Justifying an Investment in Disaster Recovery

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1 Justifying an Investment in Disaster Recovery Presented by: Ward Quarles Director, Marketing & Communications WTS, Inc. Candide Lopez Vice President, Information Technology Bal Seal Engineering

2 Introductions Candide Lopez Vice President of Information Technology for Bal Seal Worked with JD Edwards for 13 years & over 15 years in IT industry Organization performed 3 DR tests (April 2009 June 2011)

3 Introductions Bal Seal Engineering Running JD Edwards EnterpriseOne 8.12 Develops e and produces engineered ee ed sealing solutions o s and unique canted-coil spring products for use in medical electronics, analytical, medical device, aerospace, defense, energy management, automotive and other industrial companies Most notable are contributions toward artificial pacemaker devices RPO of 8 hours and an RTO of 24 hours

4 Introductions Ward Quarles Ward Quarles, Director of Marketing & Communications for WTS WTS focus is on Hosting Oracle JD Edwards solutions including Disaster Recovery, High Availability solutions, Infrastructure as a Service, and complementary product support 17 years with JD Edwards in Development, Customer Support and Marketing Frequent speaker at Quest Collaborate and other Oracle events

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9 What is a Disaster? 9

10 Oracle Customer Recovery Profile It s a fact: 12% don t have a recovery solution or plan 24% have an IBM or SunGard warm-site solution in place and have never completed a successful test 25% have an in-house, same site recovery solution

11 A Poor Availability Solution Guarantees Loss of Data Business Disruption Conflict Potentially Lost Customers 11

12 Disaster Recovery Goals THE GOAL Minimize business downtime Meet your recovery objectives Restore availability of critical business systems Interruption to business measured in hours and minutes rather than days 12

13 No one wants to be in a position of explaining why your organization could not recover from a disaster. 13

14 What is a Disaster? ANYTHING that stops your business from functioning and that cannot be corrected within an acceptable amount of time. 14

15 According to WTS Anything unexpected that restricts access to your JD Edwards is a disaster. Natural or regional disasters Extended Power Outages Operator Error Hardware or Disk Failures Malicious Insider/Outsider Attack Planned Maintenance Gone Wrong YOU Decide what Constitutes a Disaster! 15

16 Definitions Availability System uptime measured as a percentage of continuous access to your data and applications. Business Continuity A strategy that ensures business operations will continue despite a service interruption. ti Disaster Recovery Plan Documented and tested plan listing your business recovery objectives and priorities. Downtime The amount of time that users cannot access systems, whether planned or unplanned. High Availability Solutions that provide continuous operations with limited disruptions. Recovery Point Objective (RPO) Measurement of the point in time that your company needs data to be restored. Tolerance for loss of data. Recovery Time Objective (RTO) Measurement of the length of time that your company needs to resume near normal business. Tolerance for loss of system access.

17 Recovery Point Objective (RPO) How much data loss can your risk? Most organizations depend on backups to protect their data. Recovery from backups defined in hours to days. High Availability recovery in minutes to hours. Minutes Hours Days

18 Recovery Time Objective (RTO) Resumption Point of Disruption of operations (Business or Data Processing) Time-Sensitive Systems Operational with Current & Accurate Data RTO Business Processes Functional time

19 Common Disaster Recovery Exposures No documented DR plan or process No recovery facility Local tape storage Equipment constraints Human resource limitations Lack of JD Edwards expertise Loss of data (Recovery Point > 24 hours) Lengthy recovery (Recovery Time > 48 hours) No recent test to validate recovery ability 19

20 JD Edwards Customer Requirements Reduce risk and exposure Proven and reliable disaster recovery solution Meet corporate disaster recovery objectives Meet budgetary requirements Scalable to meet future needs RTO and RPO assurance Successful, documented annual testing Geographic diversity for recovery center 20

21 Need more definitions? Review with your recovery provider Check with other Oracle partners Use independent experts Vision Solutions -Recovery-Center-toolkit.aspx

22 Types of Downtime Planned Backups System Maintenance Software Upgrades Hardware Maintenance Unplanned Natural Disasters Viruses Hardware Failure Network Disruptions Loss of Environmental Controls

23 Impact of System Unavailability Lost Productivity The number of hours of downtime times the number of employees at their burdened hourly rate. Lost Revenue The cost of the direct loss of incremental business during the period of system interruption. Additional Expenses The cost of additional employees to assist with changes in business processes, the cost of additional or replacement equipment, staff overtime during the interruption, and travel or shipping costs to perform the recovery. Financial Performance The impact to corporate cash flow, loss of discounts for timely vendor payments, and decrease in external market valuation.

24 Determining the Cost of Downtime Number of employees effected times their hourly rate Lost revenue Lost productivity Penalties Payroll Customer retention Additional associated costs like travel or shipping

25 Cost of Downtime Bal Seal (within 8 hour period) Labor costs: $ 81, Lost Revenue: $109, Total Downtime: $190, Hourly Downtime: $ 23,820.00

26 Downtime Calculators Review with your recovery provider Abundant sources on the Internet Use independent experts

27 Cost of Declaring a Disaster Declaration Fees Travel and Accommodations Tape Recall Daily Use Fees Reversing the Recovery How do you get back to your data center?

28 Lessons Learned Bal Seal While the least cost solution, tape is not the best solution! 8 hours easily becomes 48 hours. Have tapes picked up daily and store in disk safe Test, test, test we have discovered more issues through testing than any other method Make sure users can access the recovery site Remote sites can run the business in a disaster only if they are fully functioning: data entry, printing, shipping, etc. Minimize the T1 systems to truly those that are mission critical.

29 In Conclusion Your goal is continuation of business operations. It is not enough to only arrange for hardware replacement. Planning must address equipment, staffing, and recovery skills. Task at hand is to educate executive management on existing vulnerabilities. Present solutions along with associated costs.

30 Disaster Recovery as a Managed Service WTS will: Perform a backup & recovery assessment Perform a full recovery as part of assessment Provide recovery documentation Provide WTS equipment for a recovery Conduct with customer one full recovery test each year Perform a full recovery in a disaster Establish network connectivity (VPN) Work with your internal and external auditors 30

31 Value add Services to Minimize Your Risk High Availability For iseries and xseries equipment Data Replication Supports Highly Available solutions Mimix for OS/400 Double Take for SQL and Oracle Data Vaulting Avamar/ Data Domain Combine with Data Replication Virtualization

32 WTS Business Continuity Expertise Knowledgeable JD Edwards staff dedicated to recovering your production configuration Supported 18 computer room disasters Conducted over 200 disaster recovery tests Performing 2 recovery tests t per week for our customers 24x7 datacenter facility staffing SAS70 Type II audit for SOX compliance Experience and tested best business practices for JD Edwards software customers 32

33 As a thank you for attending, WTS will send you a copy of our JD Edwards Disaster Recovery Planning Guide. Disaster Recovery Self Assessment available from our website at: t /di t 33

34 Thank you for your participation! Questions? Ward Quarles Director, Marketing & Communications WTS, Inc

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