Confidential1 © 2013 QuorumLabs Inc. June 25, 2013

Preparing for Disaster: Using the Cloud

Properly to Keep Your Business Running

During the Unexpected

Larry LangPresident and CEO

Confidential2 © 2013 QuorumLabs Inc. June 25, 2013

Quorum Quick Facts www.quorum.net

Business

focus

One-click backup, recovery and continuity

hybrid cloud services and appliances that are

affordable to own, quick to install, and simple to use

Target markets

Small to medium sized companies in

banking, legal, accounting, healthcare, government, manufacturin

g, logistics…

PenetrationProtecting thousands of servers for hundreds of customers

in 10 countries

Employees Over 40 (and hiring!)

Investors

Recent $11M+ funding round led by Toba Capital,

joined by Airtek Capital Group and other investors

—$29M raised in total

TimelineFounded 2008, derived from defense technology,

first shipments in early 2010

Headquarters San Jose, California

Confidential3 © 2013 QuorumLabs Inc. June 25, 2013

It’s a digital world and businesses aremore dependent than ever on their IT systems

Confidential4 © 2013 QuorumLabs Inc. June 25, 2013

Case Study: Hurricane Irene in Vermont

Winooski River overflows in Montpelier and Waterbury

August 29, 2011

Floods state government data centers on lower floor and basements

―As with every best laid plan that has never been tested there were some variables that we didn’t count onsuch as the speed with which the river would rise.‖

Weeks to restore normal operations

Confidential5 © 2013 QuorumLabs Inc. June 25, 2013

Case Study: False Security in New Orleans

Five years after Hurricane Katrina

October 25, 2010

Parish of Orleans Civil District Court

mortgage and conveyance database

crashes

Index of thousands of records, filling two floors

Cloud backup service stopped

receiving good updates in July, older

records purged to save money

No testing to reveal problem

New Orleans with no real estate

records or transactions for over

3 months

~179,000 paper records manually re-entered

Clerk of Court Dale Atkins still

employed

Acting CTO Tynia Landry is not

Confidential6 © 2013 QuorumLabs Inc. June 25, 2013

Success Story: Hot or Not? at Midwestern Bank

Blade server firmware

upgrade introduces bug

False positive temperature

readings cause intermittent

processor blade shutdowns

Prevented processing of

checks and deposits

Diagnosis, fix, and testing

required about 4 weeks

Fortunately, one-click

recovery allowed

continued operations

Confidential7 © 2013 QuorumLabs Inc. June 25, 2013

Lessons Learned: Business IT Disaster Recovery

Hardware Failure

55%

Human Error22%

Software Failure

18%

Natural Disasters

5%

Top 4 Typesof Disasters

Natural disasters grab headlines, but

mundane problems more commonFacilities (fire, plumbing...)

Hardware (disk failure, board burnout...)

Software (BSOD, update gone rogue...)

Human Error (deletion regret...)

Small to mid-sized businesses are at

risk of losing revenue, customers, and

reputationTypical recovery takes 30 hours

Average losses of $74k per hour

Big gap between “ought to work” and

“known to work”Frequent testing only way to bridge this gap

Only 28% of SMBs have tested recovery

Backups automated, yet most

recovery still manualIt’s not about backup, but how fast

you’re back up

Quorum Disaster Recovery Report, Q1 2013

Confidential8 © 2013 QuorumLabs Inc. June 25, 2013

Recovery Economics

One-Click Recovery

Traditional

Backup

Replicated

Data Center

Instant

Transactions

Active

Business

Archives

Confidential9 © 2013 QuorumLabs Inc. June 25, 2013

Traditional Backup

• Lengthy restore—

hours or days

• Infrequent, inconvenien

t testing

• Unwieldy, unsecure

offsite media

Issues with current options forprotecting servers, applications and data

Replicated Data Center

• Costs more than double

• Complex to integrate

and maintain multiple

components

Cloud Backup (Storage)

• Longer restore because of

limited download

• Waiting for media

shipments

7 vendor products

230 manual pages

>700 lines of scripts3 TB download

>6 months @ 1.5 Mbps

>3 days @ 100 Mbps

―More than 50% of the time, a full recovery

attempt from tape will result in failure.‖ Hurwitz and Associates

Was all data written?

Can it be read?

How to be sure?

