Data Protection
Data Protection
by Jason Buffington
Author of Data Protection
for Virtual Data Centers
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Data Protection by the Numbers For Dummies®,
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Table of Contents
INTRODUCTION................................................................................................ 1
The Rosetta Stone of Data Protection................................................ 1
About This Book.................................................................................... 2
How This Book is Organized................................................................ 2
Chapter 1: Technical Metrics: RPO, RTO, and SLA....................... 2
Chapter 2: Operational Metrics: RA and BIA................................ 3
Chapter 3: Calculating the Cost of Downtime.............................. 3
Chapter 4: Financial Metrics: TCO and ROI................................... 3
Chapter 5: Ten Keys to Better C onversations.............................. 3
Icons Used in This Book........................................................................ 4
Where to Go from Here........................................................................ 4
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CHAPTER 4: Financial Metrics: TCO and ROI....................................... 31
Total Cost of Ownership..................................................................... 31
Return on Investment......................................................................... 34
Calculating ROI............................................................................... 34
Determining which ROI method is the most accurate.............. 36
Examining the credibility challenge of ROI................................. 37
You Should Hope They Argue with Your Formulas......................... 38
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Introduction
N umbers make everything equal.
Introduction 1
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the organization’s preparedness for crises of all kinds (with
and without IT considerations).
»» Financial professionals are barely concerned with concepts
such as backups and IT policies, but they do care about
investments and returns. That means they tend to see
everything through the lenses of total cost of ownership
(TCO) and return on investment (ROI).
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both the real metrics of data protection and the fodder for data
protection marketing. We explain how to think of this concept in
practical terms, and then we focus on establishing reasonable and
attainable service level agreements (SLAs).
Chapter 2: Operational
Metrics: RA and BIA
Chapter 2 covers the realm of business continuity and disaster
recovery experts who serve operational groups, business units,
and executive leadership. In this chapter, we cover BIAs, RAs, and
“the art of worrying.”
Introduction 3
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operational, and financial goals is not trivial. Set those challenges
against the jaded “burden” of backup and it can be daunting.
Chapter 5 highlights ten facets of this process and the building
of bridges to help you make these conversations happen, if for no
other reason than to help you get the better data protection that
you probably already know you want.
If you see the Tip icon, pay attention: You’re about to find out how
to save some aggravation and time.
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IN THIS CHAPTER
»» Recovery point objective (RPO)
Chapter 1
Technical Metrics:
RPO, RTO, and SLA
W
hen comparing the wide range of data protection tech-
nologies and methodologies, the two technical metrics
that provide a standard for comparison are the recovery
point objective (RPO) and the recovery time objective (RTO).
For an introduction to these terms, consider a typical nightly
backup scenario where a full backup is made every weekend and
an incremental backup is made every evening after users leave
work.
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wrong during the backup or the recovery — the most you can lose
due to an IT outage is one day’s worth of business data. If your
data is made up solely of documents from Word or Excel, you have
lost only those documents that were updated that day. If your
data consists of transactions such as financial records, the con-
sequences could be worse. Imagine that you work in a financial
institution and, in one day, most (if not all) of your accounts have
some kind of activity, including not only deposits and withdrawals
but also changes in value. If you lose a day’s worth of those trans-
actions, the entire data set is no longer valid.
The key point here is that you must assess the potential for data
loss in two ways:
If you average these two extremes, you can presume that the server
will always fail at noon — halfway into the business day. Statisti-
cally speaking, companies that rely on nightly backup alone will
lose, on average, half of one day’s worth of data.
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A “SERVER” BY ANY OTHER NAME
For the purposes of this book, server refers to a physical, virtual, or
cloud-instantiated platform that is hosting data in order to deliver
IT services. According to industry analysts, 52 percent of IT outages
within a data center are caused by hardware. In earlier days, this would
equate to a single (physical) server being impacted, but today the vast
majority of physical infrastructure is in support of virtualization, where
20 virtual machines (VMs) might reside within a single physical host,
thereby compounding the impact of downtime exponentially.
