Disaster Recovery Survey 2012: 86% of companies in the Philippines unprepared for data disasters

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Data storage leader EMC Corporation recently conducted a survey on data-related disasters experienced by companies in the Philippines. Among its shocking results are as follows:

  • 86% of organizations in Philippines are not very confident that they can fully recover after a disaster, according to a new survey of 2,500 companies in Asia Pacific and Japan
  • 74% of Philippine organizations surveyed have lost data and/or suffered systems downtime in the last year
  • Hardware failure (66%), loss of power (45%) and  software failure (40%) were cited as the primary causes of data loss and downtime for Philippine organizations
  • 44% of organizations cite loss of employee productivity as the most likely consequence of downtime
  • 47% of Philippine organizations who store a backup copy offsite for disaster recovery still use tape for recovery, and 51% still use CD ROM (although 42% now use disk-based storage)
  • 58% of these organizations want to replace tape all together, highlighting the need for next generation backup and recovery

Download a copy of EMC Philippines disaster recovery survey 2012, or continue reading for the full story.

EMC Corporation (NYSE: EMC) today announced results of ‘The Disaster Recovery Survey 2012: Asia Pacific and Japan’, which found that 86% of companies in Philippines are not very confident that they can fully recover systems or data in the event of a disaster, and that 74% of Philippine organizations lost data or suffered systems downtime in the last 12 months. These findings highlight the need for backup transformation from antiquated technologies that are not suited for today’s data growth or availability expectations. A move to next-generation backup and recovery solutions ensure continued business operations in the event of a natural disaster, malicious activity or more routine and common disruptions to IT systems. In fact, the research has shown that the causes of systems downtime are often the commonplace disruptions to IT, such as hardware failure or data corruption, rather than natural disasters or other major incidents.

Commissioned by EMC and conducted by independent research company Vanson Bourne ‘The Disaster Recovery Survey 2012: Asia Pacific and Japan’ looks at the state of backup and disaster recovery in the region to understand how well companies are prepared for data loss and systems downtime.

Survey findings

Disruption happens: downtime and data loss more likely from an IT problem than a natural disaster

The research showed that it is not the extraordinary that creates problems, and it can take just a little to cause a lot of disruption, even something as simple as data corruption.  The three most common causes of data loss and downtime in Philippines are:

  1. 1.       Hardware failure: 66%
  2. 2.       Loss of power: 45%
  3. 3.       Software Failure: 40%

This compares to just 23% of respondents citing natural disasters as a cause of systems downtime or data loss, and 15% of respondents attributing systems downtime or data loss to employee sabotage.   Regardless of the cause, 41% of Philippine organizations reviewed and changed their procedures for backup and recovery in response to an incident.

Furthermore, 26% of businesses increased their spending on backup and recovery after a disaster. This is against a backdrop where 35% of Philippine organizations surveyed did not feel they were spending enough on backup and recovery.  On average, the research found that businesses across the region are Philippines spending 0.9% of their IT budgets on backup and recovery.

Economic impacts: Lost revenue attributed to systems downtime

The study identified that there are measureable business impacts from systems downtime, with the top three cited as:

  1. Loss of employee productivity: 44%
  2. Loss of customer confidence/ loyalty: 42%
  3. Loss of revenue: 38%

Systems failure resulted on average in three lost working days for the Philippine businesses in the survey. Based on an average eight hour working day, this is the equivalent of 48, 000 man-hours for a Philippines company employing approximately 2,000 employees. Additionally, each organization lost an average of 175GB of data during a 12 month period. Given that 1MB of data is approximately the equivalent of 25 email documents in size, losing 175GB of data would be the equivalent of losing 4.37 million emails.

Despite loss of revenue being rated as a major consequence of systems downtime, the research also revealed that many Philippine companies are not doing enough to protect essential customer data. 81% of organizations do not have a disaster recovery plan for their CRM systems, while only 7% of organizations who do have a disaster recovery plan for their applications would require their CRM applications to be up and running first following systems downtime.

Furthermore, businesses in Philippines are failing to take advantage of insurance premium benefits that a comprehensive disaster recovery plan can engender. 38% of companies across Philippines are obliged by either insurance policies or regulatory requirements to have a disaster recovery plan in place. More importantly, however, 13% of Philippine organizations surveyed are offered reduced premiums by their insurance provider according to the strength of their IT systems backup/disaster recovery strategy. However, 55% of Philippine organizations do not know if their insurance provider offers such reduced premiums – or they had never considered it at all – highlighting a missed opportunity for many businesses.

Outdated solutions: 47% still depend on tape and 51% still use CD Rom for backup and recovery, but this looks set to change

For backup and disaster recovery purposes, 47% of Philippine organizations still rely on tape. Looking at the operational cost associated with tape, organizations in the Asia Pacific and Japan region spend on average more than US$58,821 including transportation, storage, test and replacement of tape for the purposes of offsite disaster recovery. Meanwhile, 51% of Philippine companies rely on outdated CD-ROM for backup storage. Surprisingly, 23% of Philippine organizations have an employee take a copy of their backup home with them for safekeeping.

However, 42% of businesses in Philippines are already using modern disk-based backup and recovery solutions. This trend looks set to increase, with 58% of tape-using organizations looking to move beyond tape. The top three reasons cited for this planned move are:

  1. Faster backups: 44%
  2. Speed of data recovery and system restores: 40%
  3. Increased security because of end-to-end encryption: 40%

Preparedness for routine disruption or more significant incidents starts with a next-generation backup approach that leverages disk with data deduplication and network based replication technologies.  The survey shows the reaction after disruption is to spend more on backup and recovery, but the damage is done in terms of time and money during a downtime as well as longer term damage to customer loyalty.  By raising the visibility of the most common problems facing companies today and the associated economic consequences, organizations can proactively review their own strategies for backup and recovery to ensure they can meet business requirements.

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