Direct Attached (DA) storage and with that, we kept running out of storage in a 6-12 month time span.”

American Digital sales and solution architects met with Luedert to discuss the features and benefits of the solution – HP StorageWorks P4000 G2 SAN. The American Digital Solution Architects discussed how the Storage Clustering would allow them to consolidate multiple storage nodes into pools of storage. All available capacity and performance is combined and available to every volume in the cluster. In this way, as storage needs increase, the HP P4000 G2 could scale performance and capacity on-line.

Cost-efficient Storage Solution

For an entire network of city departments, minimal down-time, higher service levels and cost savings are critical factors to ensure smooth operations of city business. American Digital was able to assist the City of Madison by implementing the HP P4000 SAN solution with fiber connections in their two main data centers. The result was a cost-efficient, scalable storage solution that allows for much improved expansion capabilities and avoids expensive upgrades. The customer was pleased to have achieved true cost savings, minimized down-time and improvement of their File & Print service levels for their users. IT Manager, Chris Luedert commented, “We couldn’t be more pleased with the new Storage Solution or with American Digital. Whenever we had a need, their response was immediate and thorough.”

To learn more about American Digital and its solutions, visit American Digital’s case studies.

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