Evolving Risks Of Data Storage. Neville G.H. Green Group Underwriting Manager HSB Engineering Insurance Ltd

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1 Evolving Risks Of Data Storage Neville G.H. Green Group Underwriting Manager HSB Engineering Insurance Ltd

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7 Data Loss Data Damage Data Corruption Data Theft Data Compromise

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9 The Data Explosion 1996 Google handles 100TB of data in 1 YEAR 2010 Google handles 160TB in 1 SECOND

10 Major Technology Changes Hard Drive Storage Density Increasing exponetially Price inversely proportional 1989 $36 / MB = $36,864 / GB 1994 $1 / MB = $1,024 / GB 2000 $0.02 / MB = $20 / GB 2010 $ / MB = $0.07 / GB

11 Storage Challenges Data safety and integrity Higher storage density / same form factor 1989 typical hard drive 40MB 2010 typical hard drive 1TB 26,000 x the data Same Physical Area Minor physical surface damage now affects 26,000 x more data

12 The Drive To Store More Data

13 Technical Factors File sizes increasing Same data in a 1995 Word Doc now takes around 10x the storage space Migration from Mail to Migration from paper to e-paper Software less compact

14 Business Factors Business Drivers Risk analysis Marketing Customer service Ease of access (Building) Space saving BCP Compliance / Regulatory

15 Brief History Of Storage

16 Pictures Coutesy of Poil Late 40 s to Early 50 s

17 Pictures Coutesy of Poil Late 50 s to Early 60 s

18 Mid 60 s to Mid 70 s

19 Late 70 s to Mid 80 s Picture Coutesy of Jkbw Picture Coutesy of Appaloosa

20 Mid 80 s to Current Day

21 Evolution Of Portable Storage 128 Kb 1.2 Mb 1.4 Mb

22 Pictures Coutesy of Payam 81

23 Picture Courtesy of Stefan-Xp/Bild-GFDL Vorlage Fremd

24 Picture Courtesy of 健 ちゃん

25 Statistics

26 60% of companies sustaining a major data loss will shut within 6 months

27 Companies unable to resume operations within ten days of a data disaster are not likely to survive (Strategic Research Institute)

28 Every week 140,000 hard drives crash in the United States. (Mozy Online Backup)

29 Simple drive recovery can cost upwards of $7,500 and success is not guaranteed

30 34% of companies FAIL to test tape backups, of those that DO, 77% have found tape back-up failures

31 Physical Risks

32 Changing Risk Profile Shift in risk From To Fire Nat Cat The push of a button Breakdown Loss of a laptop or flash drive

33 Head Crash?

34 Picture Courtesy of Alchemist-hp Head Crash!

35 Major Technology Changes Solid State displacing Electro Mechanical SSD Drives in laptops now common Improving - not yet mature technology Fast BUT Limited lifespan Increased security risk / reliability issues

36 SSD / Flash Issues Advantages Fast Quiet No fragmentation Issues Physically robust Flexible form factor Disadvantages Limited life 10 to 100,000 cycles per cell Mitigated by Wear Levelling Security Issues Caused by Wear Levelling

37 Portable Risks Courtesy of Secumen

38 Cyber / E-Risks

39 Virus Denial of Service Hacking Phishing Pharming Snarfing Spoofing DNS Cache Poisoning SQL Injection Drive By Buffer Overflow Evil Twin Cross Site Scripting

40 Minimising Data Loss Risk

41 Key Strategies Defence Backup Data Recovery

42 Key Strategies Defence Hardware Based Mirroring RAID Firewalls Software Based Virus Defence / Internet Security Corporate Lockdown Encryption Physical Protection Security & Intrusion Prevention

43 Disk Mirroring Two (or more) identical disks All writes and deletions copied byte for byte

44 RAID Several (usually identical) drives Data striped across drives Sometimes one Hot spare Data striped by a controller / software

45 Raid Array Disk 1 Disk 2 Data Server D1 D2 D2 D1 D2 D3 D3 D4 D3 D4 Raid Controller D1 D3 D4 Hot Spare Contains file allocation tables for disks 1-3 Disk 3 Disk 4

46 RAID Advantages High protection level Limits downtime Speed of data access Modest cost of individual drives Disadvantages Does not eliminate single point of failure Complexity Many proprietary solutions Disparate benchmark standards

47 Backup Strategies

48 Key Strategies Backup Hardware Based Online

49 Disk To Tape Advantages Simple Robust technology Reasonably cost effective Disadvantages Lengthy testing and recovery times Tape storage Pictures courtesy of Stetpro (B) & Darkone (T)

50 Disk To Disk Advantages Simple Robust technology Cost effective Swift recovery Disadvantages Second location needed Pictures courtesy of Stetpro (B) & Darkone (T)

51 Disk To Disk To Tape Advantages High protection level Disadvantages Second location needed Pictures courtesy of Stetpro (B) & Darkone (T)

52 Online Second Layer Solution Advantages Automated No second location High quality datacentres High protection level Multiple backups Some Insured Solutions Swift data recovery Disadvantages Limited by connection speed Corporate Network First level backup Datacentre Network Internet

53 Key Strategies Data Recovery Online restore Media based restore Disk recovery

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55 Insurer Responses In Europe Data written on monoline Computer Policies and as sublimit to MB Limits vary from $000 s to $000,000 s Warranties / Conditions Backup offsite no less than every 48h Firewalls Anti virus software requirement

56 Summary Moore s / Kryder s Laws Storage density will double every year Business Requirements If it is possible to store more more will be stored Dependency shift to critical more prevalent Effects Exposure in data sublimits is compressed Pressure to increase sublimits Frequency and severity WILL rise where insureds do not take adequate precautions if not mandated.

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