Exclusive: Businesses face growing challenges in managing unstructured data
The rapid expansion of unstructured data is fundamentally reshaping how businesses "store, access, and protect their information" according to Andy Milburn, Regional Director for Datadobi in Asia Pacific.
As digital footprints grow, organisations are confronted with escalating complexities in governance, security, and cost management.
Milburn has been deeply involved in helping businesses turn chaotic data environments into structured, strategic assets.
The Growing Complexity of Data Management
One of the biggest hurdles businesses face is simply understanding where their unstructured data resides and what it contains, he explained during a recent interview.
Milburn pointed out that while organisations recognise the value of their data, they struggle to harness its full potential.
"Marc Benioff from Salesforce recently said that 'data is the new gold', and businesses are realising that they need to mine it effectively," he added.
Regulatory requirements have also added to the complexity. Industries such as financial services and healthcare must now adhere to stringent legal responsibilities regarding how and where data is stored and protected.
"Authorities are no longer allowing businesses to manage their data on their own terms," Milburn said. "Compliance and governance are massive concerns."
Challenges in Managing Unused Data
A striking reality is that as much as 90% of data within an organisation is unstructured, and a lot of that remains unused.
This dormant data not only occupies valuable storage space but also increases security risks. "Businesses can't just let their data keep growing indefinitely," Milburn warned.
"It's becoming more complex, more costly, and in some cases, physically unsustainable."
He highlighted an example from Sydney's central business district - where businesses have a cap on how much power they can draw from the grid.
"You can't just keep standing up racks with new disk drives indefinitely," he said. "At some point, you have to start making tough decisions about what stays and what goes."
However, the issue extends beyond storage.
Many organisations do not even know where all their data is stored, making it difficult to ensure its security. "If you don't know where your sensitive data is, you can't protect it properly," Milburn explained. "And with cyber threats on the rise, that's a risk no business can afford."
The Skills Gap in Data Science
A further challenge is the growing skills gap in data management and analytics. "There's a huge demand for people with data science expertise, but not enough supply," Milburn said. "Businesses are realising that managing unstructured data isn't just about storage anymore. It requires specialised skills to analyse, secure, and leverage effectively."
Many organisations struggle because they lack personnel who instinctively understand data management. "When we talk to businesses, one of the biggest challenges they mention is that they don't have anyone internally who really knows how to handle unstructured data," he added.
Reducing Risk Through Better Data Management
Milburn emphasised that mitigating risks associated with unstructured data starts with analysis. "You have to understand what you've got, where it is, and how to organise it," he said. "Using a solution like ours, businesses can quickly triage their data and identify what is actually important."
Datadobi has scanned thousands of business environments over the past 15 years and found that typically, 30% to 50% of unstructured data either lacks an owner or hasn't been accessed in more than two years. "When we show businesses this data, they're often shocked," Milburn said. "It helps them start making more informed decisions."
Strategies for Cost Reduction
Managing unstructured data is not just about compliance and security—it's also a financial issue. Businesses are spending increasing amounts of money on storage, much of which is unnecessary. "The key is to ensure every file and object is in its most cost-appropriate location," Milburn explained. "Using our solution, businesses can move data with just a few clicks, optimising storage and cutting costs."
He provided an example of a global organisation that initially identified over six petabytes of critical data that needed protection. However, after scanning and reviewing, less than 10% of that data was actually critical. "Once they realised this, they were able to significantly reduce costs while still ensuring data security," he said.
The Role of AI in Data Management
As artificial intelligence becomes more integrated into business operations, effective data management is more crucial than ever. "AI will consume everything if you let it," Milburn said. "But if you feed it unfiltered data, you risk skewing the results."
He recommended triaging data before applying AI tools. "If you train your model on poor-quality data, you'll get poor-quality insights," he said. "It's important to clean and organise the data first, so AI can actually deliver meaningful results."
Preparing for the Future
Looking ahead, Milburn expects unstructured data management to become even more central to business strategy.
"Organisations want to derive value from their data, reduce risks, manage costs, and gain visibility into what they actually have," he said.
Businesses are also realising the importance of continuous and proactive data management. "We've been in meetings where executives are shocked to discover data they thought had been decommissioned years ago is still sitting on their systems," he added.
For companies just beginning to address their unstructured data challenges, Milburn's advice is simple: start now. "The earlier you begin, the easier it will be to manage your data effectively," he said. "It's about making smart decisions today so that data doesn't become an even bigger problem tomorrow."
He concluded, "Our vision is to help organisations unlock the full value of their data. If they can achieve that, they can innovate faster, make smarter decisions, and ultimately gain a competitive edge."