A firm’s competitive advantage can be enhanced by investing the right amount of capital in the right blend of Business Continuity / Disaster Recovery (BC/DR) technology. The inverse is also true. An insurance firm I talked with finally invested in a DR site after three site-wide outages in an 18 month period. In each occurrence, key lines of business either went dark or slowed significantly for 24-48 hours, crippling the firm’s ability to service existing policies or underwrite new ones.
Determining how much to invest depends on available budget, the business impact of downtime, and the choice of technology to reach a given level of availability. Looking at the chart, best practice in economic terms is to blend BC/DR technology so that your total investment is just enough to let your business operate at a level of risk it can stomach. The area near the point of intersection between the cost of downtime and the investment level in BC/DR represents the lowest total cost to the firm.
If you under-invest in BC/DR, you run the risk of exposing the business to exorbitant costs in terms of lost business, lost employee productivity, and damaged firm reputation. On the other hand, over-investing might not even be an option if your budget simply won’tallow it. If you do have the budget for increased levels of investment in BC/DR, the larger investment may not generate high enough returns to justify the added coverage.
How does vRanger economically mitigate the business risk associated with downtime for small- to medium-sized businesses? vRanger shifts your BC/DR cost curve downward and enables you to increase BC/DR coverage. It enables your business to reduce risks associated with downtime at lower cost than other options by providing: