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Maximizing Uptime and Your Firm's Bottom Line: Understanding risk and budget when evaluating business continuity & disaster recovery protocols Michael Kemps Chief Executive Officer and Legal Technology Consultant

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Page 1: Maximizing Uptime and Your Firm's Bottom Line: Understanding risk and budget when evaluating business continuity & disaster recovery protocols Michael

Maximizing Uptime and Your Firm's

Bottom Line: Understanding risk and budget

when evaluating business continuity & disaster recovery

protocols

Michael KempsChief Executive Officer and Legal Technology Consultant

Page 2: Maximizing Uptime and Your Firm's Bottom Line: Understanding risk and budget when evaluating business continuity & disaster recovery protocols Michael

Interactive AgendaWhat is Disaster Recovery

Causes and Harm of Downtime

RPO and RTO

Hot Site vs. Outsourced vs. RaaS (Recovery as a Service)

Budget Consideration

E-Mail Continuity - Mimecast

Questions & Discussion

Page 3: Maximizing Uptime and Your Firm's Bottom Line: Understanding risk and budget when evaluating business continuity & disaster recovery protocols Michael

What is Disaster Recovery?• The process, policies and procedures of

restoring operations critical to the resumption of business

• Regaining access to data, communications and workspace

• Resuming business processes after a natural or human-induced disaster

Page 4: Maximizing Uptime and Your Firm's Bottom Line: Understanding risk and budget when evaluating business continuity & disaster recovery protocols Michael

The Causes of Data Center Downtime

Human Error 23%

Unexpected Patches / Updates 22%

Server Room Envi-ronment Issues 17%

Power Outages 11%

On-Site Disaster 10%

Virus / Malware At-tack 7%

Hardware Error / Theft 5%

Natural Disaster 4%

Source: Symantec, 2011

Page 5: Maximizing Uptime and Your Firm's Bottom Line: Understanding risk and budget when evaluating business continuity & disaster recovery protocols Michael

Harm of Downtime

• Reputation / client service• Fine / legal penalties• Lost revenue• Lost productivity• Security• Decreased employee productivity• IT resource stress• Brand damage• Non-compliance with regulatory requirements

Page 6: Maximizing Uptime and Your Firm's Bottom Line: Understanding risk and budget when evaluating business continuity & disaster recovery protocols Michael

Business Impact: Risks

Source: IBM, 2010

Freq

uenc

y Pe

r Yea

r

Consequences or Cost of Loss

Virus

Disk Failure

Data Corruption

Data Growth

Worms

Data Driven

Business Driven

Event Driven

System Availability Failure

Application Outage

GovernanceNew Products

ComplianceMarketing Campaigns

Workplace InaccessibilityAudits

Political EventsNatural Disaster

Mergers and AcquisitionsBuilding Fire

Pandemic

Failure to Meet Industry Standards

Regional Power Failures

Long Term Data Preservation

Network Problem

1,000

100

10

1

Every10

Years

Every10,000 Years

Page 7: Maximizing Uptime and Your Firm's Bottom Line: Understanding risk and budget when evaluating business continuity & disaster recovery protocols Michael

Risk Tolerance Prioritization

Risk Scoring • IMPACT if risk occurs• LIKELIHOOD of occurrence

Low High Im

pact

LikelihoodLow

High

Highest Priority

Lowest Priority

Medium Priority

Medium Priority

Page 8: Maximizing Uptime and Your Firm's Bottom Line: Understanding risk and budget when evaluating business continuity & disaster recovery protocols Michael

RPO and RTO• RPO: “recovery point objective” The point in

time to which data must be restored to successfully resume processing. Often thought of as time between last backup and when outage occurred.

• RTO: “recovery time objective” The time within which business functions or applications must be restored, including time before disaster is declared and time to perform tasks.

Page 9: Maximizing Uptime and Your Firm's Bottom Line: Understanding risk and budget when evaluating business continuity & disaster recovery protocols Michael

Solutions• Hot Site (Do-it-yourself)

• Outsourced Solution Provider

• Recovery as a Service (RaaS)

Page 10: Maximizing Uptime and Your Firm's Bottom Line: Understanding risk and budget when evaluating business continuity & disaster recovery protocols Michael

Hot Site (Do-it-yourself)• Firm builds a replica server room in a rented

colocation datacenter or second office• Includes leased lines for communication, power, and

cooling. All hardware and software is purchased and maintained by the firm.