To learn the whole story when looking at RPO, it’s the O that is
most important. RPO is an objective (or goal). It specifies how
much data you’re willing to lose. In a nightly backup, the statisti-
cal probability is that you will lose a half-day of data. But if you
establish your RPO at half-day and then your server fails in the
afternoon, you have actually lost more data than you planned —
and you fall short of your goal or objective. In fact, you’ll likely
miss that goal close to half the time. So, most would set an RPO
as one-day, meaning that it’s an acceptable business loss to lose
an entire day of data, because of the recognition that backups are
occurring only nightly.
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For the purposes of this book, the three most common data pro-
tection mechanisms are defined as
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the production server has 6TB of data, time to restore the data is
roughly 3 hours — or, more specifically, 3 hours from when the
restore function begins.
If your largest server holds 10TB of data and your protection stor-
age can restore 2TB per hour, and if you’re confident that you
could immediately locate the right tapes and restoration could
begin soon after, then you might specify an RTO of 5 hours — or
6, to be cautious. But you’ll also lose time between the moment
the outage occurs and the moment you invoke the restore process
(with or without diagnostics time on the original server). As such,
you will likely round up and specify an RTO of one-day.
Source: ESG Real World SLAs and Availability Methods, December 2017
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Putting RPO and RTO Together
Let me now combine the examples I’ve used in this chapter.
But just measuring RPO and RTO isn’t enough. You have to trans-
late your solution’s RPO and RTO capabilities as something pre-
dictable that can be understood and agreed to by the business and
operational stakeholders of the company. You have to set a service
level agreement (SLA), as described in the following section.
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Making RPO and RTO Real with SLAs
When you recognize that the O in both RPO and RTO is objective,
you run into one of the key problems in most plans for data pro-
tection and availability. An objective is a goal, not a promise. The
promise comes when you describe your capabilities to the stake-
holders in the business, for example, when you tell the man-
agement of the people who rely on the server that they will be
“running again within one business day and will lose an average
of a half-day of data, but potentially a full day of data.” You might
tell the management team that, with nightly backup, you could
have an RPO of a half-day of lost data and that the RTO might
be one business day to repair the server and restore the data. But
those are goals based on ideal circumstances.
What happens when the circumstances are not ideal? In the sce-
nario I describe of the nightly backup of a failed server, I’ve made
a few assumptions:
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Tuesday’s data before you can identify the failure
(longer RTO).
If you’re doing incremental backups (only nightly changes)
instead of differential backups and Monday’s data is bad,
then Tuesday’s data is mostly irrelevant. Tuesday’s
incremental contains the differences between Monday
and Tuesday; without a successful restore of Monday’s
data, however, Tuesday’s changes may not be substan-
tive. This varies by the production workload (as well as by
the backup software’s tolerance for failed recovery points
within the storage repository).
If one of the weekend full backups is bad, then Monday’s
and Tuesday’s are irrelevant because everything is in the
context of the last full backup (which is unusable).
It’s not the best of both worlds, by any means, but I can describe
two last-resort recovery scenarios:
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»» Time to React: Sites without IT staff should have longer RTO
SLAs than sites with IT staff, because it will take time to get there,
depending on the arrangement, connectivity, and type of failure.
Perhaps IT staff can drive or fly from their primary location to
the remote office. Perhaps a local integrator or channel reseller
can be dispatched; in that case, a pre-negotiated contract may
have to be put into place, including an SLA from them to you on
their committed response rate to your issue.
»» Time to Repair: Should spare parts or even complete cold-
standby servers be acquired? Where can parts or servers be
expedited from? Does a pre-negotiated agreement need to
be signed between you and a vendor or distributor?
»» Technical RPO and RTO: These relate to issues involving the
RPO and RTO, as well as the perceived failure rate of the
media.
Notice that technology isn’t mentioned until the last item. The
first aspects of a server recovery SLA relate to people and process,
followed by materials and access. Once you get to the technology,
you’re likely more in the comfort zone of the IT professional, but
there are still unknowns concerning the technology. With all of
that addressed, after the server is ready to be restored, RTO still
varies based on whether you’re restoring from Monday or Friday:
All these overly dire and pessimistic examples are designed simply
to prompt you to compare your data protection technology’s pre-
sumed RPO and RTO to what you — as the IT professional respon-
sible for data protection — can assure your management of being
able to deliver.
