There was a time that data recovery brought in plenty of money. Indeed, the few firms that managed to enter the market made some decent cash. The trend appears to be reversing in recent times though. Most firms have also reported a decline in their revenues.
Our aim in the conversations that follow shall be to examine those reasons that inform the decline in the profitability of such firms.
WHY DATA RECOVERY IS NO LONGER A PROFITABLE BUSINESS
The influx of Too Many Players
The field of data recover was once a preserve of a few players. The main reasons underlying this is the fact that most could not afford the startup costs. Quite a few were also prohibited by the lack of the necessary technical expertise.
Of late though, the trend has been changing considerably. Many firms have been able to enter the market. At the same time, most have successfully acquired the necessary technical expertise. This has led to greatly reduced profit margins.
Fewer Incidences of Data Loss
Most modern machines are manufactured in such a way as to greatly minimize the likelihood of data recovery. Their data storage facilities are effectively equipped to greatly ward off unauthorized access. Further to these, quite a number of built-in mechanisms to retrieve any lost data.
Greatly reduced incidences of data loss mean that the need for data recovery services is also diminished in the first place. The attendant consequence of this is greatly reduced business opportunities on the part of data recovery experts.
Ready Availability of Do-it-yourself Data Recovery Tools
In the years past, most data recovery tools were too huge and complex to be operated by individuals. Only well-established companies had the resource base and technical know-how to acquire those pieces of equipment and do these jobs.
The same is not the case today. There are indeed numerous do-it-yourself data recovery tools on the market. They are not only cheaper but also easier to operate. This makes the leveraging of the services of data recovery firms unnecessary.
Increased Awareness of Data Recovery Skills
Just like there are tools these days that allow for data recovery right at the comfort of the home, the know-how to undertake such data recovery has also deepened. Most people prefer to tackle the problem on their own without invoking the assistance of data recovery experts.
The end result of this whole arrangement is that the business opportunities that arise in the field of data recovery have shrunk considerably.
Unlike in years past when most large organizations would outsource their data recovery tasks, they have increasingly preferred handling these chores in-house. This has mainly been informed by the fact that data is ordinarily sensitive.
As such, adequate steps have to be taken to prevent any unauthorized access which might be disparaging to the company at large. With most companies opting for vertical integration, fewer business opportunities are available to the stakeholders in the sector.
If you are already in the business, it is probably about time you sought to diversify. Just in case you were intending to venture into the business, you should seriously rethink that particular stand. You do not want to pour your money in a venture that will most likely leave you miserable.