Evaluating and Selecting the Most Appropriate Continuity Strategy. EVALUATING & SELECTING THE MOST APPROPRATE CONTINUITY STRATEGY FOR YOUR ORGANIZATION BUSINESS CONTINUITY & DISASTER RECOVERY PLANNING BENNY D TAYLOR DISASTER RECOVERY INSTITUTE INTERNATIONAL FEBRUARY 2002 Solutions That Integrate People, Processes, and Technology For The Most Appropriate Continuity Strategy

2 BC/DR High Availability - The Cost of Doing Strategy Business in the e-World The Stakes Are Greater And The Vulnerabilities are Accentuated, Serious, and Real Technology is the Business. Exposure to Slowdowns or Interruptions Is Directly Related to The Level of Dependence on Technology Technology is the Business. Exposure to Slowdowns or Interruptions Is Directly Related to The Level of Dependence on Technology 1Technology Is Woven Into the Operating Fabric of The Enterprise 2Globalization Eliminates Inherent Time Zone Differences 3Explosive Growth in Internet and Intranet Computing Has Increased Demand for Continuous Operations Cost $$ $$ Minutes HoursDays Weeks Days Risk Hours

3 BC/DR The Dynamics of High Availability Strategy The Threat Of Lost Economic Viability Will Drive High Availability Full Recovery & Roll Forward Manual Automated, Integrated Long-Term Short-Term Shared Dedicated Degraded Performance Time of Last Backup Point of Disaster Restartable Lengthy Fast Duration Data Base Image Environment Data Currency Service Level Response Equivalent Restoration Time Conventional Recovery High Availability Cost Containment Increased Revenue ROI

4 GAP Integrity Fault Avoidance Rapid Recovery High Availability Continuous Operations BC/DR Availability Strategy Continuum Performance Continuous Service Minimizing Downtime Resulting From Unscheduled Outages Data Integrity in the Event of Unscheduled Outage User Perception of Downtime. Unacceptable Performance Predicting & Correcting Faults Before They Impact Application Availability Access to Applications & Data During Scheduled Time Access to Applications & Data During Scheduled Outages High Availability & Continuous Business Operations Technology is Vital to the Solution Technology is Vital to the Solution

5 BC/DR Serious Financial Impact In Strategy Mission Critical Environments Manual Workarounds Are No Longer Practical or Available High Availability Cannot Be Acquired Out-Of-The-Box; It Is Built Into the Architecture and Preserved by Effective Processes Lost Revenue Direct Loss Compensatory Payments Lost Future Revenues Investment Loss Productivity Loss Number of Fully Burdened Employee impacted Damaged Reputation Customer, Suppliers, Partners, Banks, Financial Markets Credit Ratings Delayed Collections Billing Losses Missed Discounts Extra Expense Cost to Recover Overtime Expense Increased Fraud Risk Increased Error Rate Travel Expenses Temporary Employees Penalties Contractual Regulatory Legal

6 Construction, Environmental, Electro-Mechanical, Utilities, Servers, Storage Devices, Routers, Switches Operating Systems, Network Protocols Operations Automation, Logical Security, Middleware, Database Change, Problem, and Configuration Management, SDLC, Data Structures, Naming Conventions, Quality Standards Strategic Planning, Architecture Definition, Planning & Control Continuous Service Facilities Hardware Systems Software Support Systems Business Applications Management Practices BC/DR Availability Solutions Are Strategy Comprehensive The Continuous Service Stack is Interconnected Each Layer in the Stack Must Be Sound Providing A Stable Foundation For The Adjoining Layers

7 BC/DR Implementation Strategy Rewards Increased Productivity Substantial Cost Savings Increased Customer Demand Improved Service Increased Revenue Improved Collections Improved Compliance Higher Morale The Benefits of Higher Availability

8 BC/DR Defining the Degree of Excellence for Strategy the e-World High Availability Mission Statement Facilitate Continuous Improvement in the Quality of Service Increase Overall Business Performance, and Preserve Business Continuity Identifying, Implementing, and Delivering Optimal High Availability Solutions That:

9 BC/DR High Availability: A New Strategy Perspective Don’t Re-engage, … Never Disengage Conventional Disaster Recovery High Consequence Low Occurrence Rate Medium Exposure Slow Building Consequences Business Continuity High Consequence Medium Occurrence Rate High Exposure Accelerated Consequences Disaster Recovery Is Perceived Just-In-Case, A Necessity to Doing Business But Counter Productive. A Cost With Little Investment Return And, Therefore, An Unlikely Market For Advanced Technology High Availability Is A Business Necessity Availability Is An Investment. High Availability Leads To The Lowest Cost of Ownership By Reducing Defects and Avoiding Failures

10 BC/DR Key Availability Issues Strategy Price Premiums Continue to Decline How Will Business Managers Invest in Technologies, People and Business Processes That Enable High Availability? What Technologies and Products Will Be Critical to Achieve High Availability? What Strategies Should be Employed to Achieve, Measure, and Report Availability?