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Here’s the secret to a successful SLA: Salespeople call it sandbagging,
where what you forecast will sell is less than what you believe
is likely. Others might call it underpromising and overdeliver-
ing. As a consultant and an IT implementer, I call it planning for
Murphy’s law.
When you’re setting your own SLAs, don’t believe the RPO and
RTO printed on the outside of the box of whatever technology
you’re looking at. And certainly, don’t repeat the RPO and RTO
to the business managers. Test it. Assume that something will
go wrong, and think about how you would address such issues.
(Heck, you can even go to the extreme of thinking that everything
will go wrong and then negotiate with the business managers
back to a point of reality!)
When negotiating your IT SLA with the business leaders, consider first
leading a brainstorming session with your senior IT folks to map out
the recovery plans: Identify the likely failure points and your mitigat-
ing actions when the plan does break down. Only after you have that
workflow should you talk to the business managers about SLAs.
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IN THIS CHAPTER
»» Risk Analysis (RA)
Chapter 2
Operational Metrics:
RA and BIA
C
hapter 1 introduces some of the metrics you can use to
assess what your data protection technologies are. This
chapter looks at how well you can utilize these metrics
within a business operations context. Here, you’ll see how to
apply them to the business as well as how to pay for the technolo-
gies that we believe you need.
Let’s focus on this last question to take technology out of the pro-
cess. It so happens that I live in Dallas, Texas, which is approxi-
mately 400 miles from the nearest large body of water, the Gulf of
Mexico. Because of this, I have no fear of a monsoon. Statistically
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speaking, the likelihood of Dallas being hit by a monsoon is effec-
tively zero. Speaking of water, my home is in a 100-year flood
plain, so, statistically, my land will be flooded once per century.
I could buy flood insurance for my home, but the probability is low
enough that I choose not to. If I lived in Houston, Texas, which is
much closer to the coast, flooding is more likely and I might want
flood insurance. But, because the probability is so much higher,
I probably could not afford it — the insurance actuaries will have
already calculated that fact into any possible premiums.
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or the browser isn’t reading the page correctly. Users don’t care
because their data and their productivity are impacted, regardless
of the cause.
That’s from the user’s perspective. Now think about the big
problems. Is your company in a flood zone? If you’re in southern
California, are you near a forest that can catch on fire? If you’re
in northern California, what would an earthquake do? If you’re
in the Midwest, are you in tornado country? In the north, what
would a blizzard do? On the East Coast, how likely is a hurricane?
If you live in Florida, a hurricane is a when, not an if.
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In business, some crises are likely to happen:
So, what is the likelihood of each event you listed? You may not
have exact figures but stack the kinds of things you’re protect-
ing against in relative probability to each other. This risk analysis
(RA) exercise is half of what you need in order to start planning
your data protection and availability plan.
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»» Scenario 2: On the other end of the list, if my production
facility were to be flooded, the entire server room — as
well as many other production resources, desktops,
infrastructure components, and even copy machines
and coffee makers — would be destroyed. My business
could be down for days and, in fact, might never reopen.
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IN THIS CHAPTER
»» Examining the intangible impacts of
downtime and data loss
Chapter 3
Calculating the Cost
of Downtime
E
veryone “knows” that downtime and data loss are bad,
though most don’t know how to quantify it. Figure 3-1 shows
industry research on what are the top concerns by senior
leaders related to downtime and data loss.
Even so, you actually can quantify some of the impact in a way
that helps bridge the dialogue between technical circumstances
and operational realities.
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Source: ESG Real World SLAs and Availability Methods, December 2017
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»» The server will be fixed by the end of the next business day
(Thursday).
Lost data
If a server fails, any new data since the last recoverable backup is
potentially lost. Since the server failed at 2 p.m. on Wednesday
and you’re assuming a reliable restore from a successful backup
on Tuesday night, you can presume that you will lose whatever
data was changed between 8 a.m. and 2 p.m. on Wednesday.
