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AT&T Study Finds Companies Aren't Prepared For Disasters

Slide Inc. Chairman and CEO Max Levchin has been thinking a lot these days about implementing a better disaster recovery plan as his fledgling media sharing site grows into a multibillion-dollar business.

Finding the cash to invest in servers and software isn't the issue for the 34-person startup. After all, Levchin co-founded PayPal with Peter Thiel, which they sold to eBay Inc. for $1.5 billion in 2002.

Executives at many small companies like Slide say they don't have the time or the resources to organize and build a detailed plan. "If I experiment by turning off all power in the data center for 24 hours, what would happen to Slide as a result wouldn't be pretty," Levchin said. "We would recover, but not smoothly."

Levchin isn't alone. AT&T Inc.'s fifth-annual Business Continuity Survey released Tuesday, which polled about 1,000 CIOs and IT executives at U.S. companies with more than $10 million in annual revenue, reveals that 28 percent do not have adequate plans in place to cope with natural or other disasters.

Nearly 30 percent of executives who participated in the survey said their company has suffered from a disaster. Eighty-one percent of executives said cyber security is part of their overall business plan for interruptions in 2006, up from 75 percent in 2005.

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