Are you READY for disaster to happen …

1. Waiting ARE YOU READY FOR DISASTER TO HAPPEN … Are you READY for disaster to happen … ... Before you realize what your data is worth??? Presented by Steve FermanPresident and CEOeTegrity Systems International, Inc.

2. Steve ferman • Founder and President of eTegrity • 8+ Years in on-line data backup • Over 21 Years as an MSP (Managed Service Provider) • 100,000+ backups / thousands of restores • MSP Mentor’s “Top 250 Influencers” in the MSP Industry • Top 100 MSP’S in the country three years running • Frequent speaker and panelist for industry groups such as MSPAlliance, MSP Mentors, IT world • “The Busiest Man in Backup”

3. Today’s Topics • Overview – the true cost of backup and recovery • Implementing a tiered storage approach • Storage / Recovery options • Engaging your clients • About eTegrity • Questions

4. OVERVIEW – backup costs

5. WHAT WOULD YOU DO IF YOU LOST ALL YOUR DATA? 93% of businesses that lose data due to a disaster go out of business within two years…and 20% of the remaining ones close within 3 years.

6. THE FINANCIAL IMPACT OF DATA LOSS • Lost revenue $$ • Productivity losses • Other expenses • Re-creation of data if at all possible • Overtime costs to reestablish the business • Lost opportunities • Lost receivables • Damaged reputation • Marketing costs to rebuild your image • Lost clients

7. AND WHEN CHOOSING A BACKUP SOLUTION … • What we typically think about is - Backup • Ease of implementation • Ease of getting the sale • Price (“I get my backup for only “$X” per GB) • What we typically don’t think about is - Recovery • Recovery time objective (RTO) • Recovery point objective (RPO) • The “True Cost” of the entire backup / recovery process • Backup cost plus • All the other financial impacts (lost revenues, productivity, reputation, etc.)

8. Important concepts • Client Expectations • RTO = Recovery Time Objective • RPO = Recovery Point Objective • CDP = Continuous Data Protection • Classification of Data • Tier I = I need it now… business critical • Tier II = I need it but not immediately… non-business critical • Tier III = I can ignore it or delete it • Reality Check It’s not about the backup… it’s about the RECOVERY!

9. RECOVERY TIME CONSIDERATIONS • Across the Internet – 50 GB of data transfer takes • 3+ Days using a T1 line (1.544 Mbps) • 5+ Hours using FiOS (20 Mbps) • 2½ Hours using T3 line (44.736 Mbps) • Across the Internet – 300 GB of data transfer takes What do you if you have 300 GB of data? 1 TB of data? More?

10. Hidden costs of recovery • 50 employees w/ $50,000 average salary and 30% benefits • $12,500 / day in compensation costs • What’s the additional cost per GB of one day of down time … • If you have 50 GB of data • $20.83/GB if the loss happens at the end of Year 1 • $10.42/GB if the loss happens at the end of Year 2 • $ 4.16/GB if the loss happens at the end of Year 5

11. Reducing recovery time requirements • Increase your risk • Rely less on offsite storage; go with onsite storage • Use tape and rely on manual offsite storage • Don’t protect all of your data offsite • Increase download speeds • Implement tiered storage approach • Go “virtual” in a disaster

12. Storage / recovery options

13. Storage / recovery options • Local only • Offsite • Combination of local and offsite • Local virtualization • Offsite virtualization • True cloud computing

14. Storage / recovery options - Local • Tape • Workstation, USB, NAS devices • Disk to Disk • Pros and cons – when it comes to disaster recovery, “local only” storage has few “pros” and lots of “cons”

15. Storage / recovery options - Offsite • Offsite retention of tapes / tape drives • Disk-to-disk transfers between multiple company locations • Outsourcing offsite data to 3rd party provider / MSP • Pros • Protection in case of catastrophic disaster • Automated (depending on approach) • Low risk of technological obsolescence • Cons • Security concerns • Meeting RTO

16. RECOVERY TIME CONSIDERATIONS - OFFSITE • Across the Internet – 50 GB of data transfer takes • 3+ Days using a T1 line (1.544 Mbps) • 5+ Hours using FiOS (20 Mbps) • 2½ Hours using T3 line (44.736 Mbps)

17. How to reduce storage requirements • Technology • Compression • Deduplication • Block level backups • Analysis • Identify data that’s most needed in “recovery mode” • Segregate archival data • Eliminate unnecessary data

18. Starting point – analyze your data • Classification of Data • Tier I = I need it now… business critical • Tier II = I need it but not immediately… non-business critical • Tier III = I can ignore it or delete it What data analysis tools are available?

