Research Report. Abstract: Trends in Data Protection Modernization. August 2012

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1 Research Report Abstract: Trends in Data Protection Modernization By Jason Buffington, Senior Analyst, and Bill Lundell, Senior Research Analyst August 2012

2 Introduction Research Objectives Research Report: Trends in Data Protection Modernization In order to assess the current state of the data protection market, ESG recently surveyed 330 North America- and Western Europe-based senior IT professionals representing midmarket (100 to 999 employees) and enterprise-class (1,000 employees or more) organizations. All respondents were familiar with and/or personally responsible for evaluating, purchasing, or managing data protection technologies such as backup and recovery software, data replication software, and disk or tape storage systems used for secondary data storage for their organization. The survey was designed to answer the following questions: What are the primary data protection challenges that organizations are currently facing? How confident are organizations that their data protection applications and processes are adequately protecting their data? Which types of data protection technologies and processes are currently in use? How will this change going forward? How satisfied are organizations with their current data protection technologies and strategies? What types of storage media are currently used to support data protection requirements? How will this change over time? How pervasive has data deduplication usage become over the last several years? What methods do organizations use to protect virtual machines today? Does the organization maintain different approaches to protecting its virtual and physical? What is the preference for protecting physical versus virtual? What impact is the cloud having on data protection strategies today? How will this change in the near future? Survey participants represent a wide range of industries including manufacturing, financial services, communications and media, health care, retail, government, and business services. For more details, please see the Research Methodology and Respondent Demographics sections of this report.

3 Research Report: Trends in Data Protection Modernization Research Methodology To gather data for this report, ESG conducted a comprehensive online survey of IT managers from private- and public-sector organizations in North America (United States and Canada) and Western Europe (United Kingdom, France, and Germany) between January 9, 2012 and January 27, To qualify for this survey, respondents were required to be senior IT managers familiar with and/or personally responsible for evaluating, purchasing, or managing data protection technologies such as backup and recovery software, data replication software, and disk or tape storage systems used for secondary data storage for their organization. After filtering out unqualified respondents, removing duplicate responses, and screening the remaining completed responses (on a number of criteria) for data integrity, we were left with a final total sample of 330 IT managers. Please see the Respondent Demographics section of this report for more information on these respondents. Note: Totals in figures and tables throughout this report may not add up to 100% due to rounding.

4 Research Report: Trends in Data Protection Modernization Respondent Demographics The data presented in this report is based on a survey of 330 qualified respondents. The figures below detail the demographics of the respondent base, including individual respondents current job responsibility and technology area of responsibility, total number of employees, primary industry, annual revenue, total number of production, total volume of data, and server virtualization technology usage. Respondents by Role The breakdown of current roles among survey respondents is shown in Figure 1. Figure 1. Survey Respondents, by Role Which of the following best describes your current role within your organization? (Percent of respondents, N=330) Other, 2% IT Staff (e.g., Storage Administrator, Systems Administrator, Application Administrator, etc.), 32% IT Management (e.g., CIO, VP of IT, Director of IT, etc.), 67% Respondents by Primary Technology Responsibility Respondents primary area of technology responsibility is shown in Figure 2. Figure 2. Survey Respondents, by Primary Technology Responsibility Which of the following would you consider to be your primary area of technology responsibility? (Percent of respondents, N=330) IT Architecture/Planning, 5% Storage/SAN, 3% Applications/Database, General IT, 37% Servers, 11% Data Protection (e.g., backup/recovery, replication, etc.), 13% IT Operations, 21%

5 Respondents by Industry Research Report: Trends in Data Protection Modernization Respondents were asked to identify their organization s primary industry. In total, ESG received completed, qualified responses from individuals in 19 distinct vertical industries, plus an Other category. Respondents were then grouped into the broader categories shown in Figure 3. Figure 3. Survey Respondents, by Industry What is your organization s primary industry? (Percent of respondents, N=330) Other, 2 Manufacturing, 21% Retail/Wholesale, 5% Communications & Media, 5% Business services (accounting, consulting, legal), Financial (banking, securities, insurance), Government (Federal/National, State/Province/Local), Health Care, Respondents by Number of Employees The number of employees in respondents organizations is shown in Figure 4. Figure 4. Survey Respondents, by Number of Employees How many total employees does your organization have worldwide? (Percent of respondents, N=330) 20,000 or more, 15% 100 to 249, 13% 10,000 to 19,999, 6% 250 to 499, 1 5,000 to 9,999, 9% 500 to 999, 17% 2,500 to 4,999, 11% 1,000 to 2,499, 15%

