How can IT industry survive in the Financial Crisis

Kingter · 16 Dec 08, 11:59

Fact sheet: IT Industry is affected by the Financial Crisis
On Sept 30 2008, Steve Ballmer, CEO of Microsoft spoke at a news conference in Norway "We have a lot of business with the corporate sector as well as with the consumer sector and whatever happens economically will certainly effect itself on Microsoft," he told Reuters.
"I think one has to anticipate that no company is immune to these issues," he said.

Meantime, stock price of Apple dropped 40% during 6 weeks. On the other hand, according to the Forrester’s survey(a research company based in USA), nearly 43% company cut down the budget on IT to deal with the financial crisis, Besides more than 49% IT dept in financial industry has the same planning.
Furthermore, from the majority IT Company’s third quarter Financial Report, we can see the whole industry meet a large decline in sales; it marks that the winter for IT industry coming.

Why financial crisis affect IT industry?
As we know, financial industry is the most important factor in the economy development. When financial organization suffered a great loss, the financial crisis will become credit crisis. It means currency circulation crisis, then it’s very difficult for us to borrow money from bank. Without the support from financial organizations, a large amount of companies will meet a financial shortage and have to cut down the budget.

Secondly, the inconsistent trend of financial situation that cause the shrinking discretionary spending. Corporations and individuals keep their pocket tight and wait and see; it is going to affect business investment concerning consumer spending on IT products

Thirdly, each industry is connected and affected by the economic structure. Since the bankruptcy of banks and financial organizations, how can IT industry be immune from this crisis but ignoring the interactional linkage?

Is there any solution for IT Firms to survive from the financial crisis?
The answer is absolutely yes. Those are “innovation in technology, switch or begin into new business sector” can definitely survive and grow their business, though the financial crisis took all us to a predicament.
Nevertheless, Crisis not only gives us challenge but also Opportunity. Challenge and Opportunity are twins and often appear simultaneously.
Let’s analyze the current situation in IT Industry. Since the shrinking purchase power, most companies would prefer to maintain and repair their IT hardware instead of buying new ones. For the IT service/Repair Firms, they will not decrease but get more business.
However, we can not ignore the crisis and wait passively. We have to expand our business arrange and survive from it.
For example, IT firms can invest and start new business in IT industry: computer application service, computer maintenance, data backup/recovery and etc.
Along with the proliferation of computers in business, the demand for various incidental IT services is increasing. Data recovery service is one of these incidental services and the most promising one.

Why Data Recovery is a most promising service for IT firms?
Firstly, Data loss not only means a large sum of cost wasting for companies. It also hampers routines and slows down development of enterprise. So if there is any way to rescue the data and avoid the loss, all companies are willing to accept and buy the service.
Secondly, IT firms have one unique advantage to start Data Recovery Service. Mostly, Data loss is always companied by computer crash. When Computer Crash happened, most clients wouldn’t realize that they need data recovery service. They prefer to call IT service companies to repair their computer. So if IT firms can provide data recovery service while clients need it, it is very favorable for both clients and IT firms.
Thirdly, data recovery is new and it has bright prospective future. If you heard of the JBL ad on airplane and know JBL starts providing Data Recovery Service, how will you response on that?

So for most IT firms, Data Recovery Service can be new revenue.

What Procedure is Data Recovery assignment involved?
The following three issues are critical for your data recovery business. They includes the first (Technical Know-How) and the last two (Marketing Plan and Financial Resources) followed only if you can handle the first.

Technical Know-How: As this industry is professional, specialized know-how is required to handle the varied types of data recovery assignments. Generally speaking, there is 3+1 work flow applicable to all data recovery case:

Of all the stages, Stage 3—data retrieval, is the most widely spread and long-running; all data recovery companies, even end users, by downloading software, can handle mission of this stage easily. But according to SalvationDATA experts only 30 to 40 percent of all data recovery cases are simply stage 3 cases. The left percentage requires an ability to handle with the stage 2 and stage plus 1 issue.

Stage 2, disk data extraction, is also widely known and adopted as “disk imaging” by data recovery services nowadays. But according to our company, SalvationDATA, most of our potential clients perform this important stage using ghosting tools designed for and work on good HDDs only, not the patient HDDs that are unstable or inaccessible because of media defects and instable head, which are common challenges of Stage 2 in practice. Even more, with those traditional imaging tools, the time involved and the ordinary user-level repeated-read access to the media bring a risk of damaging the disk and head, making data lost irretrievable.

Stage 1, drive diagnosis & restoration, is the primary stage in a broad sense data recovery flow but in fact deals with the deepest level in 3+1 broad sense data recovery flow. Unfortunately, Stage 1 is missing from most of the data services or even went unnoticed. It was simply done in a zigzag procedure and often incorrectly due to lack of proper tools. By so doing it was as good as putting away customers and profits. Our data has shown that up to 40% of data recovery cases have Stage 1 issues; and that IS NOT what going to happen that we can skip Stage 1 and perform Stage 2 and 3 and still to get certain percentage of data. You CAN NOT get anything in case you are not capable for the primary stage.

Plus 1, refers to Head or Platter Exchanger when encountered with motor seizure or head crash. This kind of problem often happens where the Drive is clicking or dropping from height. Concerning this issue, you need to replace the components and fix the mechanical malfunction first.

From above 3+1 work flow, you may get know the basic guidance of data recovery.

Then let’s move the following 2 factors which are relevant to your data recovery service.

Marketing Plan: It is the same as other service you are engaged in. It needs marketing plans and strategy. You should think more about customers’ convenience, satisfaction, price setting, and target market. If possible, you need advertising on different mediums too.

Financial Resources: Of course you need budget to get the business started before you benefit from your investment. You need facilities like a Clean Room and equipments to carry out the assignments. You also need to pay expensive technicians.

Supposing the Marketing and Financial investment are not the barriers to stop you, then you need think more about the facilities and data recovery equipments.

We have to admit that Data Recovery is a game for professionals and engineers to play, it is impossible to get started without any HDD Data Recovery Equipments provider.

SalvationDATA technology LLC, not unacquainted name in Data Recovery Industry, is the biggest and cost-effective solution provider all over the world. Their free technical support & remote assistance and free updates greatly enhance the confidence of the industry’s beginners. Thereby assist them to enter the industry as soon as possible.

This leading company has HD Doctor Suite, Data Compass. And HPE Pro. They are aiming at different stages of Data Recovery.

The HD Doctor Suite is aimed especially at Stage 1 (Drive In-depth diagnosis and Restoration ) and Data Compass at Stage 2 (disk data extraction) + Stage 3 (data retrieval) while HD HPE Pro at Plus 1 (Head or Platter Exchanger when encountered with motor seizure or head crash).
They also set up America Market Department and committed to providing with top service and support for clients from United States, Canada, Brazil, Mexico, Columbia and etc.

You can get more details at www.diskdatarecoverytools.com or contact at [email protected] .

P.S. This is one effective way for IT Industry to survive from the Financial Crisis, We hope it can offer some help for your information.