Enterprises Are Leveraging Managed Server Hosting and Hybrid Clouds to Ensure Earth-Bound, Rock-Solid Availability of Their Business Applications

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1 Cloud Cover Enterprises Are Leveraging Managed Server Hosting and Hybrid Clouds to Ensure Earth-Bound, Rock-Solid Availability of Their Business Applications

2 Cloud Cover: Enterprises Are Leveraging Managed Server Hosting and Hybrid Clouds to Ensure Earth-Bound, Rock-Solid Availability of Their Business Applications When it comes to enterprise business application performance, there is not a second to lose. Companies are pushing their applications and infrastructures harder than ever before. A major network outage or data center failure doesn t just disrupt business it can interrupt it completely until service is restored. And with so much of today s infrastructure online, that can be an expensive experience for a company. Just how much does it cost? For 95% of large companies, a single hour lost to a system disruption can exceed $100,000, 1 while recovering from an unplanned data center outage can approach $1 million. 2 $100,000 per hour Cloud Cover: Leveraging Managed Server Hosting and Hybrid Clouds Page 1

3 What can be disruptive for some businesses can be truly calamitous for others. IT downtime surveys typically focus on internal costs. It s far harder to calculate an outage s impact on a company s revenues, customer satisfaction, employee productivity, and brand reputation. Among the hardest hit are pure-play e-commerce firms, SaaS providers, and any enterprise whose entire business model depends upon continuous uptime and high-speed processing. Financial services, retail, and utilities come quickly to mind. Interestingly, when companies looked at the root causes of expensive data center outages: equipment failures, human error, and capacity issues outpaced cyber attacks as the issues for the system failures. 3 Some 52% of respondents believed that the systemic IT outages they experienced could have been prevented with better management strategies, best practices, resources, and equipment testing. 4 This paper argues that managed server hosting services are the best way for enterprises to prevent crippling outages, while enabling critical operations and business growth. Rackspace s managed server platform and service offerings allow customers to add resilience to their applications without adding costly headcount to their IT teams. Rackspace meets enterprises hosting needs so that they can focus on delivering and growing their business. The new SLAs typically deliver 100%. Can anyone blame companies for wanting continuous uptime? Many enterprises now require that business partners provide service level agreements (SLAs) that ensure their vital systems will be available 100% of the time. It seems that when it comes to business there isn t a second to lose. Companies are well aware that competitors will use IT issues to their advantage, offering free trials, lower pricing, or new services to lure customers away. Cloud Cover: Leveraging Managed Server Hosting and Hybrid Clouds Page 2

4 The high costs of failure. When systems go down, they take their companies with them. Issues companies experience when their networks aren t reliable include: Lost revenues due to missed business opportunities. IT teams diverted to problem-solving rather than focused on strategic projects. Business-critical data and applications that may be unavailable for hours. Enterprise operations that grind to a standstill if the outage is pervasive. Customers who quickly become disgruntled, demand resolution timeframes, and pour out their outrage on social media. Lost business if outages are extensive or recurring. Reputational damage when news of the outage and its cost to clients spreads. Data center outages are the most expensive IT system failures. An unplanned system outage costs more than $7,900 a minute and requires an average recovery time of 119 minutes for a cost of $901, Seconds Downtime = $7,900 Microsoft SQL Server AlwaysOn functionality gives Rackspace and its customers flexible and robust options for integrating high availability, scalability, and disaster recovery into hosted application environments. Cloud Cover: Leveraging Managed Server Hosting and Hybrid Clouds Page 3

