ibm+ +bc-dr+-+28apr2010

© 2010 IBM Corporation

Managing RiskAchieving Security and Resiliency with IBM

Theodor StanescuDennis van HeesApril, 28th 2010

2 © 2010 IBM Corporation

Agenda

Why does business resilience matter?

How to identify risks to your business

How can IBM help?

Why IBM?


71% Percent of CIOs that rank risk one of their top 3 business priorities

54% Growth in annual storage shipments to meet explosion of data

500+ Percent increase seen last year in Web links that can harm your company


Resilience optimization is balancing the financial impact of riskand the solution cost.

Resilience

… rapidly adapt and respond to risks, as well as opportunities, in order to maintain

continuous business operations, be a more trusted partner, and enable growth.

(IBM BCRS Organization)

Optimization (general)

“… an act, process, ormethodology of making something

(as a design, system, or decision) as fully perfect, functional, or

effective as possible”

(Merriam – Webster Online Dictionary)

Resilience optimization (RO)

“An approach to helping a business find, attain and sustain an appropriate balance between the costs of providing resilience and the business value of that resilience”

(IBM Business Continuity and Resiliency Organization)


And … the world is riskier than it used to be.

Changing environment

Expanding risk exposures

Increased global and regional

Interdependencies

Supply chain disruption

More complex regulations

Changing industry and regulatory standards

Geographic dispersal requirements

Varying regulations per country

Heightened impact of business disruption

Greater financial implications of downtime

Brand vulnerabilities

Data integrity requirements

Impact of coping with the financial turmoil

Loss of critical personnel

Loss of key knowledge

Reduction in attention to significance of risk

Reduction in testing recovery plans

Disaster recovery and business continuance can be one of the top IT spending priorities for many businesses.


While reducing costs is essential in today's economic climate,it’s also essential to not unknowingly take on too much risk.

Smart is: “The right risk at the right price” Understanding the potential loss associated with the level of risk being assumed Understanding the costs associated with the mitigation solutions employed to deal with the selected

level of risk Selecting the mitigation solutions consistent with the level of potential loss Selecting the optimum architecture for the mitigation solutions Optimized resilience can help reduce costs to the business

Potential risk cost elements

Loss avoidance High risk capital

allocation position Maintain credit rating Fine and

penalty avoidance Maintain

customer confidence Maintain social

responsibility Cost avoidance

Tot

al c

osts

ass

ocia

ted

with

ris

k an

d m

itiga

tion

Optimum resilience risk

balance

Resilience optimization

Lower Level of resilience

Costs resulting from

risk loss events

Costs of allmitigation solutionsemployed

Higher

Higher

Types of mitigation solutions

IT resilience architecture

IT service delivery topology

People and processes

Work place strategy

Data and information protection

Regulatory compliance


Business resiliency can provide near-term cost efficiencies as well as strong, long-term returns on investment.

The right business resiliency strategy can help you:

Mitigate risk

– Avoid the costs of downtime, brand damage and market share lost to competitors, and reduce the financial impact from business disruptions

Protect brand and revenue

– Properly assessing the threats to your IT infrastructure, their potential business impact and your tolerance for risk can help you plan a realistic strategy

Protect capital

– Analyzing cost tradeoffs can help you avoid unnecessary investment

Reduce costs

– Resiliency solutions can help protect you from failed restores and lost data

Improve service

– You can better align a resilient infrastructure to the needs of your businessto maintain service level agreements based on your tolerance for risk


Not all risks are created equal…

Frequency ofoccurrences

per year

Fre

qu

en

tIn

fre

qu

en

t

Consequences (single occurrence loss) in dollars per occurrenceLow High

Viruses

WormsDisk failures

System availability failures

Pandemics

Natural disasters

Application outages

Data corruption

Network problems

Building fires

Terrorism/civil unrest

Data driven

Event driven

Business driven

Regulatory compliance

Workplace inaccessibility

Failure to meet industry standards

Regional power failures

Governance

Source: IBM

Data growthLong term preservation

Mergers and acquisitions

New products

Marketing campaigns

Audits


Once risks are understood, an appropriate resilience strategycan be developed.

