|By Mike Castañeda||
|July 7, 2014 09:30 AM EDT||
Cloud-based Recovery-as-a-Service (RaaS) is becoming big business. Research and Markets forecasts the global market of RaaS and cloud-based business continuity will reach $5.77 billion by 2018, creating major opportunities for business continuity and risk management specialists alike. Likewise, Reportstack announced recently the global Disaster Recovery-as-a Service (DRaaS) market is expected to grow at a Compound Annual Growth Rate (CAGR) of 54.64 percent from 2014 to 2018.
One of the leading drivers for small and mid-size businesses (SMBs) as well as enterprises seeking cloud solutions is Disaster Recovery (DR).Organizations seek improved resiliency and failover in response to service disruptions of all kinds including natural disasters, cyber-attacks and technical malfunctions. In 2013, the financial impact of natural disasters worldwide was more than double the $100 billion estimate of 1990.McAfee® Labs Threats Report indicates service disruptions are inevitable and becoming more predictable, with a reported 20 million new types of malware in the third quarter of 2013 alone. In a recent survey, IDC found that 71 percent of respondents experienced less than 10 hours of annual downtime, with a projected financial impact for SMBs of $125,000. Larger enterprise organizations could potentially have a corresponding annual financial impact of $17 million. Dun & Bradstreet surveyed Fortune 500 companies with 59% of respondents reporting 1.5 hours of downtime each week, amounting to a projected $46 million impact annually for companies of 10,000 employees or more.
However, the impact may be even greater. In a 2013 Ponemon Institute study, 91 percent of the participants reported that their organizations experienced unplanned downtime in the past two years. When you consider it takes about two days to recover from an IT event, if at all, the cost can be much higher in terms of lost revenue and damage to a company's reputation through reduced customer loyalty.
Floods, mudslides, ice and snow storms, hurricanes, tornados and cyclones, fires and droughts have one thing in common: all can have a negative financial impact on day-to-day business. Hurricane Sandy ranked as the largest global disaster in 2012 with a price tag of $65 billion. At the same time, New Jersey residents and municipalities had to cover an additional $8 million to $13 million in unmet expenses. Businesses are still trying to recover from the hurricane, with many resorting to bankruptcy protection. In 2013, 296 adverse weather events, predominantly in Europe and Asia, caused $192 billion in worldwide economic losses. Although the dollar amount was 4 percent less than the 10-year average, the number of events was greater than the 10-year average of 259.
Other factors generating a need for Disaster Recovery planning include the risk potential from cyber attacks on Wi-Fi access into secure networks, Distributed Denial of Service (DDoS) attacks, resistant malware, insider threats, attacks on employee-owned device, or bring your own device (BYOD), and breakdowns with out-of-date, legacy systems.
Banks have been particularly hard hit in the last couple of years by DDoS attacks, prompting an April 2014 notice from the Federal Financial Institutions Examination Council (FFIEC), which requires banks to assess risk, monitor, and develop response plans to mitigate against DDoS attacks. Attacks are becoming more sophisticated and can shut down business activity, slow website connections or prevent access to institutional websites. These attacks can be system-wide or come in via peripherals. For instance, an unsecured keyboard video mouse (KVM) switch allows cyber attackers to capture keystrokes and password information or access information through unauthorized universal serial bus (USB) devices and microphones.
Cybercriminals are becoming stealthy and developing tools and botnet source codes that are increasingly complex and capable of avoiding detection. Cryptolocker, for instance, can be delivered by e-mail and is added to the start-up menu. It encrypts the data, infects the system and locks the organization out. Criminals then demand a ransom to unlock the data.
Today, 31 percent of PCs continue to run on Windows XP operating systems. It's not just PCs that are at risk, as a number of medical devices and point of sale (POS) systems use Windows to run transactions, and the systems are not consistently updated. In April 2014, Microsoft announced it would no longer provide support and updates, placing systems and equipment at increased risk for cyber attacks. Because enterprise and institutions invest so much time and money in legacy hardware and software, these systems will require expert knowledge moving forward to maintain system security.
Business Continuity Planning is No Longer Optional
All of these factors point to the need for systematic security planning. Business Continuity Management (BCM) refers to the plans executed and activities performed on a daily basis to maintain business consistency and ensure critical business systems will be available when disaster strikes. And although the term Business Continuity Management is used interchangeably with DR, it is considered to be a separate, overarching strategic plan which includes disaster recovery, crisis management, incident response and contingency planning, as well as business impact analysis, recovery time objective (RTO) and recovery point objective (RPO).
BCM is a set of processes and practices created to identify and mitigate threats and their potential impact while providing the framework to prevent, mitigate and recover from disruptions of all kinds including the implementation of new programs, processes, system virtualization and other process shifts. And, although closely related, DR is more about the process of building continuity capabilities for infrastructure and applications. More specifically, DR is the business' ability to maintain critical operations and provide services during a disruptive event.