Confidential10 © 2013 QuorumLabs Inc. June 25, 2013

Traditional Backup Obsolete

• Assumed that disaster recovery involved replacing destroyed

physical computers with new equipment

• Hours or days to purchase, rack, power, connect network,

update operating system, install applications, restore data

• Testing involved similar costs and effort, and thus infrequent

(quarterly in best practice)

Confidential11 © 2013 QuorumLabs Inc. June 25, 2013

New Technologies Revolutionizing Recovery

• Delivery of computing and storage

capacity as a service

• Allows incremental changes to be

sent over an Internet

connection, avoiding daily pick up

of tapes or disks

• Creation of a virtual machine that

acts like a real computer with an

operating system, but logically

sharing the underlying hardware

• Allows rapid creation of

replacement systems

Cloud Virtualization

Confidential12 © 2013 QuorumLabs Inc. June 25, 2013

Typical Business IT EnvironmentPlus One-Click Recovery Hybrid Cloud

One-Click Recovery

Onsite Appliance

One-Click Recovery

Offsite/Cloud

Confidential13 © 2013 QuorumLabs Inc. June 25, 2013

Failure or Disaster DisruptsBusiness Applications

Confidential14 © 2013 QuorumLabs Inc. June 25, 2013

One-Click Recovery Restores Business In Minutes

Onsite for

High Availability

Confidential15 © 2013 QuorumLabs Inc. June 25, 2013

One-Click Recovery Restores Business In Minutes

Offsite for

Disaster Recovery

Confidential16 © 2013 QuorumLabs Inc. June 25, 2013

Automatic and On-DemandRecovery Testing Ensures Protection

Confidential17 © 2013 QuorumLabs Inc. June 25, 2013

Success Story: Learning from Local Disaster

Devastating thunderstorms and

tornadoes claim lives, flatten homes, and

ruin businesses around Tuscaloosa, AL

April 24, 2011

Reno Refractories Morris, AL

Leader in metal foundry industry, offering full line

of quality refractory products and custom-

designed precast shapes

Nearby disaster prompts review of

recovery plans

Symantec Backup Exec disk-to-disk-to-tape

Tapes in local bank safe deposit box,

too close for comfort

Insufficient testing

One-click recovery for rapid response

Hybrid cloud combining onsite appliance and

offsite data center

Geographic diversity

Automated daily testing

Confidential18 © 2013 QuorumLabs Inc. June 25, 2013

Success Story: Prepared for Super Storm Sandy

Super Storm Sandy

October 29-November 3, 2012

24 Seven International

International staffing company for creative

industries

Payroll and personnel records in

Manhattan office

Lost power for almost a week

Recovery system allowed rapid shift

of operations to Los Angeles office

―We tested each recovery node to make sure

it would come up OK, and we tested the

synchronization between offices. During the

storm, everything came up right

away, according to plan. Working with the

staff in LA, we were able to bring everything

up within an hour.―

— Doug Feltman, director of systems and

applications

Confidential19 © 2013 QuorumLabs Inc. June 25, 2013

City of Corner Brook, NewfoundlandFast Recovery Time Key to Maintaining City Services

• City administration, tax collection, animal control, and other public services

• Population: 26,623 (CA 2011)

• City employees: 100+

• Protecting 7-8 physical servers

“If our server goes down, email could be out for 24 to 72 hours. When you’re living in Newfoundland, there’s no easy access to resources and it might take two days to get new equipment delivered – not to mention set-up time. Peace of mind is #1 for us and [one-click recovery] gives us the assurance that our email and applications will be back up within minutes of a failure.”

– Frazer Parsons,Computer support specialist,City of Corner Brook

Confidential20 © 2013 QuorumLabs Inc. June 25, 2013

Disaster Recovery with Hybrid CloudWhen Minutes Matter Most

• Business IT systems more important than ever– Even small- to medium-sized business demand recovery in

minutes, not hours or days

– Prepare for major natural disasters andmundane problems with hardware, software, and errors

• New technology makes one-click recovery possible– Hybrid cloud/Disaster Recovery as a Service (DRaaS)

– Virtualization

– Deduplication

– Automation

• Dependable, easy and affordable– Recovery in moments

– Restoration at your convenience

– Daily automated testing now state of the art

Confidential21 © 2013 QuorumLabs Inc. June 25, 2013

One-Click Backup, Recovery and ContinuityHybrid Cloud and Appliances

Larry Lang

President and CEO

larry.lang@quorum.net

www.quorum.net