8x8 Webinar: Prepare Now to Survive a Disaster

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8x8 Webinar: Prepare Now to Survive a Disaster Later January 23, 2013 2009 NASDAQ-LISTED: EGHT The materias presented in the webinar provided by 8x8, Inc. are intended to provide genera information on a particuar subject or subjects and are not an exhaustive treatment of such subject(s). 8x8, Inc. makes no representations or warranties about the accuracy or suitabiity of any information in the webinars and reated materias; a such content is provided on an as is basis. The information contained in these webinars and reated materias has been prepared, compied, or provided by 8x8, Inc. as a service to subscribers and is not intended to constitute ega advice or the rendering of ega, consuting, or other professiona services of any kind. Users of these materias shoud not in any manner rey upon or construe the information or resource materias in these materias as ega, or other professiona advice and shoud not act or fai to act based upon the information in these materias without seeking the services of a competent ega or other professiona.

Agenda Importance of Preparing What does that mean for SMBs? The Basics Stages of creating a business continuity pan Getting Started Impact & Risk Assessment Risk Mitigation Deveoping a Strategy & Pan Testing, Review, & Pan Maintenance 8x8 Communication Soutions Resources 2

Presenter Bios Michae McApen 8x8 Executive Director, Security and Compiance Erik Archer Smith 8x8 Product Programs and Training Manager Angea York 8x8 Director, Customer Marketing and Loyaty Programs 3

What woud you do? My company was without power for 10 days recenty due to Hurricane Sandy. As a matter of fact, it was not even physicay possibe to trave to our office due to a number of disastrous conditions such as downed trees, wires, fooding, etc. However, our service territory is a of New Engand, the entire Mid-Atantic Region, and MD & WV, so most of our customers were not affected by the storm 4

Importance of Preparing: Disasters & Threats Widespread Natura Disasters Earthquakes: 1989 San Francisco & 2011 Japan earthquake and tsunami Storms: 1992 Hurricane Andrew, 2005 Hurricane Katrina & 2011 Tropica Storm Irene Foods: 1997 Midwest foods Terrorist Attacks 1993 & 2001 Word Trade Center, NY & 1995 Okahoma City Infrastructure Disruptions Power Outages: 1999 East coast brownouts & 2003 Midwest power outage Transportation arteries Labor Strikes Everyday Disasters, Loca/Isoated Business Disruptions Fire Water Eectrica Foods (Natura and man made) Robbery & Burgary Hardware/Software Faiure Human Error Vira Security Treats Third-party Disruptions/Outages Vandaism 5

Importance of Preparing Up to 40% of businesses affected by a natura or human-caused disaster never reopen SMB Statistics 50% do not have a pan 65% ive in regions susceptibe to natura disasters Typica SMB experiences 6 outages/ downtime a year Top reasons: Cyber attacks, power outages, and natura disasters Faiure to Prepare: Outages are expensive: $12,500 per day 40% of SMB customers have had an SMB vendor temporariy shut down due to a disaster 54% of customers have switched SMB vendors due to unreiabe computing system 6 Source: FEMA Ready.gov, http://www.ready.gov/program-management; Symantec 2011 SMB Disaster Preparedness Survey, http://www.sideshare.net/symantec/2011-smbdisaster-preparedness-goba-survey

Importance of Preparing: Having a Pan Goa: To assist the organization/business to continue functioning even though norma operations are disrupted Incudes steps to take before, during, after a disruption 7

Basic Stages of Creating a Pan Getting Started Pan Initiation Assessment Deveoping a Pan Strategy Deveopment Pan Deveopment Documentation Testing & Maintenance Pan Testing Pan Review and Maintenance Recovery 8

Getting Started & Assessment 9

Getting Started Research Free resources avaiabe: FEMA Sma Business Administration American Red Cross Loca and state agencies Disaster Recovery Journa Identify who wi be responsibe Get executive commitment 10

Assessment Impact Assessment Risk Assessment Taking Inventory Risk Mitigation & Management First, the sma business owner needs to determine what the risks of the business are. This can be performed by identifying the natura hazards that occur in the businesses geographic area Aso, identify the risks that coud occur at the business site or faciity, such as fires and power outages. Josh Stevens, Sma Business Preparedness, www.drj.com 11 Source: http://www.drj.com/artices/onine-excusive/sma-business-preparedness.htm

