Obstacles to Disaster
By MIKE DENAPOLI
Until recently, obstacles such as cost, “low-risk” perception, limited staff, and lack of technical knowledge have stymied disaster recovery (DR) planning for many businesses. While these con- cerns may have been valid reasons to neglect DR planning five years ago, technological advance- ments are now changing this scenario. Today, for most businesses, DR planning is not only affordable
but essential. When com-
hour. So when you begin exploring DR plans, first focus on how
your data is directly plugged into lost revenue and consider the
consequences of downtime:
U How much money would your company lose if all transaction data
was lost, whether for the last 12 hours or the last 10 minutes?
U What is the value of the knowledge embedded in emails and
U What would it cost to have your engineers recreate hours of work?
U How much vision and hard work can you afford to lose?
U What is the cost in employee wages when servers are down?
U How much money is lost when customers can’t buy your products
online or access technical or customer service?
U What regulatory compliance fines do you face if you can’t record and
U What is your business reputation worth?
Because knowledge of downtime costs is essential for any
business relying on data, there are several online downtime calculators. However, below is a simple formula:
Cost Per Occurrence = (To + Td) x (Hr + Lr)
the four myths that have
prevented them from engaging in DR planning
in the past, they are likely to discover that those obstacles are
more myth than reality.
Myth 1: It’s too expensive
Today’s DR plans cost a fraction of what they did a decade
ago. In fact, a DR plan costs a fraction of what the average hour
of downtime costs, which often equates to more than $40,000 per
Td: Time delta to data backup (How long since the last
Hr: Hourly rate of personnel (Calculate by monthly expense
per department divided by the number of work hours.)
Lr: Lost revenue per hour (Applies if the department generates profit. A good rule of thumb is three months of profitability
divided by the number of work hours.)