5 Making the call: Colocation or managed server hosting? In an always on world, it s not surprising that companies think long and hard about their server management strategies. Companies typically use one of two approaches colocated server hosting or managed server hosting to gain the performance, security, and availability they require. This paper explores why managed server hosting is a better alternative than colocation to achieving these goals, while enabling enterprises to acquire a host of other technology and business benefits. Colocation Managed Trends driving high availability heavenward. With global business, it s pedal to the metal. Enterprises rely on high availability to respond to the following trends: Address cutthroat competition from both traditional incumbents and upstarts. Enable 24/7 business practices that provide instant responsiveness. Provide continuous information sharing among employees and trusted experts. Anticipate industry disruption where change is the only constant. Closely link business partners and vendors supply chains. Manage increasingly complex technology systems that have more failure points. Meet stringent industry regulations that require continuous availability of systems. Serve fickle, price-sensitive customers who have a wealth of options available. Rapidly develop, test, market, and evolve new offerings. Cloud Cover: Leveraging Managed Server Hosting and Hybrid Clouds Page 4

6 High availability isn t just the trend du jour: It s an absolute essential for technologydriven companies. Enterprises want the assurance that the systems that power their business will deliver exceptional reliability and performance. Business-critical applications enable strategic decision making. They also fuel and automate critical processes, connect employees to productivity and collaboration tools and each other, and enable customers to perform self-service tasks. Managed server hosting has evolved from commodity hardware delivery to specialized services that leverage cloud and dedicated servers to meet customer needs. The Microsoft SQL Server platform and Rackspace s Fanatical Support gives customers the technology platform, reliability, and services they need to achieve their evolving business goals. Leaders in all industries depend upon always on access to core data, processes, and systems to compete. Let s look at one such industry: In financial services, companies ranging from investment banks running bone-crunching statistical analyses, to credit card providers processing streams of transactions, to mortgage brokers making instant decisions about customer credit-worthiness, all depend on application access and reliability. As such, these companies typically invest heavily in ensuring high availability and business continuity. The future of managed server hosting isn t just about providing high availability: It s about helping companies deliver mission-critical and compliant applications and mine big data for game-changing insights. Microsoft and Rackspace help customers realize this important vision. In an industry survey, 73% of IT experts at financial services companies said they use private clouds to host some of their mission-critical applications for their enterprise. 6 When server access fails, 84% of their companies instantly replicate to a disaster recovery site. 7 These IT professionals, who operate large server networks, prefer-high availability clusters to virtualization and restoration from a backup as their strategy for ensuring continued service. 8 Among survey respondents, a third managed 101 to 500 servers and nearly half were responsible for more than 500 servers. 9 Cloud Cover: Leveraging Managed Server Hosting and Hybrid Clouds Page 5

7 With big data, the strain on corporate databases and server networks will only increase. Although companies are focused on today, they also have an eye on tomorrow. Big data issues are looming. Companies already struggle to master the vast treasure troves of unstructured data that resides in enterprise databases, devices, and online. And the big data challenge is only going to grow. By 2017, global IP traffic will have an annual run rate of 1.4 zettabyes per year as billions more users come online, consumers gobble up data-intensive video, use a wider range of Internet-enabled devices and wearables, and machines connect and communicate with each other. With an average of five Internet-enabled devices apiece, the average consumer will both generate and consume data in ways forecasters can only dream about % of database administrators are kept awake at night by production database performance. 11 Cloud Cover: Leveraging Managed Server Hosting and Hybrid Clouds Page 6