11 Time To Recover Crisis Time Zero BC/DR Costs Resulting From Service Strategy Interruptions Are Escalating Technology That Is Intrinsic To Business Processes Need Shorter Recovery Times Emergency Response Relocate Backups Mobilize Resources Restore Operating System Reload Data Base Roll Forward & ReSync No Longer Have to Wait For a Catastrophe non-catastrophic events can cause significant dollar losses

12 Lost Time Crisis Time Zero BC/DR Time To Recover Is a Significant Issue Strategy Technology That Is Intrinsic To Business Processes Need Shorter Recovery Times: Selecting the Appropriate Solution is Key to Success Emergency Response Relocate Backups Mobilize Resources Restore Operating System Reload Data Base Roll Forward & ReSync No Longer Have to Wait For a Catastrophe minutes and hours are dollars in revenue

13 BC/DR The Interest In High Availability Strategy Is Coming From The Business Conventional Recovery Addresses High Consequence, Low Likelihood SHARE Disaster Recovery Tiers Tier DescriptionOrganization % 0 - No Disaster Recovery Plan<.3% 1 - Pickup Truck Access Method ( PTAM )<.1% 2 - PTAM plus Hotsite 90% 3 - Electronic Vaulting 6% 4 - Active Second Site<.5% 5 - Two Site Two Phase Commit<.1% 6 - Zero Data Loss 3%

14 BC/DR Heterogeneous Architectures Strategy Increase Complexity ComplexBasicModerateVery ComplexSimple Network Diversity Number of Disparate Platforms Degree of Automation Adequacy of Management Practices Performance Requirement Size of Data Base Level of Systems Integration Volume of Data Number of Interfaces ComplexBasicModerateVery ComplexSimple ComplexBasicModerateVery ComplexSimple ComplexBasicModerateVery ComplexSimple ComplexBasicModerateVery ComplexSimple ComplexBasicModerateVery ComplexSimple ComplexBasicModerateVery ComplexSimple ComplexBasicModerateVery ComplexSimple ComplexBasicModerateVery ComplexSimple Multiple Large Tight Large Low Multiple Limited High Multiple Single Small Loose Small High Single Strong Low Single High Availability Solutions Are Multi-Dimensional Complex Architectures Make High Availability More Difficult To Achieve

15 A System is Only as Strong as its Weakest Link BC/DR Availability Consciousness Has Strategy Increased GartnerGroup, Oct. 1999

16 BC/DR High Availability Strategy Is Mainstream Operations Enterprise Strategies Require a Conscience Decision on Availability Availability Matters : 1 If You Can’t Survive Day-To-Day Requirements... There’s No Need To Worry About Future Exposures 2Minimize Overhead and Unproductive Costs 3Increase Business Performance 4Protect Technology Investments 5Leverage Technology Investments

17 High Volume, Web-based Business, i.e. e-business, e- commerce Expanded Customer Service, i.e. Customer Satisfaction or Credibility and Reputation Regulatory Requirements … i.e. Decimalization, Extended Trading Day, Reduced Settlement Time Reduced Time-to-Market Pressures Supply Chain Integration … Critical Access by Customers, Suppliers, and Employees Lack of Time Boundaries … i.e. Global Reach Condenses or Eliminates the Processing Window for Batch Cycle Internalizing Disaster Recovery. i.e. Mergers, Acquisitions, Consolidations Increases Exposures to Long term Outages Excessive Failures, Prolonged Outages, Crisis Management BC/DR Business Issues Requiring Strategy High Availability Solutions Typical Triggers for Increasing Availability

18 Construction, Environmental, Electro-Mechanical, Utilities, Servers, Storage Devices, Routers, Switches Operating Systems, Network Protocols Operations Automation, Logical Security, Middleware, Database Change, Problem, and Configuration Management, SDLC, Data Structures, Naming Conventions, Quality Standards Strategic Planning, Architecture Definition, Planning & Control Facilities Hardware Systems Software Support Systems Business Applications Management Practices BC/DR Availability Solutions Are Strategy Comprehensive Initiatives The Continuous Service Stack is Interconnected Each Layer in the Stack Must Be Sound Providing A Stable Foundation For The Adjoining Layers

19 Facilities Hardware Systems Software Support Systems Business Support Applications Management Practices Continuous Service Stack Cost Return Products Solutions Business Build BC/DR Availability Means Getting Strategy Everything Right Everything From Bulletproof Facilities and Reliable Hardware To Sound Management Practices and Defect-Free Applications

20 Man Caused Disasters/ Natural Disasters Performance Problems, Component Failures Capacity Exhaustion, Scalability Problems Data Base Corruption, Error-Correction Problem Security Breach Defects Outside Influence, Virus, Denial-of-Service BC/DR Examples of Threats To High Strategy Availability There Are Vulnerabilities on Every Layer Service Disruptions Facilities Hardware Systems Software Support Systems Business Applications Management Practices

