Www.idc.com Business Continuity The Business of Keeping A Business Running John Dooly Senior Analyst CEMA Region Prague, Czech Republic.

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Presentation transcript:

Business Continuity The Business of Keeping A Business Running John Dooly Senior Analyst CEMA Region Prague, Czech Republic

Agenda:  Business Continuity Services Defined  What and Who Drives or Inhibits the Market  IDC’S Business Continuity Study  Spending on BCS in Western Europe  Infrastructure Services & Business Continuity Services in CEE & Greece  Key Findings & Recommendations  Q&As

Business Continuity Services Business Continuity Services (BCS) a combination of disaster recovery services, backup services and contingency planning or consulting Disaster Recovery Services services elements that keep a business running in the event of a major incident which temporarily puts its operations completely out of action. These components include standby provision and restart services. Backup Services The transfer of company data from “live” medium to a protected medium in case of a corruption of the original “live” medium. Contingency Planning/Consulting Services include risk assessment, impact analysis, crisis planning and requirements/resilience analysis.

The Why’s and How’s When Information Systems Are Unavailable then An Enterprise is Out of Business Business Continuity Means Not Going Down at All or If They Go Down that Come Back up with Little Downtime or Financial Lost. How? Plan to Protect Data, Systems and Networks Eliminating Single Points of Failure Development and Deployment of Technologies and Procedures to eliminate Outages Disaster Recovery Plan

Where is Business Continuity Heading? Recovery High Availability Always-on Infrastructure 1980s1990s2000 and on > 24 hours minutes to 24 hoursNone Downtime Risk Financial impact Technology Information Operational cost Revenue Decision Maker IT DirectorCXO

Luckily Opportunity Exists for Companies to Get Help to Realize Their BC Goals Spectrum of Business Continuity Options In-source Discrete Solutions Full Recovery Offering Storage software products Consulting services, PC backup, data storage and recovery, mobile recovery Hot site Utility Always-on infrastructure

Opportunities in business continuity are fuelled by D R E A D  Downtime Translates into Losses  Regulations and Reliable Image  Enabler of Business Solutions such as ERP, CRM SCM etc.  An Act of Nature  Data Security What Drives The Business Continuity Market?

Financial Services and Gov’t Drive Disaster Recovery Question: In response to the events of September 11, 2001, has your organization's total IT budget devoted to disaster recovery and business continuity changed? Source: IDC’s ETT Research Program, 2002 N=532. Preliminary Industries Where Sept 11th Has Created Above Average Increase in IT Disaster Recovery/Business Continuity Budget

Categories of IT Services Outage Unplanned DowntimeBusiness VolatilityPlanned Downtime Loss of electrical power or WAN services Failure of processing, storage and network devices Accidental or purposeful corruption of data due to operator behavior Rolling outage caused by failure of a trading partner’s IT system Intermittent outages, especially those occurring during data recovery processes Maintenance and upgrades for system and application software Installation of new or replacement hardware components Backup and restore procedures for consolidated and distributed storage Unexpected IT demand, either high or low, due to errors in forecasting business operations Merger and acquisition activities Global and regional economic and political events

What Are the Concerns Regarding Business Continuity? Opportunities in business continuity are dampened by C O S T  Cost is an Issue  Offering Does Not Meet Expectations  Spending on Business Continuity Considered A Cost Item  Technical Dept. Are Large in Emerging Markets

Overview of Study Results Ratio of employees supported per IT/network staff Share of total budget spent on technology (HW/SW) Share of IT budget spent on business continuity, disaster recovery Average revenue loss per incident by business function (e.g. manufacturing, finance) Magnitude of ImpactArea of Impact For customers that do invest in a secondary backup infrastructure as compared to those that do not invest in such an infrastructure 3.6 times as much revenue 84% greater 21% greater 27% less ROI TCO Notes: ROI = Return on Investment; TCO = total cost of ownership

Averages Revenue Loss Per Incident by “Backup” Preference $4.03 Million With internal, secondary backup infrastructure $1.12 Million With third-party backup infrastructure

Spending on BCS in Western Europe  BCS Market Worth $2 Billion in 2002  BCS Market Worth $3 Billion in 2007  UK, Switzerland & Luxembourg developed markets

What Continuity Services are Being Bought in Western Europe in 2002 Large WE Companies spending 0.75% - 1.5% of IT Budget on BCS $ 340 K

Western Europe -BCS Purchasing Factors

Forecast and Analysis of Infrastructure Services in Greece, Value CAGR: 3.9% 36.7%of IS spending Infrastructure Services Market will Grow to $35.05 million by 2007

Conclusions & Recommendations….. End-Users Should Understand that BCS Adds Value to Their Business Right Technological Solution Will Maximize Business Continuity End-Users Should Seek Vendors that Can Offer the Full Gamut of Infrastructure Services Third-party Service Providers Can Play a Key Role in Assisting in the BCS Process

Questions?