Impact Assessment: Envision Likey Scenarios Make a ist of the kinds of interruptions that might impact your business Natura Disasters: Foods, storms, tornadoes, fire, hurricanes and earthquakes Everyday disasters: Power outages, broken water pipe, vendor disruptions, etc. Cyber attacks Sickness, fat tire, sudden empoyee departures, etc. Zombie attacks 12

Impact Assessment: Critica Business Functions What is most important to your business? Categorize data and physica assets Identify essentia functions Identify critica process dependencies Deveop business function outage scenarios Deveop an inventory of your crucia business functions: Saes, data storage and management, voice and data communications, emai, critica equipment, etc. Worksheet from www.sba.gov 13

Impact Assessment: Take Inventory Exampes: List mission-critica personne and their job functions List equipment needs of critica personne Document current computer data backup frequency and methods Identify vita hard copy documents vita that cannot be re-created eectronicay 14

Risk Assessment Once the risks that threaten a business are understood the risk management process can begin. Josh Stevens, Sma Business Preparedness, www.drj.com Quaify and quantify impact of potentia threats What is the cost of faiure? Direct osses and additiona operating expenses Vioation of contracts, reguatory requirements Loss of competitive advantage, pubic confidence Estimate the impact if downtime is an hour, a day, or more than a week Estabish system priorities Exampe: Which has a higher impact, coecting bis customers owe, or extending credit to existing and new customers? 15

Risk Mitigation & Management 1. Risk Avoidance Practices 2. Risk Reduction Practices 3. Risk Transfer Practices 4. Risk Acceptance Depending on the cost of the business, you can determine how much money you are wiing to spend on managing the risks. Some risks may cause such itte damage that it woud be easier and cheaper for the business to recover from the risk once it occurs, whie other risks may be so costy that insurance might be cost efficient for the business. Josh Stevens, Sma Business Preparedness, www.drj.com 16

Recap: Getting Started & Assessment 1. What do you need to do to keep your business running Envision ikey scenarios Take an inventory of critica business functions 2. What are the things you need to protect? Take an inventory of critica resources Quantify and prioritize 3. Quaify and quantify risk 17

Deveoping a Strategy & Pan 18

Strategy Deveopment Pan Components Empoyee safety and preparedness Business operations Staffing and workpace contingencies Communications Recovery Pan Documentation Testing, Review and Maintenance 19

Strategy Deveopment Use your assessment to begin formuating a strategy. Experts suggest a good start is answering the foowing: How wi you ensure physica safety? How wi you continue operating? How wi you access vita equipment? How wi you access critica business and customer records? Where wi you work? Who can keep working? Who wi be avaiabe to work? Who is needed? How wi you communicate? How wi your customers reach you? How wi you reach them? How wi you recover? Who is authorized to hande ceanup? What if that person is injured or can t get to the site? Who can act as backup? How do you know your pan wi work? 20

Pan Deveopment: Empoyee Safety How wi you ensure physica safety? Where to start: Have a buiding evacuation pan and practice Have an adequate emergency medica kit Have emergency suppies Radio and penty of batteries Propery prepare and educate your empoyees 21

Pan Deveopment: Empoyee Preparation How wi you ensure physica safety? Make sure your empoyees know: Company emergency pan Where they shoud reocate to work How to use and access reiabe methods of communication User IDs and passwords for critica company systems How to perform mutipe job functions to hep ensure adequate coverage How they wi be notified to return to work 22 Source: http://www.capitaone.com/media/doc/sma-business-bank/disaster-panning-checkist-2011.pdf

Pan Deveopment: Business Operations How wi you continue operating? How wi you access vita equipment? How wi you access critica business and customer records? Where to start: Pan for emergency response and assessment, emergency operations, restoration Deveop an IT and equipment strategy Contingency strategies, backup and offsite storage, recovery site strategies, etc. Identify aternate vendors and third-party providers Pan for deaing with potentia ooting and vandaism Research disaster assistance resources before you need it 23