8 Choosing the right server management strategy isn t just about business continuity: It s about growth. Companies today aren t settling for the status quo: High availability, business continuity, and disaster recovery are just the starting point. They re also examining their server management strategies to position for big data analytics and enterprise growth. Here s why many are leaving colocation behind for managed server hosting. TECHNICAL EXPERTISE: Server management isn t just about buying, installing, and monitoring boxes; it s about enabling business growth and solving critical processes. Among clients questions are how to: Structure server networks to enable high-speed business processes. Accommodate unexpected volume spikes with turn-on, turn-off access. Conduct business as usual in the event of a complex system failure. Scale new businesses and services quickly and easily. Master big data insights for opportunities to reinvent their products, services, and industries. With colocation services, clients often remain mired in maintenance and troubleshooting. Managed server hosting enables them to focus on enabling business operations and analyzing what s next. CUSTOMIZATION: With colocated server operations, companies typically choose a server model that meets their current needs, but it may not scale effectively when the game changes. With managed server hosting, additional capacity and services are instantly available. ALWAYS ON SERVICE GUARANTEES: Forget the five or seven nines, many companies are demanding 100% uptime guarantees. This can be challenging when IT professionals are managing corporate servers online from afar. With managed server hosting, companies have access to availability groups that provide continuous access to their data in the cloud. GEOLOAD BALANCING: Load balancing distributes workloads across centers in nearby geographies to maximize throughput. Companies leverage managed server hosting to gain responsiveness, while avoiding overload, something that s not possible without higher capital investment at colocation sites. NO-FAIL FAILOVER: Failover clustering, multisite clustering, and cross-data-center failover mean companies are always in business even when sites, clusters, and entire data centers go down. They protect vital databases, while ensuring continued access to applications and data. With colocation, a systemic failure means hours offline. Cloud Cover: Leveraging Managed Server Hosting and Hybrid Clouds Page 7

9 IT BUDGET OPTIMIZATION: Purchasing boxes can be expensive: Why not rent them? Companies that pay for managed server hosting skip the capital investment required by colocation, while ensuring they obtain access to the latest and greatest server technologies. Equally as importantly, they pay only for the memory, storage, and backup capacity they need. BETTER STAFF LEVERAGE: With managed hosting, IT staff can focus on strategic projects instead of server maintenance, contributing to better productivity and morale. With colocation services, IT staff are tethered to hardware monitoring and the middleof-the-night pager alert. The average company will suffer 14 hours of IT downtime per year, resulting in the loss of 545 person hours due to diminished productivity. 12 SECURITY: Managed hosting providers provide both industrial-proof security and customization. Private cloud server solutions adhere to standards such as SAS, SAE, and PCMI. They also enable companies to customize data policies for their unique requirements. Colocation also enables enterprise-grade security, but puts the burden on the company to ensure it. COMPLIANCE: With managed server hosting, companies are able to build and deliver systems that comply with stringent regulations, such as ISO 27001, SSAE16, FERPA, HIPPA, FISHMA, the EU model, and more. Compliance controls and aggressive SLAs increase companies ability to adhere to their industry s standards and regulations. With colocation, both system design and controls are corporate responsibilities. COST: With subscription-based payment models, managed hosting services are a good value and use of IT spend. Colocation services require a high capital investment and can result in outmoded or underutilized assets. Cloud Cover: Leveraging Managed Server Hosting and Hybrid Clouds Page 8

10 How managed server hosting stacks up. Here s a look at how managed server hosting would prevent the root causes for unplanned outages cited by survey respondents in the Emerson Power/Ponemon Institute survey: 13 UPS battery failure 55% YES Accidental EPO/human error 48% YES UPS capacity exceeded 46% YES Cyber attack 34% YES IT equipment failure 33% YES Water incursion 32% YES Weather-related 30% YES Heat-related/CRAC failure 29% YES UPS equipment failure 27% YES PDU/circuit breaker failure 26% YES IT experts feet may be on the ground, but their heads are in the cloud. For IT executives who have been debating about moving from colocated server hosting to managed server hosting, the time is now. By making the switch today, they can embrace the right strategy dedicated servers only, dedicated servers plus private clouds, or dedicated servers and a mix of public and private clouds for their business. Increasingly, companies are leveraging the power of the cloud to run their applications and for big data initiatives. Consider this: 70% of CIOs will embrace a cloud-first strategy in % of future cloud deployments will be for databases. 15 Cloud computing provides scalability, flexibility, and simplicity in a world where industry disruption is the norm. Cloud computing provides the raw processing power and predictability data-intense industries need in order to identify opportunities, design new products, and take them to market before the competition can. Cloud computing positions companies for the rise of the third platform the new business reality where mobility, social networks, cloud computing, and data all collide. Cloud Cover: Leveraging Managed Server Hosting and Hybrid Clouds Page 9

