veeamup_04

VeeamUP. Availability for the Modern Data Center: Business & IT Perspectives. Volume 04 Veeam Software

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Enjoy reading,Your VeeamUP editorial team

VeeamUPAvailability for the Modern Data Center: Business & IT Perspectives

Volume # 04

Increasing efficiency by investing in availabilityFinancial benefits of the always-on enterprise


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Shifting focus from costs to continuity

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Forward-thinking IT leaders are moving from short-term cost optimization to becoming innovators with a significant positive impact on bottom-line business results. They are enabling always-on operations across the enterprise and providing partners and customers with continuous access to critical data and services.

In response to the growing business demands for non-stop operations and greater availability, many organizations today are building datacenter upgrades into their IT plans and budgets. IT decision-makers who are leading their enterprise into the future act more as “Chief Innovation Officers”, investing in new datacenter technologies, which guarantee high ROIs for years to come, enable non-stop business operations and reduce costs associated with downtime.

In this issue of VeeamUP, we look at how investing in modern technology solutions is helping enterprises cut costs by delivering the highest levels of availability and uptime. We’ll also see how the market, customer demands and technology requirements are changing by examining the results of our recent Data Center Availability survey, which was conducted among 760 CIOs worldwide by an independent research agency in 2014.

Shifting focus from costs to continuity


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Business drivers for modernization

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Currently, 81% of organizations have either modernized or are planning to modernize their data centers—with a further 16% planning to do so within the next 2 years (Figure 1). But what’s driving them to invest so heavily in new technology?

Increasingly, IT leaders are drawn in by the prospect of:

• Always-on operationsWith end users demanding 24/7 access to data and applications, global customers demanding service when it suits them and the “Internet of Things” keeping everyone and everything permanently connected, the modern business never turns off. In an always-on business, there is zero tolerance for downtime.

• Empowering a mobile workforceThe 9-to-5 workweek is a thing of the past. Today’s employees and teams need constant connectivity to data, applications and each other. Giving a workforce the freedom to be productive anywhere and at any time can completely transform the way a business operates.

• Lower operational costs for ITBy minimizing downtime and giving all users constant access to data, businesses can cut time spent on day-to-day data administration tasks and system maintenance and significantly reduce operational costs.

• Innovating faster than competitorsTo get ahead of competitors in increasingly saturated markets, businesses are looking to boost agility so that they can react quickly to new opportunities. Because companies that bring their new products and services to market first, are often the most successful, companies need access to the right data and resources at the right time.

• Differentiating the customer experienceSpeaking of saturated markets, one of the only non-product-focused ways to differentiate a company today is by improving the customer experience it delivers. With empowered customers demanding service how, where and when they want it, IT is a critical component in delivering the levels of service and the kinds of experiences that they’ve come to expect.

Business drivers for modernization

Figure 1:Organizations that have modernized, are modernizing or are planning to modernize their data centers, %

TOTAL25 56 16 3

26

5716

FR22

5820

BR

26

48

21

5 DE20

6416

IT

21

6514US7 83

10SG

1760

23

CH

43

36146 UK

26

6212AU

3030

2218

NL

AVERAGE

1

Data center is already modernized

Modernizing the data center now

Planning to modernize within 2 years

No plans to modernize data center


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The investment hotspots

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Data center modernization is a hugely popular trend in organizations across the globe. But what exactly does this mean to them? And where are they investing their IT budgets? In Figure 2 below, you can see which modern technologies companies are considering among the top priorities for their data center to invest in.

The investment hotspots

• Server virtualizationServer virtualization is the biggest area of investment, with 97% of companies increasing or planning to increase their spending on it. Virtualization provides the foundation for infrastructure consolidation, rapid provisioning and mobile working – three major capabilities that enable always-on business operations.

• Storage upgradesIt’s not surprising to see heavy investments in storage upgrades. With data volumes growing every day and more and more businesses unlocking the power of analytics, one of the biggest challenges IT teams are facing is efficiently storing and enabling fast access to huge quantities of data.