19. Data analysis tools • LAN Discovery Tool • Understanding what data is essential and what data can wait • Cleaning up client data saves time and money • Data management is key in any DR plan • Statistical Analysis Tool • Analyzes the entire data footprint • Gives complete understanding and overview • Provides accurate “live” sizing of your client’s data

20. Lan discovery • LAN Discovery offers multiple reports • Mines critical statistics • Helps construct effective data management policy • Enables MSP to design customized strategy • File Distribution Report • Top 10 file extensions • Identifies “excludible” files • Identifies potential Tier II files

21. Statistical analysis • Statistical Summary • “Mock” backup • Provides actual compression info • Analyzes change rate • Can be used to fine-tune

22. EXAMPLE – THE IMPACT OF DATA ANALYSIS Company A Company B Using AnalysisWithout Analysis Amount of data 3.0 TB 3.0 TB Eliminate Tier III Data (20%) (0.6 TB) N/A Subtotal 2.4 TB 3.0 TB Compression & Deduplication (1.75:1) (1.0 TB) N/A Subtotal 1.4 TB 3.0 TB Allocation – Tier I 0.8 TB (60%) 3.0 TB (100%) Tier II 0.6 TB (40%) N/A The Result RTO is reduced by 75%

23. Storage / recovery options - Combination • Combining offsite / local storage – “best of both worlds” approach • Speed of onsite recovery in non-catastrophic failures • Security of offsite storage in case of a catastrophe • Variety of approaches • Dual technologies (tape plus 3rd party offsite) • Integrated solutions

24. Storage / recovery options - Virtualization • Onsite virtualization • Addition of virtual server(s) for immediate turn-up in case of failure • Incorporation of local snapshots to meet lower RTO (faster turn-up to point “x”, followed by restoration of incremental backups) • Variety of technologies available to satisfy this approach • Offsite virtualization • Offsite virtual server(s) for immediate turn-up in case of catastrophic loss • Enables employees to access data over the Internet in less time than waiting for replacement of physical assets

25. Cloud computing – outside the box • Bypasses the entire concept of data recovery • Eliminate physical network • Store data in the cloud • Provide availability via the Internet • Reduces need for capital investment • Eliminates technological obsolescence concerns • Considerations • Security • Customization (can you host your non-standard applications) • Connectivity / speed • Data integrity (i.e. what is the Provider’s backup / recovery plan?)

26. Engaging your clients

27. What you should be asking your clientele • Did you back up your data in the last 24 hours? • Do you have a Disaster Recovery/Business Continuity Plan in place today? • How long can your business sustain being closed? • Is it critical that you store your data real time (transactional data)? • Do you have a documented crisis management process within your organization? • What data can you afford to “do without”? • Have you set Recovery Point Objective (RPO) for your business; that is, can you afford to lose a day's, half-day's, hour's, couple-hour's worth of data? • What federal, state or local regulations are you mandated to comply with? • What does it cost you per employee to be down per hour?

28. Critical documentation for your clientele

29. Understanding the Opportunity • Provide a valuable service to your client • Open new opportunities for recurring revenue streams • Open new opportunities for consulting revenues • Further enhance your client relationships

30. About eTEGRITY

31. ABOUT ETEGRITY • Unique appliance approach is a “best in both worlds” solution • State of the art technology • High levels of data security • SAS 70 Type II, Tier III data center • Channel-only solution • Full support for the Reseller / Partner

32. ETEGRITY Road map • Virtual Office – Now • Configurable offsite vs. onsite storage – Q4 2010 • Smaller footprint version for laptops – Q4 2010 • Offsite Virtual Office Recovery – Beta now, full version early 2011 • Onsite Virtual Recovery Server – early 2011

33. SUMMARY

34. summary • It’s not about the backup… it’s about the RECOVERY! • Recognize … and address … the hidden costs of recovery • Know the range of available backup / recovery approaches • Analyzing data is a critical element of the recovery strategy • Stay abreast of new approaches to old problems – a “cloudy” future isn’t necessarily a bad thing! • You must engage your clients! • All of the above can result in a win-win opportunity for the client and the MSP

35. Q&A

36. Thank you for attending! For more information 877.922.DATA www.etegrity.com