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Backing up on the cloud

Disaster Recovery and Business Continuity

ContinuitySA conference

26th July 2012

Chantel Lindeman

2

Key messages

• The application of cloud has changed not the concept

‒ Led to changed enablers for business continuity

• Oversupply of data centres in South Africa

• Back up for non-critical solutions is being moved from legacy

systems into the cloud

• Disaster recovery is critical to all businesses

3

Agenda

Uptake of cloud computing: The Reality

Business Continuity and Disaster Recovery Solutions to Enterprises

South African Cloud Computing Market

Data Centre Uptake: Virtualised Environment

Disaster Recovery

Where is your Business?

4

• Public cloud offers the opportunity

to fully exploit the cost savings

inherent in cloud computing

services

‒ Company relies on the service

provider for security and data

backup

• Private cloud ensures more security

as data and applications are stored

internally

‒ Some companies use it initially to

gain insights and confidence into

Cloud computing services

‒ It still requires upfront costs and

hands-on management, therefore it

does not fully exploit the cost-

reduction potential

• Hybrid cloud enjoys ‘the best of both

worlds’, as it offers the flexibility to have

SaaS and the discretion on managing

the security and data

‒ Costly to keep resources on a private

cloud while the resources on the public

cloud pose a security risk

Three deployment models available for cloud computing

5

The broken promise of cloud - enterprises restrict cloud

usage to non critical apps (e-mail and web hosting)

6

Global Cloud Market Takes Off: This what is what the

market is saying including Frost & Sullivan …

The global cloud market is predicted to increase fro $41 billion in 2011 to more

than $241 billion by 2020

0

50

100

150

200

250

300

2008 2010 2012 2014 2016 2018 2020

Re

ve

nu

e (

Bil

lio

n d

oll

ars

)

Years

Predicted Global Cloud Market

Predicted

Source: 2011 Forrester Research

7

… yet, adoption remains slow due to multitude of factors

Unfamiliar

Believers

Unconvinced

Familiarity and adoption of IaaS

Have never

heard of IaaS

11%

Not very familiar

with IaaS

29%

Familiar with

and currently

using IaaS

9%

Familiar and planning to

implement IaaS within 2 years

13%

Familiar with or have considered

IaaS, but no plans to implement

37%

• Providers have captured the

earlier adopters

• Believers are convinced of the

benefits of cloud computing

‒ However, they are concerned

with cloud security

• The Unconvinced are less likely

to recognise the benefits of cloud

computing

‒ Lack of cost reductions

‒ Private data centres are at low

risk of incurring securing breach

• The Unfamiliar perceptions of the

cloud were negative or undecided

‒ Concerned about performance

and reliability

Source: Frost & Sullivan, 2011 N = 301

8

Agenda





Disaster Recovery


9

Factors driving investment in Business Continuity and

Disaster Recovery

• Every business has a BC/DR plan

• For a small business, it may be as unsophisticated as a shared list of

employee and vendor phone numbers

• For a large enterprise in a highly regulated industry, maintaining the plan may

be the full-time job of a Business Continuity director

• For most businesses, however, the plan falls somewhere in between

• But enterprises struggle with degree of time, energy, and money should be

devoted to business continuity planning

• Whereas most IT business cases are based on positive measures –

increased productivity or cost savings – BC/DR plans are based on negative

measures

• It requires a different way of thinking that not all IT personnel are comfortable

with

10

Drivers listed as “high” importance are perceived by

enterprises as being the most critical to their business

Driver Importance

to

enterprise

Regulatory compliance High

Financial impact of lost

sales/revenue

High

SLA-based financial

penalties

Medium-

High

Competitive market

positioning

Medium

Financial impact of

productivity loss

Medium-Low

Restraint Importance

to

enterprise

Difficulty in establishing

business case for

solutions

High

Limited budget High

Difficulty coordinating

plans across departments

and functional areas

Medium

Inherent discomfort with

installing idle or

underutilised backup

facilities

Medium

Difficulty justifying

resource allocation for

testing and continual

updates of plan

Medium

11

Agenda





Disaster Recovery


12

• Adoption rates in South Africa are

low

‒ Even though cloud dominates IT

discussions

‒ Simplicity in implementing the

technology and cost savings

• IaaS is showing steady growth

‒ Understanding of the product

offering

‒ Visibly see the cost benefits on

P&L with reduction in

infrastructure spend

• SaaS is in development phase

‒ Niche players are building traction

in the market

• PaaS is new to the market but is

expected to rapidly increase over

next 5 years

Cloud Services Market: Market Cycle (South Africa), 2011

PaaS

Maturity Development Growth Decline

Time

Ma

rket

Va

lue

Source: Frost & Sullivan

IaaS

SaaS

In South Africa, the uptake of cloud computing is still in

the development phase

13

A combination of the on-premises and virtualised data centre allows companies to

retain its core services on-site and move non-critical offerings off-site

Key driver in South Africa has been the evolution of the

data centre environment

14

Agenda





Disaster Recovery


15

0

500

1000

1500

2000

2500

3000

3500

4000

4500

2010 2011 2012 2013 2014 2015 2016

Reve

nu

es

(R

Mil

lio

n)

DC revenues are expected to grow at a CAGR of 9.6% to

reach R4.0 billion by 2016, from R2.3 billion in 2010

Source: Frost & Sullivan, data centre operators interviews

A number of trends contribute

to growth:

