half prepared?:business survey on disaster recovery

8/3/2019 Half Prepared?:Business Survey on Disaster Recovery

1/16

Halprepared?

A global study into corporate preparedness ordisaster recovery and business continuity

November 2011


2/16

Half prepared? | November 2011 | Page 2

Hal prepared?

The latest global business survey rom Regus revealsthat companies across the world are almost evenlysplit between those that do have a disaster recoveryplan in place or IT systems or workspace and thosethat do not. The main reasons or ailing to have sucha plan in place is reported to be the perceived highcost, although national variations are signicant.

This latest Regus survey, which interviewed over 12,000 senior business peoplein 85 countries, also shows that rms are more likely to have an IT disaster recoveryunction to help them recover operations within 24 hours than to be able to providealternative workspace or their sta, should they be unable to access their usual workpremises due to a disaster More than hal o rms, however, report that they wouldinvest in aordable alternative workplace recovery i the service were suitably priced.

Although larger rms are better prepared or disaster recovery (DR) than smallercompanies, 26% o larger corporates still remain without a DR acility or theirIT systems, and 40% have no workspace DR acility. It is the conclusion o this studythat, given the widespread availability and relative low cost o IT and workspace DR,those organisations with none in place are potentially taking an unnecessary risk withtheir shareholders assets.


3/16


Management Summary

Naturaldisasters,therisingcostsofdowntimeandtheincreasinglymission

critical character o applications have ocused company attention towardsdisaster recovery solutions - yet independent research commissioned by Regusreveals that globally 45% o rms still have no disaster recovery acility or theirIT systems.

Athirdofrespondents(33%)reportthattheperceivedcostsofdisasterrecoveryare prohibitive and more than hal (55%) agree that most rms like theirs wouldbuy the option to access a workspace disaster recovery acility i that optionwere priced at around $100/month.

Itmaybethecasethateconomicpressuresareencouragingmanagementtocut costs by reducing spend on DR. However, given the widespread availabilityo low cost IT system and workspace disaster recovery services and acilitiesin todays marketplace, this may be an area which shareholders and insurers areencouraged to investigate in the light o this surveys ndings.

Companiesthatdohavedisasterrecoveryaremorelikelytohavecomputingsystems up and running within 24 hours (55%), than provide an alternativeworkspace or sta within the same time rame (45%).

Someinterestingnationaldifferencesemerge.Inparticular,inJapanonly37%ofrms have a disaster recovery acility or their IT systems and just under a third

(32%)haveaworkspacedisasterrecovery.

MorecompaniesinAustralia(70%)andGermany(69%)andtheUK(67%)are

prepared or an IT outage than the global average (55%).

Lessthanhalfofconsultingcompanies(46%)haveworkspacedisasterrecovery,

comparedwith57%ofnancialservicescompanies.


4/16


Introduction

Disaster recovery is maturing rom being regardedas an additional saety net to a must-have businesscritical unction and reports indicate that the globaldisaster recovery / business continuity market is set toreach $39 billion in 2015.1 With reports indicating thatthe average incident can cost up to $ 500,000,2 andSymantec revealing that IT is becoming increasinglymission critical to organizations, with 60% o all

applications now deemed mission critical, it is notsurprising to nd that disaster recovery has made itto the oreront o the agenda.3

In addition to causing IT system outages, however, dramatic natural disastersand criminal damage can make it impossible even or sta to access their usualworkplace, severely undercutting productivity unless alternative workspacearrangements can be rapidly provided.

In particular, recent global events have drawn attention to the importance, not onlyo providing rapid IT backup, but also o providing or entirely new premises at veryshort notice in order or businesses to continue operating smoothly. Fires, foods,burglary, criminal damage and natural disasters will all aect both the technology andthe actual workspace where business critical activities are carried out, so althoughpersonnel may be able to access inormation within 24 hours, they may well notbe able to return to the oce or a longer period o time, relying on home internetconnections o varying speeds and no access to oce acilities such as printersandmeetingroomsforexample.Largercompaniesmayalsobeabletorelyon

their larger property portolio to relocate sta in the event o an emergency, criticallyoverlooking the act that oces may be very distant rom each other and not providea suitable space.

