Every business owner should know and understand the backup strategy that protects critical data that, if lost, could affect their bottom line. Business owners face unique challenges within their specific industries, whether they work in retail or manufacturing, energy or financial services. However, every business faces similar challenges when dealing with data protection and data security. When I discuss backups with a new or prospective client there’s often at least one part of their configuration that is weak enough to impact the integrity of the entire solution.
Today’s CIO needs a backup strategy that addresses hybrid cloud environments and distributed storage, and solutions should be carefully assessed as computing requirements evolve. But what about smaller businesses that don’t have a CIO? In these situations, IT-related tasks are often delegated to an employee who already has a primary job. The term “backup” is sometimes used interchangeably with an incorrect solution or feature like cloud storage, RAID or Disaster Recovery (IN THE FUTURE, LINK TO DR BLOG POST), and is often the most under-scrutinized part of a business’s IT environment.
As a sales consultant for a national IT Managed Solutions Provider, I’m proud to say our managed backup services work. Time and time again, our services have proved to be compliant, secure and monitored. We offer high-value/low-cost solutions in two levels: Backup Lite and Backup Pro. Backup Lite is appropriate for most small to medium businesses, and Backup Pro is capable of more robust features.
In an ideal world, every business owner would have a basic understanding of the role backup plays in their business. Although it’s much easier to simply place the ownership on a third party, business owners need to understand the basics like retention, security and your rights under the agreement. This ensures that when (not IF) you need to use your backup, you’ll be prepared for what’s next.
What should be backed up?
A backup solution needs to protect any data that would impact the business if lost. Paperless databases, proprietary information, trade secrets, email, client info, etc. should be kept secure and protected. This data should already be a global share where employees can save items, so managing the backup source is simplified. Various solutions can perform backup jobs on folders or entire machines, so business owners need to understand what the solution is protecting, and what they’re paying for. It’s generally more expensive to protect entire partitions or machines because of the data volume protected and the fact that this type will get you up and running much faster. In a virtualized environment protecting virtual machines (VMs) makes the most sense.
If protecting VMs or partitions is not in the budget, then only the critical data share should be the focus of your file-level backup solution. In the event of total loss, this option will have a longer recovery time. At this option, you’re not backing up the machine’s operating system or settings.
The True Cost of Downtime
There are two things every business owner must know about data backup and recovery:
- Recovery-Point-Objective (RPO): How much can you stand to lose? Can you afford to lose 24 hours of data, or just 15 minutes?
- Recovery-Time-Objective (RTO): How long can you be down? How much does it cost your business to be out-of-service for 1 hour? How about 24 hours?
The closer your RPO and RTO numbers get to 0 minutes, the more expensive and complex the solution becomes. This is where a Managed Solutions Provider (MSP) can tailor a data backup and recovery solution to your needs and capabilities, where “needs” translates to what lost data would lead to closing the business, and “capabilities” translates to the budget and other connectivity factors at your site.
Understanding the true cost of downtime should affect how you select RPO and RTO. You should have a basic idea of the true cost of an outage in your business to try and prevent loss of revenue. Delta Airlines lost $150 million in income and operational costs from a technology outage in 2016, not to mention other assumed investment losses on Wall Street. The scale may be smaller for your business, but when you consider overhead with labor, indirect emergency costs and lost income, you start to see the value in a tailored backup solution. Wondering what to do next? Check out our Data Security FAQ blog post for additional insight. [link to FAQ blog]
No matter where your data resides, there’s an appropriate backup solution that can be tailored to your specific needs – and Compudyne can help you find the right solution.
Compudyne announced today that the company has been named to the CRN® 2017 Solution Provider 500 list. The annual list, published by CRN (a brand of The Channel Company), ranks the largest technology integrators, solution providers and IT consultants in North America by revenue.
The Solution Provider 500 is CRN’s predominant channel partner award list, serving as the industry standard for recognition of the most successful solution provider companies in the channel since 1995.
CRN has also released its 2017 Solution Provider 500: Newcomers list, recognizing 58 companies making their debut in the Solution Provider 500 ranking this year.
“We are very grateful we have been selected to the CRN Solution Provider 500 list, as well as one of the select few providers on the Newcomers list for 2017,” said Patrick Gibson, Principal and VP of Sales and Marketing of Compudyne. “The recognition is a tribute to the dedication of our employees, long term customers, and our core values which we adhere to in all of our business initiatives.”
“CRN’s Solution Provider 500 list spotlights the North American IT channel partner organizations that have earned the highest revenue over the past year, providing a valuable resource to vendors looking for top solution providers to partner with,” said Robert Faletra, CEO of The Channel Company. “The companies on this year’s list represent an incredible, combined revenue of over $318 billion, a sum that attests to their success in staying ahead of rapidly changing market demands. We extend our sincerest congratulations to each of these top-performing solution providers and look forward to their future pursuits and successes.”
The complete 2017 Solution Provider 500 list is now available online.
About the Channel Company
The Channel Company enables breakthrough IT channel performance with our dominant media, engaging events, expert consulting and education, and innovative marketing services and platforms. As the channel catalyst, we connect and empower technology suppliers, solution providers and end users. Backed by more than 30 years of unequaled channel experience, we draw from our deep knowledge to envision innovative new solutions for ever-evolving challenges in the technology marketplace. www.thechannelco.com
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It may be a definition by Wikipedia, but it aptly describes IT Managed Services:
“IT Managed Services are the practice of outsourcing on a proactive basis management responsibilities and functions and a strategic method for improving operations and cutting expenses. It appears as an alternative to the break/fix or on-demand outsourcing model where the service provider performs on-demand services and bills the customer only for the work done.“ (Wikipedia, 2017).
Under this scenario, the business entity owns the hardware/software and is financially responsible for its upkeep while the Managed Services Provider (MSP) is responsible for the efficient functioning of the network configuration, hardware, cyber security, and applications availability. The key element is that the Managed Services Provider is responsible for the strategic selection of equipment, network configuration, efficient functioning of the system, and contributes significantly to the ability of the Managed System to generate additional profits to the business rather than just being a necessary expense.
According to McKinsey & Company as digitization becomes more integrated into an organization’s operations it drives down revenue growth and profits; Earnings before Interest and Taxes (EBIT)! This is contrary to what most CEO’s and CIO’s think and requires an understanding based on deep-dive reviews of hundreds of organizations. The importance of understanding this cannot escape the business strategy of any company or you will be leaving money on the table or even more crucial, may in fact be jeopardizing the very existence of your organization.
According to McKinsey & Company research, IT is driving down growth in revenue and earnings before interest and Taxes by 4.5% to 12% across all industries.
“This finding confirms what many executives may already suspect: by reducing economic friction, digitization enables competition that pressures revenue and profit growth. Current levels of digitization have already taken out, on average, up to six points of annual revenue and 4.5 points of growth in earnings before interest and taxes (EBIT). And there’s more pressure ahead, our research suggests, as digital penetration deepens (Exhibit 2).” (Bughin, 2017)
How this is missed by so many companies is that we are still using the “value of money over time” to calculate ROI and if the NPV says it’s a better investment than other projects, we can enhance the IT System and thereby improve an organizations performance. Lost in this scenario are all the intangible and interwoven variables that are impacted by the IT System resulting in either growth in revenue and EBIT, or declines in revenue growth and EBIT. Based on the research presented by McKinsey and Company, most companies in today’s market are realizing losses due to their IT investments.
The typical scenario is a need to upgrade hardware, software, and cyber security driven by a slowing network or aging equipment or software updates driven by obsolescence; maybe enhance some specific areas where better performance is desired. So we look at the cost of the project over maybe three years and look at our budget to see if we can afford it or how to manage other cost to fit it in the schedule. But the end result is more money invested in the IT system and very little ability to track the ROI. In fact, since the IT isn’t looked at as a way to generate additional revenue growth and EIBT, in most cases it ends up costing the organization more money than they thought it would and worse yet, it’s hidden losses so very hard to document and fix.
This is where companies like Compudyne can provide valuable insight and indispensable professional guidance to ensure the desired outcome is achieved which is always revenue growth and increased profits. A qualified Managed Services Provider like Compudyne can assist their clients in evaluating their digitization in synchronization with the client’s business strategy to achieve the desired outcome of increased revenue and EBIT.
Compudyne works in Partnership with companies like Microsoft, NimbleStorage, Cisco, Veeam, VMware, HP, f5, NVIDIA and many more. Working in partnership means maintaining technical staff certifications on the latest state-of-the-art technologies and strategies for implementation of optimized networks for our clients. Our CIO’s can assist the synchronization of the IT system into a business strategy. The end result is a better IT system and higher revenue growth an EBIT.
McKinsey & Company sums it up as “Improving the ROI of digital investments requires precise targeting along the dimensions where digitization is proceeding. Digital has widely expanded the number of available investment options, and simply spreading the same amount of resources across them is a losing proposition (Bughin, 2017).” Whether you’re upgrading or venturing into a new project, the optimization of your IT system is a very complex business decision and investment for companies to make on their own, and it takes the resources of a company like Compudyne with certified experts in all facets of IT & Business Systems to enhance a business strategy to fully take advantage of your IT investment dollars.
Wikipedia (2017). Managed Services retrieved on 02/10/2017 online from https://en.wikipedia.org/wiki/Managed_services.
Bughin J.; LaBerge L.; Mellbye, A. (2017). The Case for Digital Reinvention retrieved on 02/10/17 online from McKinsey & Company at http://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/the-case-for-digital-reinvention?cid=reinventing-eml-alt-mkq-mck-oth-1702.