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Analyst Relations // DRaaS Can Save Your Job


Lisa Dreher, VP Marketing, Logicalis US

Cost-conscious CIOs may balk at the costs involved, but services that can be adapted as offerings in the cloud make financial and technical sense.  DR-as-a-Service is a perfect example.Today, tech-savvy CXOs are realising that the cloud has become an integral part of everyday business vocabulary. Everybody is worried about the price of disaster recovery, but what is the price of a business’ downtime? Company leaders need to take a hard look at numbers they already have on hand. People have downtime numbers based on holidays when the company is closed; they know what it means to be shut down for an entire day, week or more. But they don’t want to look at it because doing so cost-justifies disaster recovery as a needed expense. DR-as-a-Service can replace huge capital expenditure (cap-ex) and personnel costs with more manageable operational expenditure (op-ex) figures.

DR-as-a-Service is well suited for mid-sized organisations that don’t have the resources for in-house recovery management facilities and speaking to our customers, we see that approximately one-third of middle-market organisations will embrace the cloud for data recovery within the next couple of years because moving disaster recovery to the cloud is a smart business move. It takes a significant infrastructure to correctly administer a disaster recovery program. However, cloud providers have the IT equipment, the personnel and the training to provide disaster recovery as a service to mid-sized clients on a large scale more cost effectively and with greater precision than many middle-market organisations can do on their own because they operate on economies of scale and shared-resources.

For these organisations disaster recovery as a service is a strong alternative to a premises-based business continuity/disaster recovery plan. Here are the top six reasons we believe CIOs should put DR-as-a-Service on their radars for early adoption in 2012.

  • Minimising Costs: Disaster recovery plans are expensive. To do it right, there’s just no getting around the duplication of assets. When a technology refresh is called for, businesses are caught in the financial trap of refreshing both sites as well as spending untold man-hours and intellectual knowledge just on the process of creating synergies between the two sites. Essentially, it’s like running two data centres rather than one. On the flip side, with DR-as-a-Service, all of the disaster recovery planning work, all the technology refreshes, all the man hours needed to make things sync are all costs that are covered by the service provider. The business customer pays a fixed monthly op-ex cost that can be expected to remain fairly constant for three to ten years even with two or three technology refreshes thrown into the mix.
  • Maximising Knowledge: Companies that take on the chore of disaster recovery in house have to become experts in DR as well as everything else they are doing on an IT basis. They are continually investing and reinvesting in that knowledge base, and often, that expertise is held by just one or two key people in the tech department. What if those in-house experts leave? With DR-as-a-Service, the entire service provider’s organisation is dedicated to building expertise in disaster recovery. They see new ways to offer recovery based on what they are doing with other clients and can bring those to a CIO’s attention. If a client’s IT manager wants to try something new, it is incumbent upon the service provider to do the research and development of that plan, leaving the client free to use its IT resources in ways that create more tangible value for the company.
  • Faster Access to Experts: Economies of scale are a clear advantage in just about every area of business. This holds true when a customer needs to talk with the technical experts at an OEM. While a single business may have purchased a substantial amount of equipment from a vendor, it’s unlikely that they have as deep of a relationship with that vendor as the cloud service provider has, given their volume of purchases and ongoing support contracts. So, when every second counts and a business’ systems are down, CIOs will be thankful they have direct and immediate access to the wealth of knowledge and highest level of certified professionals on their cloud provider’s staff – who also have immediate-call relationships with individual technology vendors – rather than the client CIO trying to call any vendor themselves and working from the bottom up.
  • Management & Monitoring: In today’s world, fast recovery point and time objectives are more the norm than the exception. Few companies have the luxury of waiting for tapes to be shipped to their facility in the event of a true disaster. Even the most prepared IT managers today often hear about downtime from customers; they didn’t know a failure was imminent and their DR systems may not have been live and at the ready. Service providers offering DR-as-a-Service, however, live and breathe disaster recovery; as a result, they have the most sophisticated systems possible to monitor their clients’ data centres, alert them to impending failures, and manage the recovery process faster and more smoothly than most in-house IT departments can react. Since providers already have these management and monitoring tools in place, and those tools can be extended to their clients, it makes good business sense to take advantage of that and use their dashboards, reports and measurable metrics to oversee the health of the company’s primary data centre.
  • Failback: This is the one no one thinks about. Imagine a disaster occurred. The company has a DR facility, the plan worked, and the company is back up and running. Now what? How does the company transition back to its primary data centre without disrupting operations? Even the most experienced CIOs struggle with this question. If the company’s DR facility is an older or secondary data centre that is not as well equipped as the primary, the IT department is now in a time-crunch, trying to determine how to failback before a new event takes place. But with DR-as-a-Service, the cloud provider has significant infrastructure and resources since those resources are shared among many users; they have stringent standards in place that give CIOs the luxury of planning a failback strategy over time that makes sense with the added benefit of the deep knowledge of the cloud provider’s engineering staff at their disposal.
  • Job Security: According to research by the U.S. Bureau of Labor, 93 % of companies that suffer a significant data loss go out of business within five years. Who wants to be responsible for that? There is a lot of risk involved for CIOs who implement their own disaster recovery plans in house. There is the obvious cost of acquiring redundant systems. The time and personnel cost to manage what amounts to two data centres. The question of how to handle DR when a primary data centre is refreshed. And the “what if” fears that keep IT pros up and night, wondering and hoping the strategy they have in place is fail safe in the event of a catastrophic system failure. With DR-as-a-Service, the responsibility is largely shifted to the service provider, and with clearly defined SLAs, CIOs and IT managers gain a measure of comfort and job security that, before DR-as-a-Service, was unimaginable.

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Joanne James,
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Udeni Samarasekara,
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