In Figure 3-2, the arrow starts at the time of the server failure and
points backward to the left to whenever the last successful backup
can be reliably restored from — in this case, the previous evening.
If the last backup had failed or was not able to be restored, the
arrow would point further to the left until a successful backup
could be restored. But, for now, data loss is quantified at six busi-
ness hours. Therefore, the formula would look like this:
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Outage time
Because the server failed in the afternoon, you’re assuming that
the end users may be idle for the remainder of the day and (in the
example) idle for the whole next business day.
You can say that, added together, To + Td = 12 + 6. So, the total time
impact of the server failure is 18 hours.
Now you need to decide how much those 18 hours are worth in
dollars. Again, there are two kinds of $-per-hour costs to con-
sider: human costs and profitability. Let me tackle the human
costs first.
Human costs
If you presume that an end user is completely idle while the IT
resources are offline, then the company is essentially paying the
salary or hourly wage of that person for no benefit. That can be
quantified this way:
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Every business is different, but you should be able to assess a
$-per-hour number for some percentage of your hard costs of
paying people who are unable to perform their primary role due
to an IT outage.
Profitability
When a team that creates revenue is affected, revenue is affected.
So, if you know the weekly or monthly profitability of a team, you
can quantify how much profit they’re generating, or not generat-
ing, during an outage:
A shipping department may not lose any money for a few hours of
downtime, but if an entire day is lost, expedited shipping charges
may be incurred in order to make timely deliveries the next day.
Adding together Hr and Pr gives you the total dollars per hour
impact that an IT outage has on the team. Using the first exam-
ple from each description, a team may cost $160 per hour by sit-
ting idle (Hr) and also not create revenue (Pr) at $1,000 per hour.
Thus, every hour is worth $1,160 to the company.
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worth to the business or team in consideration of human costs as
well as profitability or losses:
To = 12 hour outage
Td = 6 hours of lost data
Hr = $160/hour for the team to sit idle
Pr = $1,000/hour in lost revenue
This company will lose nearly $21,000 if a server fails, even if it’s
recoverable by the end of the next day.
So you now have a formula, but more work must be done. The
idea here is simply to help identify the variables that you’ll need
in order to quantify the cost of downtime.
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incident will be thought of from long-term memory as a minor
blip. Yes, the server went down, but everything resumed within a
day. Pretty good, right?
Assume that the outage impacts just one division within a larger
organization, perhaps the inside sales team within the company.
Various surveys presume that the average white-collar worker in
the United States costs $36 per hour. The reality of a statistic this
broad is that it’s guaranteed to be wrong for your workforce, but it
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serves as a placeholder for now. Now, presume a 10-hour workday
and that this team generates $10 million in revenue annually:
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In today’s world of information workers, you might presume that
the users have a variety of activities to perform. Between email
and database applications (including contact management), as
well as traditional office applications from a file server, perhaps
you could presume only a minor inconvenience to a percentage
of the users. Perhaps this results in a 10% impact to 10% of the
employees. Literally, this would mean that only five of the 50
employees had any impact, and therefore the cost would be only
$8,475.
The business impact may be even higher when you recognize that
a server doesn’t usually go down just once. Although these minor
inconveniences may fade in the memory of users, they typically
don’t fade from your system’s event log. You might be surprised
to find that a particular server fails twice per year, in which case
you would double all the previous numbers (which still don’t
include hardware or services costs).
Statistically, 18% of servers will have at least one outage per year.
But even at one failure per year, if you presume that a typical
server asset is expected to have a three-year lifespan, then you
should multiply the per-outage cost times the number of outages
per year times the number of years the resource will be in service:
Here’s the punchline: The server that has been recently purchased
and deployed to service the inside sales team of the company is
considered reliable and well managed, so it’s presumed to have
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an 18% chance of failing at least once each year. Note that by
adding statistical likelihood to the equation, you’re now d ealing
with a probability, not a possibility (that is to say when, not if).
With that in mind, the company should plan on that server’s
impact to the business being $45,765 over its lifetime of service.
That is the business impact analysis (BIA) for this one server.