6 Research Report: Trends in Data Protection Modernization Respondents by Annual Revenue Respondent organizations annual revenue is shown in Figure 5. Figure 5. Survey Respondents, by Annual Revenue 20% 1 16% 1 6% 2% 0% 9% Less than $25 million What is your organization s total annual revenue ($US)? (Percent of respondents, N=330) 11% 9% $25 million $50 million to $49 to $99 million million $100 million to $249 million $250 million to $499 million 11% 11% $500 million to $999 million $1 billion to $4.999 billion $5 billion to $9.999 billion 5% $10 billion to $ billion $20 billion or more 11% Not applicable (e.g., public sector, non-profit) Respondents by Number of Production Servers Respondent organizations number of production is shown in Figure 6. Figure 6. Survey Respondents, by Number of Production Servers Approximately how many total production (whether physical or virtual) are supported worldwide by your IT organization? (Percent of respondents, N=330) Don't know, 2% More than 5,000, 2,501 to 5,000, 1,001 to 2,500, 6% Less than 25, to 1,000, 9% 25 to 49, 19% 251 to 500, 101 to 250, 13% 50 to 100, 16%

7 Research Report: Trends in Data Protection Modernization Respondents by Total Volume of Data The approximate total volume of data stored on corporate and storage systems in respondents organizations is shown in Figure 7. Figure 7. Survey Respondents, by Total Volume of Data 1 6% 2% 5% What is your immediate organization s approximate total volume of data stored on corporate and storage systems? (Percent of respondents, N=330) 11% 13% 9% 9% 5% 5% 11% 0% Less than 1 TB 1 TB - 5 TB 6 TB - 10 TB 11 TB - 25 TB 26 TB - 50 TB 51 TB TB 101 TB TB 251 TB TB - More Don't 500 TB - 1 PB than 1 know PB Respondents by Server Virtualization Usage Respondent organizations usage of server virtualization technology is shown in Figure 8. Figure 8. Survey Respondents, by Usage of Server Virtualization Technology Is your organization currently utilizing x86/x64 server virtualization technology? (Percent of respondents, N=323) 70% 60% 62% 50% 40% 30% 20% 20% 7% 7% 0% Yes, we are using server virtualization technology We are currently evaluating and/or piloting server virtualization technology We have not yet deployed server virtualization technology but we plan to do so We have not yet deployed server virtualization technology and we have no current plans to do so Don't know

8 Research Report: Trends in Data Protection Modernization Respondents by Percentage of x86/x64 Servers Virtualized The approximate percentage of x86/x64 virtualized in respondents organizations is shown in Figure 9. Figure 9. Survey Respondents, by Percentage of x86/x64 Servers Virtualized Of all the potential physical x86/x64 in your organization that can be virtualized, approximately what percentage of these systems has actually been virtualized to date? (Percent of respondents, N=201) 1 9% 13% 13% 11% 13% 6% 5% 2% 1% 0% Less than of to 20% of 21% to 30% of 31% to 40% of 41% to 50% of 51% to 60% of 61% to 70% of 71% to 81% to 91% to Don't 80% of 90% of 100% of know Respondents by Total Number of Virtual Machines The approximate total number of virtual machines in respondents organizations is shown in Figure 10. Figure 10. Survey Respondents, by Total Number of Virtual Machines 30% 25% 26% Approximately how many total virtual machines (whether production or test/development) are currently deployed in your organization? (Percent of respondents, N=201) 20% 15% 1 17% 15% 9% 5% 2% 2% 3% 1% 0% Less than to to to to to 1,000 1,001 to 2,500 2,501 to 5,000 More than 5,000 Don't know

