Data backup and restore utility services for financial institutions
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Data backup and restore utility services for financial institutions



The explosive growth of data continues to put increasing pressure on financial institutions to deploy cost-effective yet robust, secure, and ...

The explosive growth of data continues to put increasing pressure on financial institutions to deploy cost-effective yet robust, secure, and
scalable backup and restore solutions. Federal regulations that require stringent backup
measures bring even greater challenges,especially when disparate, nonstandardised
systems are deployed throughout large, global
enterprises. Many of these institutions are acknowledging that a third-party utility services
model is the most logical way to deploy a consistent, centralised, and standardised
architecture to reduce costs and risks



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Data backup and restore utility services for financial institutions Data backup and restore utility services for financial institutions Document Transcript

  • Data backup and restore utilityservices for financial institutionsViewpoint paper save on high up-front costs and protect data more efficiently. Protect your business-critical data whilst improving efficiencies, reducing costs, and enforcing standards and consistency.
  • Table of contentsIntroduction ......................................................... 1The cost of owning data backup solutions today ....... 2Owning and managing data backup and restoretechnologies in-house: an unsustainable model? ........ 2Where data backup costs are headed..................... 2How backup and restore utility services can help ...... 3How backup utility services differ from acloud service........................................................ 3Asset-buyout programmes can add needed cash ....... 4The difference between backup/restore servicesand archive/compliance services ............................ 4Implementing a data backup utility service ............... 5An HP case study ................................................. 5Summary ............................................................. 5About the authors ................................................. 6
  • The explosive growth of data continues to putincreasing pressure on financial institutions todeploy cost-effective yet robust, secure, andscalable backup and restore solutions. Federalregulations that require stringent backupmeasures bring even greater challenges,especially when disparate, nonstandardisedsystems are deployed throughout large, globalenterprises. Many of these institutions areacknowledging that a third-party utility servicesmodel is the most logical way to deploy aconsistent, centralised, and standardisedarchitecture to reduce costs and risks. Introduction And that’s only the beginning of the challenge. For one thing, federal regulations—such as Sarbanes- Your business depends on data, so you simply can’t Oxley, Basel II, the European Union Data Protection cut corners when it comes to backup. At issue, as Directive, and the Dodd-Frank Act with its Financial always, is how to cut costs—and not corners—whilst Stability Oversight Council—require that more meeting growing demands for access, confidentiality, information be retained in specific formats for longer and integrity. Complicating matters is the daunting periods of time. Moreover, backup environments— growth of business-critical data that needs to be especially in large financial institutions with backed up. multiple business units absorbed via mergers and According to a 2003 study by the School of acquisitions—are using disparate, nonintegrated, Information Management and Systems at the and nonstandardised systems. As a result, their University of California at Berkeley, the world environments have become unmanageable. produces between 2 and 3 exabytes (2 billion to 3 Many enterprises retain the traditional hardware- billion gigabytes) of unique information per year, centric view of backup. Additionally, the price of which is roughly 250 megabytes for every person in physical storage is decreasing by as much as 30% the world—and that was almost a decade ago. every year. As a result, budget-constrained CIOs Research also shows the amount of data that and CFOs frequently opt to purchase the “cheapest financial institutions collect and store grows by as box” at each refresh cycle. This not only sustains the much as 30% every year. With relatively new data backup environment’s rigidity and inconsistency, but types such as voice and video now prevalent, many it also further contributes to data centre sprawl, which storage administrators are now managing, storing, has already reached the breaking point. Although and backing up petabytes of data. storage hardware costs continue to fall, the total cost of ownership (TCO) of backup continues to rise. 1
  • Fortunately, new models such as managed data Owning and managing databackup and restore services delivered by trustedthird parties are becoming increasingly popular backup and restore technologies in-because they: house: an unsustainable model?• Significantly reduce or eliminate expenses Problems arise in large, complex, global enterprises associated with data backup, including high when individual business units purchase backup up-front cash solutions independently of each other. Aside from chronic underuse resulting from purchasing excess• Enforce standards and consistency across capacity, the major drawback is that these systems their environments may come from different vendors and may not work• Enable compliance with stringent federal regulations well together. These enterprises are paying too much• Reduce risk for used systems that are unable to seamlesslyFinancial institutions can alleviate complexity in their exchange information. And they’re also paying moredata backup environments whilst resolving equipment than they should for expensive data centre space,refresh needs by embracing a turnkey managed extra power, and backup and restore service. Utility services The