Accept

Accept the risk

An exposure is deemed acceptable to

the business

Mitigate

Mitigate the risk

Strategy required and implemented to

reduce risks

Transfer

Transfer the risk

When it is more cost-effective to transfer

to another entity (such as insurance,

leaseback or outsource)


We can help you realize significant financial impacts and improvements in recovery service-level performance.

Reactive

Helps identify, quantify, and prioritize business and IT risks, then develop strategies and implement designs to address those risks

Helps eliminate the impact of disruptive events with IT andwork area recovery

Helps balance workloads and reduce application, data and system loss

Advisory

Proactive Responsive

IBM Resiliency Consulting

Services

IBM Resiliency Consulting

Services

IBM Managed Resiliency Services

IBM Managed Resiliency Services

IBM Infrastructure

Recovery Services

IBM Infrastructure

Recovery Services


IBM Business Continuity and Resiliency Services provide end-to-end, comprehensive solutions to help keep your business operating.

IBM ManagedResiliencyServices

IBM Infrastructure Recovery Services

IBM ResiliencyConsultingServices

LEV

EL

OF

EN

GA

GE

ME

NT

SERVICES CONTINUUM

ADVISE RECOVER MANAGE

LEVEL OF R

ESILIE

NCY


We help globally deliver resilience solutions through resiliency centers and delivery and consulting experts around the globe.

A unique infrastructure and skill set designed for flexibility and responsiveness in a disaster situation, from simple to complex environments

Support for over 12,000 clients with over 15,000 contracts

Our depth and breadth of resources include:

A business model based onrisk and syndication ofresource at a machine level

Options for dedicated orlimited shared resource

Successful support for over750 client recoveries.


IBM’s Global Delivery model includes the following elements to meet our clients’ requirements and mitigate risks:

Flexible delivery alternatives in each location

Multisite solution spanning multiple time zones, allowing “follow the sun” without a night shift:

– 24x7 support for mission-critical applications and enabling infrastructure

– 24x7 testing for applications that need to quickly move into production

– Work-day overlap between countries

Multisite solution in different economic zones, helping mitigate the effects of:

– Wage inflation

– Currency risk

– Political and economic uncertainty

Parallel and faster ramp-up, delivering savings more quickly

Access to the world’s largest experienced services skill pool, with extensive industry and technology expertise, in 173 countries worldwide

Access to the world’s largest business consulting and research organization

Multilanguage support with native speakers across the globe (English, French, Dutch, Portuguese, Spanish, Chinese, etc.)


IBM’s global network of business process outsourcing and transformation delivery centers meets clients’ diverse, growing needs

Edmonton

Calgary

Tulsa

Lenexa

Dallas

Houston

Costa RicaBogotá

Buenos Aires

Hortolandia

NashvilleAtlanta

GreenvilleDurhamLexington

Endicott

St. John

MontrealMarkham

Toronto

Greenock

Rotterdam

Newcastle upon Tyne

Dublin

ParisBratislava

Lisbon

Budapest

Athens

Stockholm

Krakow

Chandigarh

Calcutta

Pune

Delhi/Mumbai

Bangalore

Manila

Brisbane

Shanghai

OkinawaTokyo

Dalian

Finance and administration

Procurement

Human resources

Customer relationship management

Industry-specific

In plan


IBM delivers application services seamlessly through delivery centers leveraging IBM’s infrastructure, processes, tools and skilled resources

Edmonton

Guadalajara

Mexico City

San Jose

Caracas

Lima

Asuncion

Montevideo

Buenos AiresMartinez

Capetown

Johannesburg

TorontoMadrid

Barcelona

Eastern European sitesVilnius (Lithuania)Bucharest (Romania)Prague (Czech Republic)Szekesfehervar (Hungary)

