Impact of Data Loss on Revenue Expected to Reach 1.6% by 2018, According to K logix, a Leading Data Security Company

A Company with Revenue of $1 Billion Today Can Expect to Lose $33 Million Annually by 2018

Brookline, MA – July 16, 2012 - K logix LLC, the leading data security company, today announced its new report “The Real Cost of Data Loss” which features findings from its research and analysis into the true impact of data loss on company revenue. The company found that in 2012 data leakage will impact .6% of revenue for the average company, and that number will continue to grow – by 2018 1.6% of revenue will be lost.

In its research, K logix calculated the impact of slow-drip data loss on revenue. Slow drip data loss is defined as the type of data loss that happens everyday – small hacks, unknown exposures and employee misuse of data.

K logix figures are based on the following:

1. The projected US GDP for the next several years;
2. Compared to reported industry estimates for the total cost of data loss each year for all US-based businesses.

The following outlines the impact of data loss on a $1 billion dollar company (2012 USD), which grows at 7.8% per year.

• In 2012 a $1 billion company can expect to lose .6 percent of revenue due to data loss. That means they will lose $6 million of revenue.
• By 2014 poor data security will impact .93% of revenue or more than $17 million.
• By 2018 poor data security will impact 1.6% of revenue or $33 million.
• The impact of data loss on revenue will nearly triple between 2012 and 2018.

“IT security executives often have a tough time getting budget and mindshare from executives to support safeguarding critical data and systems,” said Kevin West, CEO of K logix. “This is because the case for better data security often comes down to emotion – fear and anxiety. But business executives work hard to keep emotion out of decisions related to budgeting and forecasting. We are changing the discussion, arming our partners in IT security with real and proven numbers to help them make a business case for data security.”

Additional Information

• Please see the report “The Real Cost of Data Loss”, which compares revenue lost due to data loss to annual revenue growth. It is posted at

About K logix LLC
K logix, LLC is the leading data security company. We protect the information that drives your business. We incorporate proven best practices and technologies to safeguard your data against internal and external threats. Our proven security services help you discover and classify critical data, monitor information wherever it resides, inform stakeholders of risks and threats to your environment, and enforce the highest standards of protection. Companies such as John Hancock, Children’s Hospital of Boston, CVS Caremark, Xerox and Boston Scientific benefit from our information security services. For more information about K logix visit or call 888-731-2314.


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