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One of the most important aspects of your website or web-hosting business security is the making of database backup periodically . No matter, if you have a little website or you have a web-hosting company with 1000 clients ,the making of a regular backup of your database is just mandatory . Think about what you are going to lose , if you make a backup once per week and if you don`t . The process of backing up your data , takes no more than 10 minutes, if you have the right tools . The process of restoring your database after HDD crash , successful hacking attempt or any other induced/non-induced malfunction is impossible without a backup and you must start from scratch(if it is even possible) . This security aspect is unduly neglected in most of the new web-host companies or new websites and because of that we are witnessing so much fly over night companies (excluding the scam companies) . You are starting a new web-hosting company and you are not going to waste your time making database backups , well guess what - you had already wasted your time by setting up your company . The reason for that is pretty simple - your company/website is nothing , without the correct security provision and regular backups . If the problem of not making a backup is because of the lack of storage and low budget , then you have budget options that you can choose .There is pretty fair number of Data-centers, which are offering cheap low class/budget dedicated servers and by cheap I mean 20$ per 2Tb at 100Mb/s Ports . So think about this important security aspect and give yourself an answer to this question - Do you want to keep your website/company running ? If your answer is yes , just make the easiest , but one of the most important parts of being a successful webmaster/web-host manager - Regular Backup of your stored information .
It is true that many web host companies do ignore two of the key thing that is security and backup.
They do so in order to save money and provide cheap web hosting. However, they are aware of the fact that it is important.

Competition is such that in order to sustain in the market; companies are ignoring these key elements.
Sooner or later they will realize that without proper security and backup, they won't be able to survive in the market.
I agree , that the competition is tough on the web-hosting markets . However every company , which is neglecting the security aspects of the web-hosting business, is making a favor to all other secured competitors . At one point of its existence , this company will be taken down by hackers or competitors and all efforts and work invested in this company will be lost . So is it cheaper to save from cutting down the security expenses .
I have doubts that even the most cheapskate Web Hosting Company will ignore its security and backup, everyone knows the importance of these two factors of running your company and you just can't afford to ignore them. Maybe they try to backup once a month with semi security, but they do know the vital part of these two.

If you don't have these two, you will automatically lose the competition since what the clients are looking for is NOT inside your company, they will look for another service providers.
I have witnessed a very big hosting provider going out of business two months ago . They were providing full range of web-hosting services and I can say , that they service performance was great . The reason for their complete collapse was outdated software . The software , that was the reason for the security breach is one of the most famous billing scripts and as you may know , all user information is usually available to the admin of the installed billing software . There was an update available on the official website of the software developer weeks before the security breach , but the described company staff was neglecting the updates or they just missed that one . Anyway , the result was complete overtake of the entire company database and 1000+clients account details directly into the hands of the ***** . There were speculations afterwards , that this was done by a direct competitor , but that is not so important in this discussion . The important part and the conclusions are , that even a bigger company could be taken down , if there is not enough security activities and all on-time updates are part of this activities .
Wow..that is why, I can't say this enough but CHECK OUT the personnel of the company before hiring them..just because of neglect of 1 personnel who forgot to update their software, The entire company collapsed..Max did the feds foud out who the ***** is? And who is responsible for the neglect?
Definitely security and backup systems are important to web hosting companies, since nowadays web client would really go for web host that will ensure that their data and information are private and in case of system crash downs we can always depend on the back up system that is prepared by the web host. So web hosting providers should market on the two features security and dependability (with the use of their backup systems).
Hey Apaullo . No , the ***** wasn`t found and there was no official information from the affected company , about an exact staff member who was responsible for the late update .
Took years to build and only 1 lousy update forgotten to click and the whole business collapsed...I bet the staff member will have sleepless nights coming his way..or maybe he is already sleeping permanently...tsk!
We actually experienced that from the company that I've been working for, where annual updates were performed by our technology team. Suddenly, with a single press of the wrong button all of our data were deleted from our shared drive. Whew! We started from scratch after that, with all our reports, tracker and memos. A security and backup system is really important in company so in scenarios like what I have mentioned, we always can retrieve our files.
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