Cloud Has Brought Down Cost Of Disaster Recovery

by Preeti S    Mar 06, 2015

disaster recovery

Very often companies say their disaster recovery plan is fool-proof if they have the right software. But outages and IT downtime can have huge negative impact on businesses.Generally, companies face three kinds of risks: External risks include natural and man-made disasters, Facility risks comprise power outages and fire mishaps while data systems risks relate to related to the use of shared infrastructure, such as networks, file servers, and software applications which could impact multiple departments.

Chandra Pulamarasetti Gartner suggests that close to $42,000 is lost every hour due to power outages and financial sector incurs upto $100,000 loss. A 2013 survey of data center operators conducted by the Ponemon Institute gives some idea of how costly data center outages can be at the high end. Seventeen percent of respondents estimated that a one-hour outage would cost their organization more than $500,000, and 6% said a one-hour outage would cost more than $1 million. That is the reason why Recovery-as-a-Service (RaaS) is gaining momentum.

Chandra Pulamarasetti, Co-Founder & CEO, Sanovi Technologies, says, “IT firms are realizing the impact that a disruption of service could have on the revenues, customer confidence and existence in itself. IT departments are getting closely tied in with the business objectives in formulating their business continuity SLAs. They have consensus that a well-planned Business Continuity & IT Recovery set up is integral and has to have high levels of automation built in to avoid human errors as well as dependency on few experts in a crisis situation.”

According to Forrester’s recent survey of 2,803 IT decision-makers, improving their business continuity and disaster recovery (BC/DR) capabilities as the No. 1 priority for SMBs and the second highest priority for enterprises.In an interaction with CXOtoday, Pulamarasetti listed the compelling reasons for companies to go for a DR plan. He said IT failures have gradually become an accepted and virtually expected aspects of enterprise life.

“The primary reason to invest in DR technologies is the need to protect businesses against natural or man-made outages. DR technologies minimize or eliminate business impact and business downtime due to outages. Thereby, DR technologies help enterprises avoid revenue loss, avoid litigation, maintain shareholder confidence, and avoid reputation risk due to outages,“ he said.

The impact of IT downtime

He says the cost of downtime is a key component of IT budget. It is the prime determinant for the investments required for a disaster recovery plan. There are basically two types of costs namely, tangible and intangible. Tangible costs refer to the costs incurred due to interruption in business that leads to loss of revenue and productivity. Intangible costs accounts for lost opportunities from customers, competitors, faltered reputation and similar factors. IT outages are recurring phenomenon’s and lengthy, and they cause substantial damage to a company’s’ reputation, staff morale, and customer loyalty, in addition to revenue loss.

Right strategy to deal with downtime 

IT firms are realizing the impact that a disruption of service could have on the revenues, customer confidence and existence in itself. IT departments are getting closely tied in with the business objectives in formulating their business continuity SLAs. “IT teams have consensus that a well-planned Business Continuity & IT Recovery set up is integral and has to have high levels of automation built in to avoid human errors as well as dependency on few experts in a crisis situation,” he says, adding how Sanovi solutions offer differentiated services by providing the customer/service provider with automated workflows that help flip of switch fail over – fall back processes, real time monitoring and ability to frequently test their IT recovery with ease.

Future trends in recovery as a service market (Raas)

The deployment of clouds by various service providers has led to DR becoming very affordable. Recovery as Service is the newest offering that managed service providers and cloud service providers are offering, as an alternative to the expensive on-premise DR solutions. With RaaS, the upfront cost of DR has become cheaper by at least an order of magnitude and hence several SMB customers are looking to deploy DR solutions for their enterprise critical systems, he says.

The global RaaS report by Markets and Markets predicts that RaaS will be a $5.8B market by the year 2018, growing at a CAGR of 54%.  “We are seeing initial trends in India too in this direction where several customers are evaluating and adopting RaaS solutions in the recent 6-9 months. For e.g., at least 50 customers are actively evaluating Sanovi Cloud Continuity based RAAS solutions offered by various partners today and this number is only growing by the day,” he said.

He said unlike, traditional DR and Business Continuity technologies, Sanovi software eliminates manual operations and helps CIOs scale up their DR program with ease. Other DR technologies are mostly point products and address DR of only a specific application or technology. Sanovi provides a common UI console across heterogeneous applications of enterprise thereby simplifying the DR manageability to everyone from operator to CIOs.