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By Allan Graham
ROI for BCP can be improved by looking beyond the simple
"insurance" view. Companies that build multi-functional elements into
their BC programs will not have to wait for a catastrophe to see a return
on their investment.
Business continuity programs are frequently viewed as a
cost in terms of time, people, and money that companies hope and often
believe will never be used. Many therefore assume that BCP has no return
on investment. But what happens when a problem does disrupt a critical
system, application, or process? If the plan works well, one can generally
calculate how much money was saved. In some catastrophic cases, the entire
business could have been saved, and thus the ROI can be incalculably high.
The way to dispel the "all or nothing" view of ROI on business
continuity lies in the formula for ROI. By using "multipurposing" in the
formula, planners can lower some costs and/or gain additional incremental
returns and functionality, and be better able to measure ROI for BCP while
justifying the protection needed.
Multipurpose Existing Resilient
Infrastructure
One way to improve ROI for BCP is to use existing resilient infrastructure
for other purposes. For example, ROI is improved when one communications
connection is used for multiple purposes such as communications with clients,
affiliates, business partners, data vendors, service bureaus, ECNs, and
more. The solution saves money by reducing the cost of new connectivity
while eliminating existing connectivity costs through consolidation.
Transport High Speed Backup Data
Another valuable multipurposing opportunity is to use existing connectivity
for the additional purpose of transporting high-speed backup data to a
disaster recovery site, using it as a purpose-built business continuity
network. This functionality can be used to back up data to locations such
as data centers, third parties, and/or partners.
Build BCP into Every Application
ROI is improved when resiliency and reliability are included throughout
the design of a system or process instead of adding BCP as an afterthought.
Multipurpose solutions increase both reliability and functionality and
further justify the BCP investment. Every time a system or business process
is changed, it's an opportunity to take a fresh look at the entire process
from the standpoint of reliability.
Consider a Service Provider to Achieve
BCP
A service provider sometimes can provide the most cost-effective solution
with business continuity inherent. Planners may be able to better manage
data center costs, improve availability and reliability, consolidate applications,
reduce capital costs, and deploy systems much faster. The physical environment
and infrastructure used should protect against network, power, and central
office failure. Planners should look for SAS 70/Level 2-certified data
centers, redundant power grids, diverse Telco risers, backup generators
and batteries, and 24/7 monitoring with continuous backup.
Identify Regulatory Requirements
for Contingency Plans
Solutions are needed that respond to new regulatory requirements such
as those contained in SEC Rule 17a-4 regarding email/IM as well as SEC
rulings regarding NASD 3510 and 3520 and NYSE Rule 446 regarding business
continuity. There are solutions that can improve business continuity while
addressing these regulatory requirements. For example, some hosted data
centers can provide a lower cost profile, a high availability design,
and improved ROI on BCP while satisfying compliance requirements all in
one solution.
Share BCP Costs Across Several Departments
When several internal departments share costs, ROI is improved. For example,
compliance, operations, and the business continuity groups could all share
the costs for an SEC-mandated email archival solution. By performing appropriate
assessments, changes can be made that reduce costs and resolve issues
across multiple departments.
Use Geographic Load Balancing
When considering shifting an application from an old platform to a new
one, planners should consider geographically load balancing the application
across several data centers over a secure network. This can improve operational
resiliency, response time, and system latency by moving system components
closer to the sources of data and spreading the risk of component and
environmental failure over several sites. If the application does not
support this type of dispersed architecture, many of the same benefits
can be gained by using an already cost justified secure network or by
using a service provider to mirror critical data to a highly available
infrastructure.
About the Author
Allan Graham is SVP of Corporate Development at Sector, Inc., a leading provider of managed and professional services, business continuity solutions, communications, and data distribution solutions. He can be reached through Joyce Smith, Director of Marketing, at jsmith@sectorinc.com, or 866-383-3315.
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