Even the backup generators
failed. Luckily, the company had an identical system on standby at another facility. A few
name changes and domain name system (DNS) entries later, the system was back online.
Weeks later, the owner started receiving hundreds of complaints from customers
who had ordered products but never received them. Upon investigation, he discovered
that neither the customers nor their orders were in the system. Frustrated, he called the
consulting company, demanding an explanation. It turned out that the system that was
colocated was only updated every 30 minutes. When the flood occurred and the standby
system was activated, the company ended up losing 20 minutes??™ worth of data. The ultimate
financial impact: $79,000, plus more than 200 customers who would never return.
The issue of data loss and its financial impact was never discussed. The consulting
company did its job, but no one even thought to question the risk of data loss.
The Price of Misunderstanding
The previous scenarios are just a few examples of what can happen when terms aren??™t
clearly defined.
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