21 Increase Exposures Due To Number Of Components Swapping Back to Primary After Fail-Over Logical Damage or Corruption Of Data Volume Of Data Create I/O Bandwidth Issues Complexity Created By The Number Of Disparate Platforms Perception Of External Auditors Distance From Recovery Site Create Management Logistical Problems BC/DR Some Barriers To Rapid Fail-Over Strategy The Continuous Service Stack is Interconnected Service Disruptions Each Layer in the Stack Must Be Sound Providing A Stable Foundation For The Adjoining Layers

22 BC/DR Causes of Interruptions Strategy The Continuous Service Stack is Interconnected Man Caused Disasters/ Natural Disasters Performance Problem, Component Failure Capacity Exhaustion, Scalability Problem Data Base Corruption, Error-Correction Problem Defects Security Breach Outside Influence Virus, Denial-of-Service Example

23 Two Parts of the Availability Equation... BC/DR The Availability Objective Strategy The Objective... Minimize the Total Cost for the Enterprise CEO 1 - Availability Enhancement Costs IT A quantified part of the IT budget 2 - Availability Degradation Costs Business The unquantified impact on the business units Strike an Economic Balance of Cost verses Risk

24 BC/DR Downtime Cost Money Strategy Address The Short-Term Interruptions and Provide Long-term Recovery as an Auxiliary Benefit “Downtime is costing major Internet players an estimated $8,000 per hour this year” … Forrester Research Inc. “Downtime Costs $1,400 per minute on average”, Oracle “… a typical medium-sized business has downtime costs that average $78,000 per hour. Those sites typically lose more than $1 million annually due to downtime.” IDC, Corp Business Average Hourly Impact Retail Brokerage$6.45 million Credit Card Sales Authorization$2.6 million Home Shopping Channels$113,750 Airline Reservation Centers $89,500 Package Shipping Service$28,250 * Contingency Planning Research The Interest Is In Reducing or Eliminating Service Interruptions

25 BC/DR Size of the Recovery Market Strategy Average Customer Spends Approximately $100k Annually Three business recovery services vendors account for 31% ( $930 Million ) of the roughly $3 Billion annual worldwide market COMDISCO with 12% or $360 Million IBM with 11% or $330Million Sungard with 8% or $240Million Each of the three leading suppliers of business recovery services have 3500 to 4500 customers Approximately 20% of the largest customers of these three suppliers provide approximately 80% of the annual revenue

26 BC/DR Rapid Recovery is a Product of High Strategy Availability and is Achieved Through Quality Rapid Recovery Must Include Full Data Integrity Rapid Recovery & High Availability Solutions Exploit : 1Hardware Competencies of Quality, Performance, and Reliability 2Elimination of Single Points of Failure A TOP ISSUE of the CIO is HIGH AVAILABILITY

27 BC/DR Heterogeneity Rules Technology Strategy Operations Rapid Recovery is Designed and Engineered: Not Accuquired One Dimensional Approaches Will Not Provide High Availability Solutions 1Every Customer Has a Unique Technology Environment Supporting Several Architectures and Operating Systems 2The level of Integration Within and Between Environments Increases Complexity 3High Availability Requires A Comprehensive Approach

28 BC/DR Current Hard Products and Technical Solutions Strategy Focus Primarily On The Foundation Layers The Level Of Complexity Increases As Solutions Move Up The Continuous Service Stack Facilities SAN ESCON - SCSI - FC Hardware S/390 UNIX NT SAN Appliance Systems Software Support Systems Management Practices Applications Business Support Complete Availability Solutions Require Moving Up The Continuous Service Stack

29 BC/DR Improvement Opportunities Are At The Strategy Upper Layers A System is Only as Strong as the Weakest Link Business Support Applications Facilities Hardware Systems Software Management Practices Support Systems High Availability Solutions Must Move Up The Value Chain Increased Value 40% Application Failures 40% Operator Errors 20% Technology Failures Source: GartnerGroup 1998

30 BC/DR Conventional Disaster Recovery Is Strategy Out-Of-Scope Target Market Top-Tier $100 K / Year $100 K+ / Month Electronic Vaulting Remote Copy PTAM Continuous Service The Level Of Complexity Increases As Solutions Move Up The CSS Stack e-Business Will Drive Increased Spending On Disaster Recovery From 3% To An Average Of 7% of Data Center Budget

31 BC/DR Availability Solutions Must Be Unique Strategy And Tailored For Each Enterprise End-to-End Solution Will Require The Skills of an Systems Integrator Storage Shadow Image Remote Copy Extended Remote Copy Veritas Legato Professional/Technical Services Hotsite Off site Vaulting Problem Identification Strategy and Design Implementation Tools Vendors/Partners Services

32 BC/D The Most Difficult Issue for Enterprises with Multiple Strategy Computing Platforms to Solve is Data Synchronization Selecting the Right Backup and Recovery Point for Each Critical Data Base Determines the Synchronization Point Storage Technology Shadow Image Remote Copy Extended Remote Cop Tape Backup/ Off-site Software Tools Veritas Legato Professional/Technical Services