1. © 2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners. Small Business Survey January 2010

2. Nine out of ten small businesses are concerned with computer and online data security.  Larger firms are more concerned than smaller firms.  Newer businesses are more concerned than firms that have been in business for a while. Online computer security threats are a greater concern than wireless security threats to small businesses owners. Similar to how wireless security threats are addressed, smaller firms are more likely to install software to tackle wireless security threats, while the larger small businesses are more likely to block access to certain Web sites and hire people to handle the security. Page 2 Summary of Findings: Computer and Online Data Security

3. Page 3 MEAN: 7.9 (“Don’t Know” is not shown) Concern with Computer and Online Data Security BASE: Respondents who use a computer for business-related activities (n=1,008) 34% rated their concern a “10” Nine out of ten small businesses are concerned with computer and online data security. Larger firms are more concerned than smaller firms. Newer businesses are more concerned than firms that have been in business for a while. Nine out of ten small businesses are concerned with computer and online data security. Larger firms are more concerned than smaller firms. Newer businesses are more concerned than firms that have been in business for a while. (May not equal 100% due to rounding) Q.27 Using a scale from 1 to 10, with 1 meaning “not a concern at all,” and 10 meaning a “major concern,” how concerned are you about computer and online data security for your business?

4. Addressing Online Computer Threats Page 4 Q.28 Which, if any, of the following steps have you taken to help keep your business safe from online computer threats? BASE: Respondents who use a computer for business-related activities (n=1,008) (Multiple responses allowed) Similar to how wireless security threats are addressed, the smallest of the firms are more likely to install software to tackle wireless security threats, while the larger small firms are more likely to block access to certain Web sites and hire people to handle the security. No. of Employees 2-1011-2526-50 Install software90%89%83% Block access31%36%45% Have employee handle16%29%38% Hire outside consultant13%25%27% Similar to how wireless security threats are addressed, the smallest of the firms are more likely to install software to tackle wireless security threats, while the larger small firms are more likely to block access to certain Web sites and hire people to handle the security. No. of Employees 2-1011-2526-50 Install software90%89%83% Block access31%36%45% Have employee handle16%29%38% Hire outside consultant13%25%27%

5. Reasons for Not Taking Precautions Against Online Computer Threats Many small businesses say they have not taken precautions against online computer threats because they don’t feel it’s an issue. Reasons given for not taking precautions include: 1. Don’t think it’s an issue with our business – 44% 2. Too expensive – 14% 3. Reliability of software to provide security – 14% 4. Didn’t know we should take precautions – 12% 5. We use a Mac – 7% 6. Other – 9% Page 5 Q.29 What is the primary reason you have not taken specific precautions against online threats? BASE: Those who have not taken precautions against online computer threats (n=43)

6. Page 6 Data Back Up National Data

7. The smallest businesses tend to back up their data less frequently than the larger small businesses. Perhaps this is due to their relative size; smaller firms generate less data that needs to be backed up. The smallest businesses are more likely to back up data onsite using easily accessible and fairly inexpensive methods. Data indicates that even though small businesses say it’s important to be able to recover data in the event of a disaster, realistically, the degree to which it is important is positively correlated to IT budgets; the lower the budget the lower the importance. This finding, in turn, indicates that recovery of data is not an IT priority (as it relates to budget). Page 7 Summary of Findings: Data Back Up

8. Frequency of Backing Up Business Data Page 8 BASE: Respondents who use a computer for business-related activities (n=1,008) Q.30 How often do you back up your business data? The smallest businesses tend to back up their data less frequently than the larger small businesses. Perhaps this is due to their relative size. Smaller firms generate less data that needs to be backed up.

9. Method of Backing Up Business Data Page 9 BASE: Respondents who use a computer for business-related activities (n=1,008) Q.31 How do you back up your business data? * * Less than 0.5% Smaller businesses are more likely to back up data onsite using easily accessible and fairly inexpensive methods.

10. Reasons for Not Backing Up Business Data More than half of the small businesses say they have not taken any action to back up their business data because they don’t feel it’s an issue. Reasons given for not taking action include: 1. Don’t think it’s an issue with our business – 56% 2. Didn’t know we should take precautions – 17% 3. Too expensive – 7% 4. Reliability of software to provide security – 7% 5. Don’t have enough time/too busy to check it out – 7% 6. Other – 5% 7. Don’t know – 1% Page 10 Q.32 What is the primary reason you have not taken specific actions to back up data? BASE: Use a computer at work AND do not backup data (n=75)

11. Page 11 Importance of Recovering Computer Data BASE: Respondents who use a computer for business-related activities (n=1,008) Q.33 How important would it be for your business to recover computer data in the event of a disaster (on a scale from 1 to 10)? 60% rated this a 10 (“extremely important”) The bar chart to the right of the pie chart indicates that even though small businesses say it’s important to be able to recover data in the event of a disaster, realistically, the degree to which it is important is positively correlated to IT budgets; the lower the budget the lower the importance. This finding, in turn, indicates that recovery of data is not an IT priority (as it relates to budget).

12. Two-thirds (65%) of small businesses are concerned about computer and online data security for their business (rated 8, 9 or 10 in importance on 10-point scale). Of interest is that about 10% of small businesses indicate they are not concerned about computer and online security threats, but only about 3% have not taken steps to address security. Installing software, such as spam filters or antivirus protection, is the primary method of security for small businesses, with 89% of small businesses indicating they have installed software. Page 12 Summary of Findings: Computer and Online Data Security