11 Rackspace partners with Microsoft to deliver industry-leading server solutions, hosting, and Fanatical Support. The Rackspace-Microsoft alliance pushes managed server hosting further and faster than ever before. Rackspace leverages the industry-trusted Microsoft SQL Server 2012 platform to provide its customers with hosted services that deliver always on reliability, business intelligence, and modern data management tools across its nine global data centers. Together, Microsoft and Rackspace deliver a world-class hosted server platform that allows modern enterprises to innovate and grow. Analyze big data to identify emerging demand, design and test in real time, and scale to meet demand: Microsoft and Rackspace provide a state-of-the-art technology backbone that flexes and rises to meet the demands of each new business challenge. Rackspace provides: Mission-critical performance and high availability at an affordable total cost of ownership. Access to a server platform, Microsoft SQL Server 2012, that leads the industry in availability and security. Hybrid, private cloud, and dedicated server environments for clients business requirements. Customized functionality and consulting services that meet customers real needs. Access to multi-geography availability groups with geographic load balancing and failover on the same continent. Fanatical Support and deep SQL Server 2012 expertise with 24/7/365 global access to IT experts. Strong service-level agreements, industry-leading security, and access to tools via System Center and the Rackspace portal. For companies that have historically embraced colocation, it s time to forge a new path forward with managed server hosting. CONTACT RACKSPACE TODAY TO LEARN HOW. Cloud Cover: Leveraging Managed Server Hosting and Hybrid Clouds Page 10

12 About Rackspace Rackspace (NYSE: RAX) is the global leader in hybrid cloud and founder of OpenStack, the open-source operating system for the cloud. Hundreds of thousands of customers look to Rackspace to deliver the best-fit infrastructure for their IT needs, leveraging a product portfolio that allows workloads to run where they perform best whether on the public cloud, private cloud, dedicated servers, or a combination of platforms. The company s award-winning Fanatical Support helps customers successfully architect, deploy, and run their most critical applications. Headquartered in San Antonio, TX, Rackspace operates data centers on four continents. Rackspace is featured on Fortune s list of 100 Best Companies to Work For. For more information, visit Rackspace supports Windows operating systems. 1 One Hour of Downtime Costs >$100K for 95% of Enterprises, July 24, 2013, blog post. Information Technology Information Consulting. Based on research study, ITIC s Technology Trends and Deployment Survey, performed with 600 enterprises in May and June Accessed April 11, The Lowdown on Data Center Downtime; Frequency, Root Causes, and Costs, Study of Data Center Outages, Emerson Network Power/Ponemon Institute, December Downtime_Study.aspx Accessed April 11, Ibid. 4 Ibid. 5 Ibid Financial Services IT Availability and Business Continuity Benchmark Survey, Continuity Software, date unknown. wp-content/uploads/2013/04/service-availability-survey-financial-services-2013.pdf. Accessed on April 11, Note: This survey is based on data from 55 respondents. 7 Ibid. 8 Ibid. 9 Ibid. 10 By 2017, We ll Each Have 5 Internet Devices (And More Predictions From Cisco), Business Insider, May 29, Accessed April 11, Maxwell Cooter (TechWorld), Database Administrators Prepare to Move to the Cloud, CIO. December 15, Referenced Study: Database Trends Survey Report. Embarcadero Technologies. 12 The Avoidable Cost of Downtime, Phase 2, CA Technologies White Paper, May Accessed January 16, Emerson Power/Ponemon Institute, Ibid. 14 Enterprise solutions with cloud technology, Microsoft presentation, date unknown. 15 Private Cloud Quantitative Survey Results, Paradoxes, January 16, Rackspace US, Inc. All rights reserved.