SOURCE: Data Deposit Box

March 27, 2008 09:37 ET

As Businesses Go Paperless, Owners Face New Threats, Decisions

Online Storage Industry Grows Rapidly as Business Owners Look for Protection

TORONTO--(Marketwire - March 27, 2008) - It's no secret that small businesses face the threat of failure from many directions. But as these businesses make the move toward a paperless office, new threats appear by the day in the form of lost files, corrupted hard drives and data destruction. Business owners are now faced with new questions: what if a hard drive crashes and all of the files are lost? What if someone accidentally deletes a document necessary for regulatory compliance? What if I lose my laptop? Although many are still complacent about data storage and backup, small business owners are becoming more aware of the potential risks of not backing up their data and are looking into online storage and backup options, which have become far more cost-effective and simple to use than traditional backup and storage methods.

The online storage industry as a whole is currently experiencing tremendous growth. According to a recent IDC report, revenue for this emerging market will reach $715 million by 2011, representing 33.3 percent compound annual growth between 2006 and 2011. With the FBI stating that a laptop is stolen every 53 seconds and the U.S. Bureau of Labor Statistics showing that 93 percent of all companies that experience "significant data loss" are out of business within five years, it's no wonder online backup is growing in popularity.

"Overall, people are becoming more and more comfortable with Web-based services, and access is more convenient, more secure and less expensive than in the past," said Jamie Brenzel, CEO of online data storage and backup service Data Deposit Box. "Take, for example, a doctor building a new practice -- he must still build his patient roster and handle insurance issues. But he's now working with electronic patient records, e-mails, insurance and billing files, and has to think about saving and securing all of that data to protect his practice and to meet HIPAA requirements as well. For reasons like these, people are starting to look at storage and backup not as a precaution they're not sure they can afford, but rather as a necessity they can't afford to do without."

According to Brenzel, geographic location is playing a part in the industry's growth, as well. Although Data Deposit Box, for example, is headquartered in Toronto, 70 percent of the company's clients are based in the U.S. and the largest growth has come from California, Florida, and Texas, areas that are prone to natural disasters like hurricanes, tornadoes and earthquakes. Brenzel says that regardless of a business owner's location, it is wise to consider working with an online backup provider that is not located in a disaster prone area.

"Online storage is a crucial part of a disaster recovery plan," Said Brenzel. "When a business owner knows that if a hurricane or earthquake strikes, they'll still be able to access their data remotely, it is a huge relief. They don't have to worry about those crucial days of downtime that lead to so many companies going out of business."

Data Deposit Box has outpaced the success of the industry as a whole, experiencing a 140 percent jump in customers over 2006. Data Deposit Box currently serves more than 30,000 customers, and the number continues to grow by five percent per month. Approximately half of Data Deposit Box customers are small business owners.

Data Deposit Box is a secure and comprehensive online data storage and backup service that enables users to affordably and simply backup, restore, and share information online for $2 per GB per month. Once the software is installed, it can be customized to backup as many or as few files as desired. Data Deposit Box then runs invisibly in the background and engages when the computer is connected to the Internet, continuously monitoring selected folders. Data Deposit Box is automatic -- when a change is detected, it is immediately extracted, compressed, encrypted and then securely transferred to a remote server. After creating a backup with Data Deposit Box, customers investing in this service can securely access files remotely from any web browser.

More information on Data Deposit Box can be found on www.datadepositbox.com.

About Data Deposit Box

Data Deposit Box™ is a comprehensive online backup service enabling everyday PC computer users to easily backup, restore, access, and share their online backup data. Our online backup software continuously monitors selected folders looking for changes. When a change is detected, it is immediately extracted, compressed, encrypted, and then securely transferred to our secure online backup data center. Data Deposit Box is owned and operated by Acpana Business Systems Inc. For more information on Data Deposit Box, please visit www.datadepositbox.com

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