Business Continuity & Disaster Recovery Trends and Best Practices

1. Business Continuity & Disaster Recovery Trends and Best Practices May 2004 Joel Daly COO / Co-Founder Inflow

2. Inflow Overview Application Hosting Services Customers Host Their Production Site at an Inflow IDC BC/DR Services Customers Host Their Secondary Site at an Inflow IDC

3. What is DR & Where Does it Come From • Disaster Recovery: is the process of rebuilding your operation or infrastructure after a disaster has passed. • Source: SANS Institute Catastrophic Causes • Widespread and well documented destruction • > 90% + of BUSINESS CONTINUITY budgets • < 1% chance of occurring • Customers understand and may have • compassion in these situations

4. Business Continuity has become the Standard… But What is BC?? • Business Continuity: refers to the activities required to keep your organization running during a period of displacement or interruption of normal operation. • Source: SANS Institute Clinical Causes • Malicious events, Viruses, Human Error • 92% of FBI/CSI survey respondents reported attacks • Resulting in > $ 3M in quantifiable loses • Infrastructure Failure • > 50% of outages are power or plumbing related • Perception is reality • Outage = Failure to anticipate

5. Understanding Your Risk Tolerance

6. Evolution of BC/DR Sept. 11 Forever Changed Business Continuity Management Disaster Recovery Y2K and BPR Aftermath of Sept. 11 RTO = Three Days + Contingency Planning + Crisis Management Scenarios Limited RTO = < 24 hours + New Scenarios Business Recovery Internet and BPR Enterprise for critical work RTO/RPO ~ 0 Risk Management processes + New Scenarios 1990 1995 1999 2000 2002 2004

7. Not All Applications are Created Equally Classifying Business Process Service Levels in Project Life Cycle Class Business Process Services Service Levels Class 1 Customer - /Partner - Facing 24x7 scheduled n n (RTE) Functions Critical to 99.9% availability (<45 min./mo.) n n Revenue Production RTO = two hrs.; RPO = zero hrs. n Class 2 Less - Critical Revenue - 24x6 - 3/4 scheduled n n Producing Functions 99.5% availability (<3.5 hrs./mo.) n Supply Chain n RTO = 8 - 24 hrs.; RPO = four hrs. n Class 3 Enterprise Back - Office 18x7 scheduled n n Functions 99% availability (<5.5 hrs./mo.) n RTO = three days; RPO = one day n Class 4 Departmental Functions 24x6 - 1/2 scheduled n n 98% availability (<13.5 hrs./mo.) n RTO = five days; RPO = one day n

8. DR Strategies Based on Criticality of Business Processes • Two sites within ~ 50 km • Hot standby (dedicated); Class 1 insourced or outsourced (RTO & RPO ~ 0) facilities • Mirrored data Class 2 • Shadowed data (RTO = 8 – 24 hours • In - house or outsourced RPO = 4 hours) • Standard recovery from tape Class 3 (RTO = 72 hours • Outsourced usually more cost RPO = 24 hours) effective (hot site or mobile) • Quick ship program most - Class 4 cost - effective (RTO = 4 – 5 days RPO = 24 hours) • Standard recovery from tape

9. Technologies Used to Meet RTO/RPOs Assumes mirroring or shadowing plus Express Recovery and HA a complete application environment Solutions Load - Balanced Database and/or file and/or object replication Mirroring Log/journal transfer (continuous or periodic) net $$$+ Shadowing host $$$+ Database and/or file Cost disk $$$$+ and/or object backup Electronic app. $+ Elec. Journaling Standard Vaulting net $$$+ net $ - $$+ Recovery net $ host $$+ host $$+ host $ net $ disk $$$$+ disk $$$$+ disk $ tape $ tape $ 12 hours minutes 72 48 24 hours hours hours Disaster Recovery Time

10. Inflow’s Lines of Business Are MergingApps Hosting & BC/DR • High Availability • Bet the Business Application • True Cost of Downtime • Express Recovery • RTO < 60 Minutes • Customer Facing or Business Operations Application • On-Demand • Event/Seasonal Driven • Testing, News, Sports, Holidays, Advertising Campaigns…etc • Pay monthly retainer + usage fees

11. High Availability Scenario – Airline Customer

12. Express Recovery Scenario – Insurance Company

13. Benefits On-Demand Strategies are Event Driven Disasters = Major Events Optimization of Resources Test, Surge, Recovery Automation Reduces RTO/RPO Challenges Virtualization Technologies in Production Environments Billing and Metering On Demand or Utility Computing Why Everyone is Talking

14. Business Continuance is a way of conducting business Understand complete impact of all interruptions Catastrophic & Clinical Define your Business Continuance Policy Conduct a Business Impact Analysis Document Everything, Test Often & Change Management Design HA or Express Recovery into “Bet the Business Apps” Take-Away