ThetragictsunamithathitJapaninMarch2011,majoroodinginAustraliain

January2011,earthquakesinChileandNewZealandanddamagecausedby

Hurricane Irene are just a ew o the natural disasters that aected the world in 2011halting operations and in many cases leaving businesses with damaged premisesand no plan B as to where to relocate their sta. Although these disasters hadglobal resonance and businesses oten have operations set up in various countries,signicant national dierences are revealed when analysing how prepared businessesare or disaster and interruption.

1ContinuityCentral,ABIResearchestimatesbusinesscontinuityanddatadisasterrecoverymarketgrowth,10thMarch20102Symantec,DisasterRecoveryResearchReport,2009

3Symantec,DisasterRecoveryResearchReport,2009


5/16


Introduction

The cost to businesses, but also insurers can be devastating and a joint report by

theBusinessContinuityInstituteandtheCharteredInsuranceInstitutesGeneralInsurance Faculties encouraged the insurance sector to recognise and encourageclients in the development o their own business continuity programmes in terms andpricing o business interruption insurance.4LloydsofLondonhasalsowarnedthatthe insurance industry aces signicant diculties ater record claims ollowing theAustralia,NewZealand,JapanandtheUScatastrophesin2011.Thersthalfo 2011 is in act reported to have been the costliest six-month period in theinsurance markets history.5

ThelatestAcronisreport,forexample,revealsthatGermanyisthecountrywhere

rms are most condent o their back up and business continuity processes, closelyfollowedbytheNetherlands.TherestofEurope,however,faredbadlywiththeUK

and France scoring below average.6IntheUSA,wherejustoverhalfofcompaniestesttheirbackupfacilitiesannually(54%),lessthanathird(29%)hadworkathome

days highlighting that the remaining companies have no measure o whether theircompany can continue to eectively operate with employees entirely working romhome and using their own resources.7

Inadditiontothis,areportidentifyingtheUSandJapanasthecountriesmostlikely

to incur huge expenses due to natural disasters, reports that its emerging economiessuchasChinaandIndiathatposeahigherrisktoinvestorsastheyarelackingthe

capacitytodealwithnaturalcatastrophe.Gartner,fortunately,highlightsthatIndian

companies in particular see improving business continuity in the year ahead as anobjective second only to achieving business growth.8MexicoandCanadawerealsorated as at high risk by the report.9

4TheBusinessContinuityInstituteandtheCharteredInsuranceInstitutesGeneralInsuranceFaculties,Insurancesectorviewsonbusinesscontinuity,20105TheGuardian,LloydsofLondonhitbyrecordclaimsfornaturaldisasters,21stSeptember20116Acronis,TheAcronisGlobalDisasterRecoveryIndex:2011,20117TheConferenceBoard,PreparednessinthePrivateSector-2011,20118ContinuityCentral,GartnersurveyidentiesbusinesscontinuityasoneofthetoptwoprioritiesforIndianorganizations,8thMarch20119

Maplecroft,NaturalHazardsRiskAtlas2011(NRHA),2011


6/16


In order to shed some light on to the level opreparedness o global businesses and their takeup o disaster recovery Regus commissionedresearch canvassing the opinions o over 12,000senior managers and owners o businesses rom85 countries and ound that there is a close to 50-50divide between businesses that have a plan allowingtheir IT systems to return to normal operation within

24 hours and those that do not.The same almost even split is also revealed when respondents were asked whethertheir business had workspace disaster recovery ensuring that sta could eectivelyreturn to work within 24 hours.

The Regus Study

0% 10% 20% 30% 40% 50% 60% 70% 80%

Japan

No Yes

France

China

Brazil

Mexico

Canada

India

USA

Global Average

South Africa

Belgium

Netherlands

UK

Germany

Australia

We have a disaster recovery acility which ensures our computing systemsare up and running within 24 hours


7/16


Although it is an old adage the most important asset to a business are its people,

it would seem that litt le attention is devoted by businesses to ensuring that staare provided with a suitable work location in case o emergency. In act, 45% obusinesses globally do not have vital IT back up and even more, 55% are notprepared to relocate their sta within 24 hours o a disaster taking place.