Pan Deveopment: Staffing & Work Pace Contingencies Who is needed? Where wi you work? Who can keep working? Who wi be avaiabe to work? Where to start: Identify critica personne and back-ups Insure they have the toos needed to operate in an emergency Determine who can work from home or another remote site Give them the toos and support they need to do it Have geographicay diverse aternatives Determine a site reocation for contingency 24

Pan Deveopment: Communications How wi you communicate? How wi your customers reach you? How wi you reach them? Where to Start: Deveop a communication pan to empoyees Contact ists and phone trees Designate a phone number empoyees shoud ca for information Deveop a communication pan for customers Prepan where to redirect cas Make sure the appropriate peope have access and authority/permissions to make changes to your phone system Create a crisis management media kit Be prepared for any media or press coverage 25

Pan Deveopment: Recovery How wi you recover? Who is authorized to hande ceanup? What if that person is injured or can t get to the site? Who can act as backup? Where to Start: Create a chronoogica task recovery ist Assign each recovery step to specific peope Specify emergency response procedures Specify resources needed for recovery Provide ogistic detais of the actua recovery Activation decision process Savage, cean-up, repair 26

Pan Documentation Pan document shoud be comprehensive and written down Pans prepared by those who wi carry them out Have cear instructions with pictures, diagrams, iustrations, etc. Make sure pans are accessibe to those who need it 27

Pan Testing and Review & Maintenance You shoud conduct testing and exercises to evauate the effectiveness of your program Make sure empoyees know what to do and find any missing gaps in the pan Create a systematic schedue for updating the pan An outdated pan is worthess! Measure and evauate 28

Recap: Deveoping A Strategy & Pan 1. Remember protecting human ife is priority #1 2. Have a comprehensive, strategic written pan 3. Document, practice and maintain your pan 29

8x8 Soutions 30

What they Did My company was without power for 10 days recenty due to Hurricane Sandy. As a matter of fact, it was not even physicay possibe to trave to our office due to a number of disastrous conditions such as downed trees, wires, fooding, etc. However, our service territory is a of New Engand, the entire Mid-Atantic Region, and MD & WV, so most of our customers were not affected by the storm If not for 8x8, our phone system woud have been down for the duration of the power outage and our customers woud not have been abe to reach us for technica support.it aowed us to work remotey and be just about fuy operationa. Thanks 8x8! Thomas Farnan, Cimquest 31

8x8 Soutions 8x8 phone service is fuy geographicay redundant. Our VoIP network is supported by redundant data centers on the East and West Coasts Both data centers store a our Virtua Office customer information in rea time. If catastrophe strikes one, the other is ready to take over Each 8x8 data center has redundant servers, routers, switches and power suppies. Our network infrastructure has mutipe independent inks to major Internet service providers and the pubic switched teephone network. When one connection fais, another can immediatey take over the fu oad 32

8x8 Soutions If you can't get to the office during a disaster, 8x8's fexibe, coudbased soutions can sti hep you keep your business running. Virtua Office Mobie App. Our mobie app for iphone or Android phone ets you make and receive cas, check messages, and manage ca forwarding. The app works over your ceuar or WiFi connection. Virtua Meetings. With 8x8 Virtua Office Pro, meet with coworkers and customers using our Virtua Meeting web conferencing feature. Log in anywhere. You can use any computer with Internet access to og in to your 8x8 extension and update ca forwarding, take cas, and check messages. Manage your account remotey. With 8x8's web-based Account Manager make rea-time updates to your phone system. For exampe, you can record new greetings and prompts to et customers know office hours have changed, or forward extensions to ce phones so your empoyees can work from home or another remote ocation. 33

Summary & Resources 34

Summary 1. Being prepared can be the difference between surviving and not 2. Impact and Risk Assessment What do you need to do to keep your business running What are the things you need to protect Quaify and quantify risk and manage that risk 3. Deveop a Pan Protecting human ife is priority #1 Have a comprehensive, strategic written pan Document, practice and maintain your pan 4. 8x8 is a key component to being prepared 35

Resources FEMA- www.ready.gov SBA- www.sba.gov American Red Cross- http://www.readyrating.org and http://www.redcross.org/ Loca and state agencies and other community organizations Fire and Poice Departments Sma Business Bureaus State government websites Loca universities and coeges Libraries Disaster Recovery Journa- www.drj.com www.8x8.com/howto.aspx 36

www.8x8.com 37