Disaster recovery and business continuity continue to rank as two of today's top business concerns due to the prevalence of natural and man-made disruptions. A recent Continuity Insights and KPMG Continuity Management Program Benchmarking study was conducted to determine whether enterprise organizations are prepared for a disruptive event. The study involved 434 executives from 22 countries. Approximately 71 percent of those surveyed indicated a senior management board had been established for the purpose of developing a BCM, which made a big difference when conducting business impact analyses (BIAs), recovery objectives, adopting global standards and addressing cyber security issues. However, 36 percent of the respondents indicated they did not address cyber terrorism issues in the BCM. More than half of those surveyed stated they were prompted to initiate a BCM plan, DR plan or crisis management plan due to a disruption. Outages were due to weather problems, power interruptions and IT security issues and represented a nine percent increase in disruptions over the previous year's responses.
Zero Tolerance for Downtime
New technologies and business trends such as virtualization and mobile device BYOD policies, cloud computing, real-time data analysis, e-commerce, third-party cloud-based providers, and globalization are prompting more companies to establish DR and BCM plans as part of overall business strategies. These trends make 24x7 availability the number one priority. At the same time, enterprise organizations are seeking fast Internet speeds, real-time information and ubiquitous connectivity to remain competitive, which leaves no room for downtime.
So, what is the cost if a business continuity plan is not instituted? Plenty, according to leading analysts. In a published study by Touche Ross and ioSafe, companies without a DR plan have a survival rate of less than 10 percent. Gartner, a leading information technology research company, breaks it down even further, predicting 25 percent of PCs will fail this year, while mid-sized companies will experience about 20 hours of network, system and application downtime at an average cost of $70,000 an hour. Forrester, another leading research company, predicts that 24 percent of companies will have a full data disaster.
Business Continuity Planning is Key
In its annual business continuity trends study, Continuity Central reports some interesting findings in the way survey respondents are handling business continuity this year. More than half of those surveyed expect to make small changes to existing BCM plans in 2014, while a quarter of the respondents are expecting bigger changes, and eight percent anticipate a more thoroughly integrated plan. Five percent will implement ISO 22301 projects this year. As the first international standard developed for BCM, the ISO 22301 specifies what requirements businesses must meet to ensure the business recovers from a disaster or disruptive event.
Secure Data with Cloud Computing
Now that cloud computing has matured as a platform, more companies are beginning to trust that moving critical data to the cloud will ensure against loss in the event of a disaster or event. Forbes predicts that overall cloud spending will grow by about 25% this year, reaching $100 billion for software and services as well as cloud infrastructure. More SMBs will join the cloud at a growth rate of 20 percent over the next five years and more mid-sized companies will move to public clouds.
More companies are seeking ways to reduce the cost of DR, which represents about 25 percent of the overall IT budget, without sacrificing security. However, as network architecture gains complexity, data recovery from on-site storage is becoming a long and arduous process, and on-site backup and restore has increased risk associated with it due to its potential for failure. The cost becomes even greater when organizations put time, effort and money into additional architecture to mirror all servers, applications, data, software and network connections. To that point, CIOs realize cloud storage poses less of a risk while the recovery process makes sound financial sense. Cost avoidance is gained as enterprise no longer needs to make large capital investments and infrastructure upgrades to maintain availability.
Cloud Service Providers (CSPs) offer a range of storage options and as-a-service offerings, which makes DRaaS a faster and more simplified process. Likewise, virtualized servers have brought down the cost of cloud storage, making it easier for SMBs to compete on the same level as larger organizations.
DRaaS Provides a Low Cost Solution
DRaaS is a flexible platform, enabling enterprise organizations to choose whether it's necessary to restore the entire organizational infrastructure or just critical applications. Organizations gain more control because they get to decide how data should be saved and what critical infrastructure needs to be restored and in what order. A recent study by the Aberdeen Group reports DRaaS is growing as the preferred solution because it reduces the risk of losing critical business data and experiencing a business interruption; critical applications can be up and running in minutes, not days; and it's a faster way of bringing the business back to normal.
Benefits of DRaaS as a pay-as-you-go recovery model are lower costs and minimized downtime as applications are automatically restarted once the problem is identified. Because DRaaS is on a virtual platform rather than on an on-site server, business continuity requirements to meet performance standards and consistency can also be achieved. A virtual backup site provides much needed data replication while providing faster recovery time at a lower cost because it runs on higher capacity, shared architecture. Testing can occur more frequently, because the system is always ready and does not have to be placed offline to test.