In particular the IT systems o more than hal o companies in France (54%),China(52%),Brazil(51%),Japan(63%)andMexico(51%)arenotreadytoreturn

operationalwithin24hours.Countriesthatareparticularlyunpreparedtond

alternativeworkspacefortheirstaffincaseofemergencyare:Japan(68%),Canada

(65%),India(60%)andtheUSA(59%).Whileitmaywellbethathighlevelsof

internet penetration in some countries has led business owners to believe that homeaccess is a suitable substitute to the oce in case o an emergency, connectionspeeds may vary, access to oce supplies and technology and the reduction ocollaborative working could become critical.

Globally33%ofrespondentsbelievethatthecostofdisasterrecoveryisprohibitive

and the majority (55%) o rms agree that businesses like their own would be willingto invest around $100/month to access a workspace disaster recovery acility in caseo emergency.

The Regus Study

0% 10% 20% 30% 40% 50% 60% 70% 80%

Japan

No Yes

Canada

India

USA

South Africa

Brazil

Mexico

France

Global Average

UK

China

Australia

Belgium

Germany

Netherlands

We have a disaster recovery acility which ensures an alternative workspacewill be up and running within 24 hours


8/16


While a third o companies believe that the cost o disaster recovery is prohibitive, the

research suggests that there are strong divergences in pricing or perceptions o costacrosstheglobe.Lessthanaquarterofcompaniesbelievethattheseareprohibitive

inAustralia(23%),Belgium(16%),Germany(22%)andtheUK(23%).

Attheotherendofthespectrum,fully50%ofChinesecompaniesbelievethat

businesscontinuityistooexpensive,followedby47%ofrmsinJapan,wheretake

up was the lowest, Mexico (45%) and India (44%).

The Regus Study

0% 10% 20% 30% 40% 50% 60%

Belgium

Germany

Australia

UK

Netherlands

USA

Brazil

France

Global Average

South Africa

Canada

India

Mexico

Japan

China

I believe that the cost o ormal disaster recovery acilities is prohibitive


9/16


A number o workspace disaster recovery solutions are available on the market giving

organisations immediate access to a network o temporary premises, ully unctionalin terms o IT, internet and oce services. These are oten structured on the basiso a small monthly ee that buys the option to access such workspace and acilitiesthe moment a disaster strikes. In other words, the monthly charge contributes to thecost o providing Workplace Recovery space. In other instances, a larger monthlyfeeincorporatestenureforagivennumberofdaysfollowingthedisaster.InChina

(70%),Brazil(66%),India(66%),Mexico(67%)andSouthAfrica(61%)amajorityof

respondents believe other rms like would buy the option to access a workspacedisaster recovery acility i that option were priced at around $100/month. In othergeographies, demand or this kind o acility is expressed by a signicant proportiono respondents.

The Regus Study

0% 10% 20% 30% 40% 50% 60% 70% 80%

UK

Germany

France

Belgium

USA

Australia

Netherlands

Global Average

Japan

Canada

South Africa

Brazil

India

Mexico

China

I believe most rms like mine would buy the option to access a workspacedisaster recovery acility i that option were priced at around $100/month


10/16


0% 10% 20% 30% 40% 50% 60% 70% 80%

Small

We have a disaster recovery facility ensuring alternative workspace is available within 24 hours

We have a disaster recovery facility ensuring IT systems are up and running within 24 hours

Medium

Large

Disasterrecoverybysizeofcompany

The survey also analysed the impact o companysize on the existence o a 24 hour disaster recoveryunction and ound that as companies become largerthey are more likely to have a solution in place both ortheir IT and or their sta.

Company size variations

Only 51% o small businesses have an IT business continuity plan in place compared

tofully74%oflargebusinessesand,inspiteofrelianceonalternativeofcesandbuildings, larger companies (60%) are also ar more likely to have a workspacebusinesscontinuityplaninplacethansmallcompanies(43%).

The perceived cost o disaster recovery is a deterrent to over a third o small rms(36%)andlesssotolargerrms(20%)thathavemoreinfrastructuretoprotectand

sta to relocate. Although more than hal o all rms would purchase a workspacebusiness continuity plan priced at around $100 a month, larger rms (66%) are morelikelytodosothansmallercompanies(53%).


11/16


Understandably, the sector most likely to have anIT disaster recovery plan in place is the nancialservices sector.