India sitesBangalorePuneKolkataChennaiHyderabadDelhi/Gurgaon

China sitesDalianShanghaiShenzhen

Perth

Adelaide

BallaratMelbourne

Brisbane

Sydney

Canberra

Ho Chi Minh

Metro Manila

Tokyo

Brazil sitesHortolandiaSao PauloSao SalvadoreRio de JaneiroNova Lima

Strategic

Regional

Application Services Global Delivery Center (GDC)

Calgary

Vancouver

Hanoi


IBM delivers high-quality infrastructure services to our clients from four hub countries - chosen because they optimize cost, skills, consistency of methodology and cross-functional delivery support

Argentina sitesMartinezCatalinasUrquiza

Brazil sitesHortolandiaSao PauloRio de Janeiro

India sitesBangalorePuneDelhiGurgaonHyderabad

China sitesShanghaiDalianShenzhen


Each region also supports a network of global and regional infrastructure delivery sites for the flexibility that clients expect

North America sites

Atlanta (2)AshburnBoulder ChicagoColumbusDallas LexingtonLos AngelesMiami

CanadaCalgaryTorontoMontreal

Sterling Forest

Gaithersburg

Mexico City

Bogotá

Santiago

Caracas

Hortolandia

Sao Paulo

Montevideo

Buenos Aires

Brno

Dublin

LondonParis

Madrid

Lisbon

Turin

Szekesfehervar

Copenhagen

Johannesburg

DubaiHong Kong

Taipei

ShanghaiTokyo

Seoul

Singapore

BallaratMelbourne

Canberra

AucklandWellington

Sydney

Europe sitesMechelen/NossegemMontpelierMilan (2)EhningenFrankfurtKista/SolnaWinterthurPortsmouth/The NestWarwick

India sitesBangaloreChennaiHyderabad

Japan sitesHagaSagminoKawasakiMakuhariNankoMitakaMihama

Shenzhen

Service Delivery Center

e-business Hosting Services (e-bHS)

Business Continuity andRecovery Services (BCRS)

EMEA Regional Global Delivery Center (GDC)

Global Delivery Center

NewarkPoughkeepsie RaleighRochesterSan JoseSecaucusSouthburySterlingSt. Louis

United States


Business resilience from IBM: helping you reduce risk andoptimize opportunities.

A golf association protects over 500 gigabytes of mission-critical data every day via cloud computing using our business continuity and resiliency services; this includes over four million membership records and more than 150,000 daily e-mails.

A leading UK-based metals trading exchange worked with IBM to design and deploy a fully dedicated, supplemental trading facility capable of 100 percent business continuity as a work area recovery site, saving the firm millions of dollars in trading losses and downtime costs in the event of a disaster.


Business resilience from IBM: helping you reduce risk andoptimize opportunities. (continued)

A European healthcare company was able to cut recoverytimes down to 10-20 minutes and ensure near around-the-clock availability by leveraging business continuity and resiliency services from IBM.

We helped the Austrian government determine the potential business impact of a three-day outage (which was assessed at $US332,813) and then implemented the right resiliency plan to help avoid an outage.


Why IBM: We leverage extensive, global experience.

Our unparalleled experience includes:

More than 40 years of business continuityand disaster recovery experience.

More than a decade of successful customer recoveries and crisis management experience.

More than 10,000 disaster recovery clients.

More than 3,400 information protectionclients with over 42 petabytes of data under management.


Why IBM: We provide broad solution capabilities.

We can address your unique needs through:

Our global resiliency centers, which are designed for multivendor environments,and provide support for more than 200 hardware and software vendors, including HP, Sun Microsystems, Cisco and ourown IBM products.

Proven business process and technology expertise to help you design and implement the right solution for your business.


Thank you for your time today.

For more information, visit:

ibm.com/services/continuity

Contact:

Dennis van HEES, Business Development Executive

E-mail: [email protected]

Theodor STANESCU, Strategy and Architecture Services Manager

E-mail: [email protected]


Trademarks and notes

IBM Corporation 2010

IBM, the IBM logo, ibm.com, System i and System p are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with the appropriate symbol (® or ™), these symbols indicate US registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml

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Other company, product and service names may be trademarks or service marks of others.

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