• Data protection and disaster recovery With greater volumes of data, comes a greater risk of downtime and data loss, the cost of which can be extremely high. Stronger data protection and disaster recovery capabilities are needed to comply with regulations, avoid the high cost of data loss and downtime and to ensure that companies can meet tough recovery time and recovery point objectives (RTPO™).

• Cloud computingThe Cloud is gaining popularity as an IT platform – granting better business agility, the simple extension of services to remote devices and by helping cut costs with subscription-based software pricing modules. For modern businesses, the cloud provides an easy way to get the tools and IT services they need for less, while cutting capex (capital expenditure) costs.

Figure 2:Technologies organizations are investing or planning to invest in, %

97

95

94

93

88

87

83

82

79

79

78

70

20

Server virtualization

Storage upgrades

OS upgrades

Data protection and disaster recovery

Network virtualization

Virtual desktop infrastructure

Consolidating existing data centers

Private cloud

Public cloud: Infrastructure as a Service (IaaS)

Adding new data centers

Public cloud: Software as a Service (SaaS)

Public cloud: DR as a Service (DRaaS)

Other


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The cost of the availability gap

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Even with all of these above new functions and capabilities in place, investing in new IT does not guarantee increased availability. In fact, 82% of organizations have identified an “availability gap” between the demands of business users and what IT can currently provide. If a company can’t deliver close to 24/7-access to business-critical applications, it will lose revenue and the competitive advantage associated with being an always-on business.

Every instance of downtime costs money due to lost business, lost productivity, lost data and customer-service interruptions. On average, companies say it takes 1.33 hours to recover mission-critical applications after an unexpected failure, and 3.97 hours for non-mission-critical apps (Figure 3). While this doesn’t sound like a huge amount of time, those downtimes cost an average of $82,664 per hour (Figure 4), and the average organization has to handle 13 such incidents every year. These outages cost companies more than $10 million per year in downtime and data loss with, potentially, $2 million in unrecoverable data.

This is a colossal hidden cost of having insufficient IT capabilities. It’s also money that could be better spent adding value to the business, driving innovation and acquiring new technologies that deliver competitive advantages.

The cost of the availability gap

Figure 3:Length of unplanned application downtime, hours

Figure 4:Cost per hour of application downtime , US$

Mission-critical applications

Non-mission-critical applications



1,33

0,58

1,541,19

0,90

2,16

0,89

1,46

2,40

1,15

1,56

3,97

3,30

2,74

4,54

3,01

5,69 5,78

3,473,72

4,99

3,34

AVERAGE Australia Brazil France Germany Italy Netherlands Singapore Switzerland UK USA

$78 873

$105 844

$82 338

$50 611

$71 255

$75 641

$129 216

$56 953

$138 519

$68 052

$20 518

$40 920

$52 253

$26 389

$62 580

$26 069

$62 544

$26 658

$49 225

$51 944

Australia

Brazil

France

Germany

Italy

Netherlands

Singapore

Switzerland

UK

USA

AVERAGE $82 864$43 886


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Availability improvements lead to millions of dollars in savings

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So how can enterprises bridge the availability gap? The answer lies with modern availability solutions that help not only to meet the demands of the always-on business, but also help businesses to exceed expectations. Modern availability solutions deliver high-speed recovery and data-loss avoidance and help companies achieve recovery time and point objectives of less than 15 minutes for all applications to effectively improve data availability.

In Figure 5, see how much lower downtime costs are when working with 15 minute RTPOs, and how vastly different these costs are compared to the huge costs companies reported before – less than half of the industry average at $38,444 per hour.

At Veeam®, we’re constantly striving to deliver the highest levels of availability for the always-on, modern enterprise. If you’d like to learn more about how we could help you cut downtime, save money and recover your virtualized workloads quickly and reliably, visit www.veeam.com to find out more.

You may also want to read the full version of the Veeam Data Center Availability Report 2014 – please visit http://vee.am/availability2014 to download the PDF and see what challenges of the always-on business you peers meet and what actions they take to solve them.