Creating a Business Continuity Plan
A greater number of businesses today are taking advantage of cost-effective, pay-as-you-go DRaaS and BCM plans. BCM takes into account the scope of requirements for backup and restoration of data, applications, systems and in some cases, facilities, to ensure business continuity when disaster strikes. The first step when developing DRaaS or BCM is finding the right cloud service provider to help your organization determine solution architecture to meet your recovery performance needs and requirements; this can be done by performing a business impact analysis with a qualified professional. Once complete, a feasibility plan is needed to ensure proper procedures are implemented and followed. Results must then be measured by testing the system repeatedly for availability, completeness and verified backup. The plan should then be shared with key personnel so everyone knows their roles and responsibilities when downtime occurs.
The Future of DRaaS and BCM
DRaaS will continue to gain market strength as a solution this year while evolving to better meet customer requirements. The service is expected to become faster while efficiently optimizing infrastructure storage and servers. Virtualization will be key to meeting customer service level agreements while addressing recovery point and recovery time objectives. Platform flexibility will be integrated with self-service for larger companies with internal IT staff. Expect more companies to ask for a hybrid combination of DR strategies combining on-premise backup solutions with cloud platforms for data archiving and recovery. This way, on-site and cloud applications can be synched for rapid recovery.
Some customers will seek multiple CSPs for different cloud services, opening up new opportunities for vendors and risk management specialists. Storage is expected to double in growth in 10 years, while IT staff remains in demand. CSPs and risk management specialists who can serve as trusted IT advisors will be better positioned to take advantage of opportunities from companies seeking purpose-built back-up solutions. While at the same time, CSPs who enact simple, consumer-oriented pricing strategies will make decision-making easier for enterprise and speed up the sales cycle for solution specialists and channel partners. Last but not least, giving the customers what they want, true customer support, can make the difference in building a larger customer base and improving customer loyalty.
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
May. 2, 2016 05:15 PM EDT Reads: 958
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
May. 2, 2016 05:00 PM EDT Reads: 1,069
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
May. 2, 2016 03:45 PM EDT Reads: 1,325
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
May. 2, 2016 03:30 PM EDT Reads: 1,044
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
May. 2, 2016 03:00 PM EDT Reads: 287
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
May. 2, 2016 02:45 PM EDT Reads: 1,058
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
May. 2, 2016 02:00 PM EDT Reads: 922
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
May. 2, 2016 12:30 PM EDT Reads: 1,267
You deployed your app with the Bluemix PaaS and it's gaining some serious traction, so it's time to make some tweaks. Did you design your application in a way that it can scale in the cloud? Were you even thinking about the cloud when you built the app? If not, chances are your app is going to break. Check out this webcast to learn various techniques for designing applications that will scale successfully in Bluemix, for the confidence you need to take your apps to the next level and beyond.
May. 2, 2016 12:00 PM EDT Reads: 1,541
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
May. 2, 2016 11:45 AM EDT Reads: 934
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including cloud...
May. 2, 2016 10:00 AM EDT Reads: 2,621
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
May. 2, 2016 10:00 AM EDT Reads: 1,015
Unless you don’t use the internet, don’t live in California, or haven’t been paying attention to the recent news… you should be aware that self-driving cars are on their way to becoming a reality. I have seen them – they are real. If you believe in the future reality of self-driving cars, then continue reading on. If you don’t believe in the future possibilities, then I am not sure what to do to convince you other than discuss the very real changes that will roll out with the consumer producti...
May. 2, 2016 08:45 AM EDT Reads: 660
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
May. 2, 2016 08:45 AM EDT Reads: 783
SYS-CON Events announced today that Enzu, a leading provider of cloud hosting solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to foc...
May. 2, 2016 08:30 AM EDT Reads: 1,074
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
May. 2, 2016 06:30 AM EDT Reads: 2,532
The IoT has the potential to create a renaissance of manufacturing in the US and elsewhere. In his session at 18th Cloud Expo, Florent Solt, CTO and chief architect of Netvibes, will discuss how the expected exponential increase in the amount of data that will be processed, transported, stored, and accessed means there will be a huge demand for smart technologies to deliver it. Florent Solt is the CTO and chief architect of Netvibes. Prior to joining Netvibes in 2007, he co-founded Rift Technol...
May. 1, 2016 11:00 PM EDT Reads: 1,612
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
May. 1, 2016 05:00 PM EDT Reads: 1,066
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
May. 1, 2016 04:30 PM EDT Reads: 1,521
SYS-CON Events announced today that Stratoscale, the software company developing the next generation data center operating system, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Stratoscale is revolutionizing the data center with a zero-to-cloud-in-minutes solution. With Stratoscale’s hardware-agnostic, Software Defined Data Center (SDDC) solution to store everything, run anything and scale everywhere...
May. 1, 2016 01:30 PM EDT Reads: 1,601