While everyone can read the statement “Single Point of Failure” and automatically know that it is a bad thing, most people do not fully realize how detrimental it can be to your business. If you ever only have a single resource, or supplier, you are held to the availability and readiness of that single resource. If your data is only ever stored in a single location, you at the mercy of any potential disaster that may happen at that location. For your business to be successful, you need consistent access to the resources that you need to provide your customers with your services and products without interruption. Ensuring that you never have a single point of failure, you greatly decrease the chances of that happening. To take that idea even further, you also want to remember that if you have 2 resources, and lose 1, you then have a single point of failure, until the other resource is backup. The best practice is to have at least 3 points of failure for all critical business resources, including data. Which means if you have your data being stored in a data center, you want to have it stored in 3 different data centers, not just on 3 different servers within the same data center. As then that data center is still a single point of failure. As you can see, ensuring that you do not have a single point of failure can become costly. Though if it is critical to your company, the cost is well worth it. However, there are cheaper IT service options such as performing your own local backups and then storing the backups in separate secure locations, such as a safety deposit box.