• Benefits• Performance is only limited by what the firm is willing

to pay• RTO is potentially the highest of all solutions• RPO is potentially the highest of all solutions

Page 11: Maximizing Uptime and Your Firm's Bottom Line: Understanding risk and budget when evaluating business continuity & disaster recovery protocols Michael

Hot Site (Do-it-yourself)• Disadvantages

• Cost• Potentially more than doubles the cost of the

production environment• Ongoing maintenance

• Complexity• The firm is responsible for the patching and

maintenance of two disparate datacenters• Hardware/Software Drift

• Monitoring• The firm is responsible for all monitoring of the

replication and readiness for recovery

Page 12: Maximizing Uptime and Your Firm's Bottom Line: Understanding risk and budget when evaluating business continuity & disaster recovery protocols Michael

Outsourced Solution Provider• Similar technology and architecture to do it

yourself• Firm contracts with a third party to build a

replica server room in a rented colocation datacenter or cloud provider• All hardware and software is purchased by the firm,

but maintained by the third party vendor.

• Benefits• Outsourced expertise that is not available with in-

house resources.

Page 13: Maximizing Uptime and Your Firm's Bottom Line: Understanding risk and budget when evaluating business continuity & disaster recovery protocols Michael

Outsourced Solution Provider• Disadvantages

• Cost• Similar cost structure to the Hot Site option, with

the added cost of the third party • Ongoing cost from the third party

• Knowledge is not retained in-house• Provider’s capacity potentially limited during

the disaster

Page 14: Maximizing Uptime and Your Firm's Bottom Line: Understanding risk and budget when evaluating business continuity & disaster recovery protocols Michael

RaaS (Recovery as a Service)• RaaS

• Local disk backup with replication of firm data to the vendor’s data center; the vendor can host the firm’s servers as required

• Benefits• Eliminate complexity of DR• DR infrastructure is managed by the vendor• Economies of scale and lower cost• High RPO / RTO • SSAE 16, or ISO/IEC 2001, and ISO 9001

Certified Data Centers

Page 15: Maximizing Uptime and Your Firm's Bottom Line: Understanding risk and budget when evaluating business continuity & disaster recovery protocols Michael

RaaS (Recovery as a Service)• Performance

• Adequate performance but limited by vendors infrastructure

• Control• Firm data stored on third party equipment

• Mitigated by contractual obligations

• Monthly cost based on number of servers and size of data replicated to the facility• Grows over time• Not necessarily predictable

Page 16: Maximizing Uptime and Your Firm's Bottom Line: Understanding risk and budget when evaluating business continuity & disaster recovery protocols Michael

Model Downtime CostsCalculate the labor cost of an outage:• Labor Cost = P x I x R x H• P = number of people affected• I = percentage impact• R = average employee cost per

hour• H = number of hours of outage

Calculate revenue loss during an outage:• Lost Revenue = ( GR / TH ) x I x H• GR = gross yearly revenue• TH = total yearly business hours• I = percentage impact• H = number of hours of outage

Page 17: Maximizing Uptime and Your Firm's Bottom Line: Understanding risk and budget when evaluating business continuity & disaster recovery protocols Michael

Budgeting Methodology: Step 1• Determine

• Risk tolerance objectives• Service level and approach• Functionality• Level of expertise and automation required• Determine technology, implementation and

support costs• Project costs for life span of selected approach ( Year

1, 2, 3 )

Page 18: Maximizing Uptime and Your Firm's Bottom Line: Understanding risk and budget when evaluating business continuity & disaster recovery protocols Michael

Budgeting Methodology: Step 2

• Which approach is right for you?• Do It Yourself• Outsourced Solution Provider• Recovery as a Service ( RaaS )

• Apply budgeting methodology template and determine the most appropriate approach

• Templates provided upon request

Page 19: Maximizing Uptime and Your Firm's Bottom Line: Understanding risk and budget when evaluating business continuity & disaster recovery protocols Michael

E-Mail Continuity - Mimecast• Enables continuous communication with

clients• Always on e-mail recovery

• Archive functionality• Smaller/faster local mailboxes, while

maintaining full searchability• Feature Rich E-Mail Platform

• E-Discovery• Encryption• Closed Circuit Messaging• Anti-Virus/Anti-Spam

Page 20: Maximizing Uptime and Your Firm's Bottom Line: Understanding risk and budget when evaluating business continuity & disaster recovery protocols Michael

Microsoft Outlook

Microsoft Exchange

2010

Page 21: Maximizing Uptime and Your Firm's Bottom Line: Understanding risk and budget when evaluating business continuity & disaster recovery protocols Michael

Microsoft Outlook

Microsoft Exchange

2010

Page 22: Maximizing Uptime and Your Firm's Bottom Line: Understanding risk and budget when evaluating business continuity & disaster recovery protocols Michael

Disaster Recovery Planning• Technology alone is not enough

• Establish a plan• Risk analysis• Establish priorities • Develop recovery strategies• Document your plan• Test your plan• Implement your plan

Page 23: Maximizing Uptime and Your Firm's Bottom Line: Understanding risk and budget when evaluating business continuity & disaster recovery protocols Michael

Thank you!

Contact information for questions or guidance:

Michael [email protected](800) 541-0450