1) Outsourcing of data centre

requirements

2) The SME sector which will

increasingly adopt a variety of

data centre services

3) Aging equipment that can no

longer keep up with

performance requirements

4) Insufficient power availability

for new high-density servers

2010 Revenues:

R2.3 billion

2016 Revenues:

R4.0 billion

South African data centre market revenue forecast

16

As traditional products mature, newer products are being

introduced

Source: Frost & Sullivan

Bubble size represents revenue/subscriber size of service area

Data Centre Adoption Trends

Ad

op

tio

n R

ate

Low

High Introduction Growth Maturity Decline

LAN

WAN Web Hosting

SaaS

Hosted Enterprise Security

DR

Remote Backup

Managed servers

Cloud storage

Virtual Desktop

Basic Hosting

Hosted Managed Backup

Virtual Server

Cloud storage, virtual server and

desktop, remote backup and

hosted exchange are promising

service segments as traditional

product lines are maturing

17

0 200 400 600 800 1000

Basic Hosting

Cloud Storage

Disaster Recovery

Hosted Enterprise Security

Hosted Managed Back up

LAN

Managed Servers

Remote Backup

SaaS

Virtual desktop

Virtual server

Web-Hosting

Virtualisation solutions and cloud-based services will

drive data centre revenues in future

Source: Frost & Sullivan analysis

CAGR Virtualisation solutions

are a key technology

trend as they offer

significant efficiencies

and cost savings to

companies of all sizes

As a result SaaS, virtual

desktop and virtual server

are expected to have the

highest growth rates to

2016

The importance of core

services to overall data

centre revenues will

decline by 2016, as these

services also become

more commoditised

SaaS uptake will be

driven by hosted

exchange, CRM and UC

Cloud storage is a

small sub-product

of cloud-based

services

8%

13%

30%

23%

10%

8%

2%

8%

10%

5%

12%

5% 2010

2016

Growth forecasts per product sector, 2010 – 2016

18

Virtualisation at the heart of the cloud business model

Cost avoidance

Expand capacity at minimal cost, by

maximising the use of existing resources

Saves energy costs; and, by decreasing the overall footprint,

avoids or defers build out of the data centre

Application Mobility

High availability, "always on" applications

Easy to implement business continuity

plans

Ease of Implementation

VM can be built in a matter of hours or

even less

Frost & Sullivan expects virtualised

offerings to overtake the uptake of

managed services

Source: Frost & Sullivan analysis

19

Agenda





Disaster Recovery


20

ContinuitySA is the market leader in the disaster

recovery sector

ContinuitySA

21%

IBM 17%

T-Systems

16%

BCX 14%

HP 12%

Other 20%

Disaster Recovery Market Share 2011

Market expansion due to

increase of data centre

providers entering the sector,

and customers are increasingly

in need of such services

Cloud offerings have changed

the sector as many market

players are planning to offer

disaster recovery through

backup-as-a-service and

storage-as-a service

21

Most large and medium companies

have dedicated IT budget for DR

services

With decreasing costs of

broadband, market opportunities for

traditional disaster recovery

services is likely to decrease

whereas the role of cloud storage in

this sector will grow

The advent of cloud-based storage could hamper the

continued growth of traditional disaster recovery services

Market

Stage • Mature

0.0 50.0 100.0 150.0 200.0 250.0

Revenues (R million)

Disaster Recovery Market Forecast CAGR

5%

22

ContinuitySA complements its disaster recovery

solutions with advisory services

Products

Wide range of services

Work area recovery seats, bandwidth services, virtualisation

Advisory services deal with business continuity and other related services

Infra-structure 3,500 work area recovery seats and

30,000 m2 of recovery space Pricing

Charged on an annuity basis

Contract length typically 3 to 5 years

Solution

Model

Dedicated and shared disaster recovery using both virtual and dedicated platforms

Several platforms are offered to cater for customer preferences

Customers prefer blended solutions

3 tests per year are encouraged with no limitations for clients which have subscribed to dedicated

areas

Product

Bundles

With all product and recovery coordination services

Ensures that companies are able to coordinate full business recoveries effectively with the

involvement of qualified business continuity management staff

With network services including metro Ethernet, MPLS and wireless

Rapid desktop deployment is offered as a value add

RPO or RTO Clients determine if the backup package should be delivered on recovery point or time objective

23

Traditionally, system integrators have offered DR and BC

as part of their data centre service offering

Products

End-to-end business continuity and

resilience services

A web portal allows customers to

back up and recover information

Pricing Backup services are charged per Gb

Solution

Model

Provided from its data centres

Both dedicated and shared disaster

recovery solutions can be built

Tests are dependent on customer

requirements

IBM International acquired Arsenal Digital Solutions in

2007, an ICT firm, through its business continuity team

to enhance its backup package for disaster recovery

services

IBM South Africa leverages off Arsenal’s DR expertise

to meet end-user requirements

Products

End-to-end business continuity and

resilience services

Multiple models for bundling backup

packages for disaster recovery

E.g. storage, computer and

system can be dedicated to a

specific client

Solution

Model Provided from its data centres

Infra-structure

One disaster recovery site 50km

away from its Tier IV data centre

2 sites in Kwazulu-Natal

24

Agenda





Disaster Recovery


25

Where is your Business on the Journey?

Source: Frost & Sullivan Analysis

Hybrid Cloud

Automation

Private Cloud

Public Cloud

Virtualisation

Consolidation

26

http://www.frost.com

Your Contact For Additional Information

Chantel Lindeman

Business Unit Leader – ICT Africa

Tel: +27 21 680 3205

Mobile: +27 82 555 3851

E mail: [email protected]

For additional information

http://www.frost.com/

mailto:[email protected]

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