It took a while in this chapter to break it down, but in real life,
the BIA goes quicker than you might expect. Essentially, as you’re
looking at what kind of protection or availability solutions you
might consider per server or application platform, you first need
to understand what kind of risks you’re protecting against as well
as the financial impact if one such risk were to occur.
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IN THIS CHAPTER
»» Total cost of investment (TCO)
Chapter 4
Financial Metrics:
TCO and ROI
S
ure, you can discuss data protection and availability tech-
nologies in terms of cost of impact, meaning the business cost
of the status-quo. There is, of course, the factor of price of
solution, which is different depending on whom you’re talking to.
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If you assume a traditional midsize company network with
25 servers, then to purchase a nightly backup solution for this
environment, you might be requesting $37,000, not including
deployment services.
But you aren’t done yet. You should also calculate the cost of
media. If you assume that each of the servers has 5TB of storage,
then you would have 125TB of active storage across the environ-
ment. At an average 60% utilization rate, you would need approx-
imately 75TB of data to be protected. With an aggregate daily
change rate of 5% (more for applications, less on file shares),
you’ll be writing about 4TB of new data per day. Backups can be
stored on disk, in the cloud, or within tapes. Using tapes for this
example, most backup software will use a different tape for each
daily job, plus four weekly tapes and 12 annual tapes. Conser-
vatively, this puts you at 20 tapes at $100 each for an additional
$2,000 in tape media (not including additional costs, like offsite
storage or services).
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You still aren’t done. There will also be ongoing costs, such as
power, space, and cooling. Space would be associated with your
facilities costs, but simply running the new backup software on
a commodity server platform might use 500 watts (plus the tape
drive’s 200 watts). The monthly power cost for this server alone is
At $0.06 per kilowatt-hour, this server will cost $31.20 per month,
or $375 per year. You also need to add in the ongoing labor costs
for these tasks:
This gives you the bigger picture, the total cost of ownership
(TCO):
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Thus, the TCO for this backup solution would be $65,000, which
is nearly double the initial purchase price and doesn’t include the
labor for any restores.
Return on Investment
If TCO is thought of as the bad number to consider in any financial
assessment, then return on investment (ROI) would be the good
one. Think back to the beginning of Chapter 2 on business impact
analysis (BIA), where we ask, “How much does the problem cost?”
If you spent $65,000 (TCO) to solve a problem that will cost the
company $150,000 (BIA), then you have solved the problem.
You literally added $85,000 to the company’s bottom line
profitability because it otherwise would have lost those dollars
due to the outages you mitigated. This is where ROI comes into
the picture — how much you saved or gained for the company,
in comparison to the amount you had to spend to accomplish it.
Calculating ROI
You can quantify ROI in different ways:
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»» Measure it as the percentage of BIA/TCO. In this case,
$150,000 divided by $65,000 yields 2.3 — or a 230 percent
yield. Others invert the percentage (TCO/BIA) as the percent-
age of the problem you’re spending to solve it. In this case,
you can spend 43% of the problem to resolve it. That also
means that you save 57% of your projected losses.
»» Think in terms of payback windows (time). If a problem
costs $150,000 over the three-year lifespan of the asset, then
consider how long into that window before the solution pays
for itself. In this case, with an average of $50,000 costs
annually, the first-year cost of $52,800 is basically breaking
even, but the second and third years go from $50,000 to
$6,000 annually, saving almost everything.
The actual calculation for ROI is to take the net gain ($150,000
minus the costs of $65,000) of $85,000 and then divide it by
the costs, after which you can multiply it by 100 to arrive at a
percentage:
TIME TO VALUE
Somewhat related to the ROI of a solution is how quickly you will start
to see the benefits of the solution you’re deploying. When considering
that you will see x dollars over the lifespan of the project, look also at
when you will see those dollars.
Compare when the costs are to be incurred to when the savings will
start to be realized. Will you just break even for the first year and then
see gains in the second and third years (such as when you deploy a
new component that will solve an ongoing problem)? Or will you see
gains the first year but fewer gains in later years, as you postpone a
problem or take on incremental costs throughout the project?
How else you might use (and grow) the earlier money can also affect
the overall costs for the project.