Inmanycountries,havingacontinuityplanorsysteminplaceisaformalrequirement

or nancial organisations, but the results suggest that the speed at whichbusinessescanrecoveroperationsvariesasonly71%ofnancialservicesrms

declared that they have an IT disaster recovery plan that ensures they are up andrunningwithin24hours.Anothersurprisingndingisthatstrikingly,only66%ofICT

businesses actually have an IT disaster recovery unction in place.

Consultancy(51%)andmedia(49%)rmsrevealanalmost50/50splitamong

companies that have an IT continuity plan and those that do not. Media rms arealso the least likely to have a workspace disaster recovery alternatives in place(40%), ollowed by consulting rms (46%). Highlighting their greater awareness o thebusinesscontinuityissuenancialservices(57%)andICTbusinesses(55%)aremore

likely to have a workspace recovery system in place ensuring sta can return to theirnormal operations within 24 hours.

Company sector variations

0%

We have a disaster recovery facility ensuring alternative workspace is available within 24 hours

We have a disaster recovery facility ensuring IT systems are up and running within 24 hours

10% 20% 30% 40% 50% 60% 70% 80%

Finance

Consulting

ICT

Media

Disaster recovery solutions by sector


12/16


Media companies, are the most likely to be put o by the perceived cost o disaster

recoverywith43%declaringthattheybelievethecostisprohibitive.Thiscontrastsstronglywithonlyaroundaquarterofrespondentsinthenancialservices(24%)and

ICT(25%)sectorswherecompaniesaremorelikelytohavepurchasedoratleast

investigated the option o purchasing a solution.

Company sector variations


13/16


Across the globe around hal o rms have no ormaldisaster recovery acility in place or their IT or their

workorce. This lack o planning or the recovery oIT operations and or relocating sta that cannotaccess premises could damage businessesirrevocably should they experience extensivedowntime or damage to their premises.

Most businesses appear to run this risk due to the high perceived cost o DisasterRecovery, but also report that they would be willing to pay around $100/month toaccess a workplace recovery acility in case o emergency. This is an importantindication that although the majority o businesses are taking a gamble with theresilience o their operations, the main barrier to overcome is one o perceived costand not mentality.

With more and more aordable business continuity alternatives being made availablearound the globe and national dierences in pricing rapidly disappearing thanks tointernational service providers, it is likely that more businesses will nally stop takingthe risk o expensive business interruption and invest in business continuity plans thatallowtheirsystemsandtheirstafftocontinueworkingseamlesslyfromfullyequipped

locations.

Conclusion


14/16


Regus is the worlds largest provider o fexibleworkplaces, with products and services ranging romully equipped oces to proessional meeting rooms,business lounges and the worlds largest network o

video communication studios. Regus enables peopleto work their way, whether its rom home, on the roador rom an oce.

CustomerssuchasGoogle,GlaxoSmithKline,andNokiajoinhundredsofthousands

o growing small and medium businesses that benet rom outsourcing their oceand workplace needs to Regus, allowing them to ocus on their core activities.

Over900,000customersadaybenetfromRegusfacilitiesspreadacrossaglobal

footprintof1,200locationsin550citiesand92countries,whichallowindividuals

and companies to work wherever, however and whenever they want to. Regus wasfoundedinBrussels,Belgiumin1989,isheadquarteredinLuxembourgandlistedon

theLondonStockExchange.Formoreinformationpleasevisit:www.regus.com

MethodologyOver 12,000 business respondents rom the Regus global contacts databasespanning 85 countries were interviewed during August 2011. The Regusglobal contacts database o over 1 million business-people worldwide is highlyrepresentative o business owners and senior managers across the globe.Respondentswereaskedawidevarietyofquestionsincludingonesabouttheir

economic perormance and expectation, along with their views o the businesscontinuity market and their use o disaster recovery alternatives within their ownrms. The survey was managed and administered by the independent organisation,Mindmetre www.mindmetre.co.uk.

About Regus


15/16


Notes


16/16

Whilst every effort has been taken to verify the accuracyof this information, Regus cannot accept any responsibilityor liability for reliance by any person on this report or any of theinformation, opinions or conclusions set out in this report.

half prepared?:business survey on disaster recovery

Documents