9 Research Report: Trends in Data Protection Modernization 2 Contents List of Figures... 3 List of Tables... 3 Executive Summary... 5 Report Conclusions... 5 Introduction... 7 Research Objectives... 7 Research Findings... 8 Large and Growing Data Volumes Impact Data Protection Strategies... 8 On-site Disk and Tape Still Dominate Backup Processes Backup Application Trends Advanced Data Protection Technologies are Starting to Replace Traditional Backup Virtual System Protection Data Deduplication Technology Adoption Data Protection Forecast: Cloud is Moving in Conclusion Research Implications for Technology Vendors Research Implications for IT Professionals Research Methodology Respondent Demographics Respondents by Role Respondents by Primary Technology Responsibility Respondents by Industry Respondents by Number of Employees Respondents by Annual Revenue Respondents by Number of Production Servers Respondents by Total Volume of Data Respondents by Server Virtualization Usage Respondents by Percentage of x86/x64 Servers Virtualized Respondents by Total Number of Virtual Machines All trademark names are property of their respective companies. Information contained in this publication has been obtained by sources The Enterprise Strategy Group (ESG) considers to be reliable but is not warranted by ESG. This publication may contain opinions of ESG, which are subject to change from time to time. This publication is copyrighted by The Enterprise Strategy Group, Inc. Any reproduction or redistribution of this publication, in whole or in part, whether in hard-copy format, electronically, or otherwise to persons not authorized to receive it, without the express consent of The Enterprise Strategy Group, Inc., is in violation of U.S. copyright law and will be subject to an action for civil damages and, if applicable, criminal prosecution. Should you have any questions, please contact ESG Client Relations at

10 Research Report: Trends in Data Protection Modernization List of Figures Figure 1. Total Volume of Data Stored on Corporate Servers and Storage Systems... 8 Figure 2. Annual Data Growth Rates... 9 Figure 3. Annual Data Growth Rates, by Total Volume of Data... 9 Figure 4. Current Data Protection Process and Technology Challenges Figure 5. Overall Success Rates for Backup and Recovery Jobs Figure 6. Current Primary Data Backup Processes Used Figure 7. Percentage Allocation of On-site Backup Data across Various Disk-based Storage Targets Figure 8. Number of Unique Backup Applications Figure 9. Deployment Model for On-premises Backup Solution, Current vs. Preferred Figure 10. Length of Primary Backup Application Deployment Figure 11. Commitment to Current Backup Process Figure 12. Commitment to Current Backup Process, 2010 vs Figure 13. Reasons Organizations Wouldn t Replace Current Backup Solution/Vendor Figure 14. Reasons Organizations Would Replace Current Backup Solution/Vendor Figure 15. Most Important Considerations for Selecting a Replacement Backup Vendor/Solution Figure 16. Usage of Data Protection Technologies to Back Up Data on Physical Servers Figure 17. Plans to Replace File/Application Level Backup with a Snapshot or Replication Solution Figure 18. Impact of Snapshot Technology on Data Protection Processes Figure 19. Reasons Why Organizations Have No Plans to Use Snapshot Technology Figure 20. Impact of Replication on Data Protection Processes Figure 21. Expected Implementation of Replication Technology Figure 22. Reasons Why Organizations Have No Plans to Use Replication Technology Figure 23. Data Protection for Virtual and Physical Servers, Current Approach versus Preferred Approach Figure 24. Virtual Machine Backup Methods Figure 25. Level of Satisfaction with Virtual Machine Backup Figure 26. Level of Satisfaction with Primary Method of Backing Up Virtual Machines Figure 27. Usage of Data Deduplication Solutions Figure 28. Usage of Data Deduplication Solutions, by Total Amount of Data Figure 29. Data Deduplication Implementation Methods, Current Users vs. Planned Adopters Figure 30. Data Deduplication Implementation Methods among Current Users, by Total Amount of Data Figure 31. Utilization of Third-party Cloud Services for Data Protection Figure 32. Allocation of Backup Data Across Various Storage Media Types, Now vs. 24 Months from Now Figure 33. Factors Driving Decision to Use Cloud-based Backup Service, Current vs. Potential Users Figure 34. Reasons Why Organizations Have No Plans to Utilize Cloud Backup Services Figure 35. Survey Respondents, by Role Figure 36. Survey Respondents, by Primary Technology Responsibility Figure 37. Survey Respondents, by Industry Figure 38. Survey Respondents, by Number of Employees Figure 39. Survey Respondents, by Annual Revenue Figure 40. Survey Respondents, by Number of Production Servers Figure 41. Survey Respondents, by Total Volume of Data Figure 42. Survey Respondents, by Usage of Server Virtualization Technology Figure 43. Survey Respondents, by Percentage of x86/x64 Servers Virtualized Figure 44. Survey Respondents, by Total Number of Virtual Machines List of Tables Table 1. Overall Success Rates for Backup Jobs, by Production Servers and Total Amount of Data Table 2. Percentage Allocation of On-site Backup Data across Various Disk-based Storage Targets, by Total Amount of Data... 13

11 Research Report: Trends in Data Protection Modernization 4 Table 3. Number of Unique Backup Applications, by Production Servers and Total Amount of Data Table 4. Preferred Data Protection Approach for Virtual and Physical Servers, by Number of Virtual Machines... 25

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