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Any positive ROI is a relatively good decision, and any negative
ROI is a relatively poor decision. Consider a $10 problem:
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»» The problem is currently costing the company $XX,XXX. (BIA)
»» I can solve the problem by spending $YY,YYY. (TCO)
From there, you might subtract one from the other for savings,
or you might find a ratio that helps you appreciate it. However,
based on some anecdotal findings from surveys and the experi-
ence of many years in supporting sales efforts, there is a credibil-
ity concern to be aware of. The next section explores that concern.
Using the percentage ROI method, assume that the ROI of a solu-
tion is 43 percent: You’re spending $70 to solve a problem that
costs $100. The challenge is that the solution is costing over half
of what the problem costs. That means that if your assessment
of the cost of the problem is perceived as too high (qualitatively,
not necessarily quantitatively) or that you may have underesti-
mated something in your TCO, then the ROI goes down from 43%
as costs start getting closer to what the problem itself costs. If
your CFO is willing to wager that a problem won’t happen as often
as you project, she might actually save money (or at least break
even) by just allowing the problem to happen — hopefully less
often than you expect it to. The project doesn’t have enough ROI
to warrant the initial expenditure.
On the other hand, what if you need to spend only $5 to save $100,
resulting in a 1,900% ROI? This situation presents the oppo-
site challenge: It sounds too good to be true. If you have a good
amount of credibility with the financial decision maker, then you
will be seen as a hero and your project will be approved (although
with that much credibility between you and your CFO, you may
not have calculated a specific ROI to begin with). For the rest of
us in reality-land, if it sounds too good to be true, some financial
decision makers will assume that it is not true (or isn’t viable as a
“legitimate” solution). There must be some significant cost factor
that is either drastically inflated in the problem or underestimated
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in the solution. Either way, the solution is not perceived as cred-
ible. After all, how likely is it that you can purchase a mere toy to
solve a real problem?
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business leaders and establishing the formula you will use in your
process, here are a few key ideas to frame the conversation:
If your discussion circle can collectively agree that when the data-
base server is down for as long as a day, employees can catch
up on email, or vice versa (and thereby reduce some variable by
half), then the collective team has turned your formula into their
formula.
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TCO comes from the invoice and projections. ROI is simply the
mathematical comparison of the BIA and the TCO.
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IN THIS CHAPTER:
»» Talking more
Chapter 5
Ten Keys to Better
Conversations
W
e finish the book in the same way we started it — by
recognizing that metrics on downtime and data loss
may be expressed in terms of either IT technologies,
operational concerns, or financial impacts. Keeping all three balls
in the air may seem daunting, but the trick is simply to under-
stand the audience(s) involved and to translate the numbers from
one set of metrics to another.
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Get Your SLAs Right the First Time
Starting SLA discussions with an assessment of current IT technol-
ogy inevitably limits your imagination and may reduce your open-
ness to consider what the business units need for assured uptime or
data protection. Instead, first consider the business requirements
and then assess your IT capabilities as they relate to satisfying them.
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comments such as, “We can’t afford to do anything more right
now.” But that’s like complaining that you can’t focus on the
water bill while staring at a broken faucet with water gushing out.
Server outages are occurring in your environment today, which
means that you’re experiencing some level of downtime and data
loss today. And, thanks to Chapter 3, you can calculate what that
data loss is costing the business today. Investing in better data
protection and recoverability is far cheaper than continuing to pay
for lost productivity caused by downtime and data loss.
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Don’t Forget the Soft Costs
Not every impact to downtime or data loss has a defensibly
calculable numeric value. And yet, impacts such as brand dilu-
tion due to bad reputations, or employee morale due to unreliable
systems, absolutely matter. For some organizations, the “soft”
costs are the tipping point between an uncomfortable hard cost
calculation and a decision to make improvements. Admittedly, the
higher up the organization leadership you go, the more you may
find that the soft costs are the actual motivation and that the hard
calculations are needed to help justify the purchase. Either way,
don’t forget to capture the soft cost impacts while you’re gaining
consensus on the hard cost formulas and calculations.
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These materials are © 2019 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
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