Availability improvements lead to millions of dollars in savings

Figure 5:Maximum cost per downtime incident from meeting 15-minute RTPO, US$



$38 444

$40 723

$44 172

$36 603

$23 749

$33 633

$45 834

$64 439

$28 470

$56 459

$32 500

$21 476

$11 686

$22 675

$22 524

$12 787

$26 533

$13 776

$30 925

$19 217

$23 146

$26 187

AVERAGE

Australia

Brazil

France

Germany

Italy

Netherlands

Singapore

Switzerland

UK

USA

Main officeFrance

13/15 rue Jean Jaurès,92800 Puteaux, FrancePhone: +33 (0)1 75 61 27 45

Technical Support Phone:+33 (1) 70 61 83 74

Poland

Ul. Domaniewska 39A, Wejście A,02-672 WarszawaPhone: +48 22 208 27 25Fax: + 48 22 208 27 60

South Africa

Ground Floor Twickenham Building, The Campus57 Sloane Street Cnr MainBryanston 2021,Phone: +27 (0) 11 575 0208

Technical Support Phone:+27 (10) 500 79 63

Germany

Konrad-Zuse-Platz 881829 MünchenPhone: +49 89 207 042 800Fax: +49 89 207 042 810


Israel

P.O 2148Hamanofim St.Ackerstein Towers (A)Herzelia Pituach

United Kingdom

The Annexe, Hurst Grove,Sandford Lane, WinnershBerkshire RG10 0SQ,Phone: +44 (0) 118 934 2982


Italy

Piazzale Biancamano 8Milan, 20121Phone: +39 02 620 33 004Fax: +39 02 62 03 4000


Spain

Calle de la Ribera del Loira, 46Madrid, 28042Phone: +34 91 503 06 95


Switzerland

Linden Park, Lindenstr. 16,CH-6340 BaarPhone: +41 41 766 71 31

Main officeUSA - Atlanta

2520 Northwinds ParkwaySuite 600Alpharetta, GA 30009Phone: +1 678 353 2140

Technical Support Phones:US Toll-Free +1 (800) 774 51 24US Toll-Free +1 (800) 913 19 40United States +1 (614) 339 82 52

EMEA region

If you’d like to learn more visit us at www.veeam.com or call one of our offices

Global Headquarters

Americas regionUSA - Columbus

8800 Lyra Drive, Suite 350Columbus, Ohio 43240Phone: +1 678 353 2140Fax: +1 614 675 9494

Argentina


USA - Phoenix

303 West Elliot Road, Suite 101Tempe, AZ 85284

Brazil


Canada

3773 Côte-Vertu Boulevard, Suite 210Saint-Laurent, Québec


Mexico


The Netherlands

Evert van de Beekstraat 310,1118 CX, Schiphol Centrum,Phone: +31 (0) 20 654 18 05Fax: +31 (0) 20 654 1801


Sweden

Frösundaviks Allé 15SE-169 70, Solna,Phone: +46 (0) 8655-2624


Main officeAustralia

Office Building Address: Level 4, 22 Darley Rd,MANLY NSW 2095Postal Address: PO Box 131MANLY NSW 1655Phones: +61 2 9191 7840,+64 9 925 0456Fax: +61 2 8088 6899

Technical Support Phone:+61 (2) 6108 4305

India

#1356, 13th Flr, Platinum Tech Park ,(Near Vashi Railway Station,Sector 30)Vashi, Navi Mumbai, 400705Phone: +97 14 433 2150

Technical Support Phone:000 800 100 87 69

Singapore

152 Beach Rd #04-08 Gateway EastSingapore, 189721Phone: + 65 6653 1543

Technical Support Phone:+65 3158 22 39

Asia Pacific Region

Chile +56 (22) 570 86 84Colombia +57 (1) 381 90 78

Hong Kong +852 5808 28 70New Zealand +64 (9) 974 95 94

Belgium +32 (78) 48 02 54Denmark +45 (78) 77 54 76Norway +47 (85) 40 43 85

Technical Support Phones for other countries

Saudi Arabia 800 814 66 59UAE Toll-free 800 035 703954

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