ongoing economic climate has also causedalign the cost of data backup with the business value many enterprises to delay refreshes from the typicalof information and offer cost-effective pay-per-use three to four years to as many as six or seven years.terms. This approach also uses best practices and As older equipment begins to fail, large supportinnovative processes to increase performance and costs and maintenance get added to the already-protect data whilst achieving savings. strained ledger. Plus, staff downsizing has resulted in storing large quantities of data in warehouses, whichThe cost of owning data backup can interfere with the following availability issues:solutions today • Requesting backups and restores from a single pointAlthough the cost of storage hardware—including • Responding to immediate business needsdisk, tape, and servers—continues to decrease, • Addressing government regulations andmaintaining a data backup environment can be litigation actionsexcessively costly over time. IT executives understand Loss of institutional knowledge is another casualty ofthat the following factors weigh heavily on the total staff downsizing. Having a current backup infrastructurecost of owning data backup solutions: can enable clients to position themselves to manage,• Backup software backup, and access data in the future based on data• Backup agent software policies—critical in the age of big data.• Implementation and de-implementation• Management tools Where data backup costs are headed• Maintenance services The constant pursuit of inexpensive storage and• Staffing data backup technologies in the face of exponential data growth means that IT executives must continue• Facilities to search for the greatest value in their storage• Energy and backup solutions. Newer equipment is faster,Hardware and software represent as much as 50% includes deduplication, and uses less power andto 70% of all backup costs, and annual hardware cooling. But if executives keep doing what they’veand software maintenance costs can add as much as always done, what will their environments look like20%. Plus, as with any new equipment, the vendor and how will they perform over the next severalmay include professional service charges, set-up fees, years? Especially when, according to HP clients,and shipping costs. Paying for trained staff specialising roughly 75% of their IT budgets go to maintenance,in backup software and tools drives costs up even and their power costs are expected to grow fromfurther. Simply put, although the cost of technology 10% to 50%. The following factors will play a majordecreases every year, the cost of people, facilities, role in the answer:and energy is increasing in inverse proportion. • Capital expenditure (CAPEX) constraints, combined with an ever-increasing downward pressure on costsAnother factor to consider is that storage and databackup are rarely seen as a strategic investment— • Energy prices rising and power scarcity—even by financial institutions whose very existence especially when power consumption is a concerndepends on having fail-safe disaster recovery and a critical success factorsolutions in place. Yet the dollars they pour into • Compliance and regulatory standards, the impendingthese solutions are dollars they’re not spending on carbon cap, and the trade market systemstrategic investments that lead to innovation and • Emerging technologies’ effects and the trendbusiness success. toward virtualisation, deduplication, and service- oriented architectures 2
  • Enterprises—particularly large financial institutions— created based on recovery point objectives (RPOs) are best served by transitioning their traditional, rigid and recovery time objectives (RTOs) provideTypical data backup backup environments to those that are controlled, flexibility from a basic tape-based backup to high-solutions secure, reliable, responsive, scalable, available, and performance online data replication across multipleData backup consists of two easy to maintain. The fact remains that a consistent, locations. Enterprises can choose RPOs ranging fromprimary components: disk- centralised, and standardised architecture is best days to the last transaction and RTOs ranging frombased backup and traditional situated to leverage across all business units. In days to less than a minute.tape-based backup. keeping with the trend toward embracing pay-for-use Properly deployed data backup and restoreDisk-based backup utility models—much like a home power and gas strategies—administered by an experienced, trustedThe most common form of bill—they will seek out third parties to provide datadisk-based backup is a virtual partner—provide a full spectrum of data protection backup and restore services. Moving forward, thesetape library (VTL), in which across the enterprise and enable financial services enterprises will then be better able to:a disk-based appliance institutions to:emulates a traditional tape- • Control and reduce costs • Introduce appropriate deduplication technologiesbased appliance to the host. • Reduce complexity and over-provisioningAlong with high performance, • Eliminate as much tape as possiblethe main benefit of a VTL is • Free up capital • Meet appropriate accessibility, integrity, andreduced risk, because it can • Improve service levels recoverability service levels based on the data’sbe implemented by using • Reduce risk business valueexisting tape-based backupsoftware with few changes to • Access best practices • Eliminate data backup capital from their financialthe environment, processes, • Reduce maintenance spend books and move it to a variable operatingor policies. expense (OPEX) • Seek flexible sourcing modelsVTLs have advantages over • Reduce up-front acquisition costs and overall datatape, such as the emulation backup expenses by eliminating excess capacityof serial tape input/output, How backup and restore utilitywhich is akin to fast- services can help • Reinvest savings from capital investment inforwarding to a particular the businesspoint on a VHS tape as Financial services institutions are increasingly looking • Increase flexibility and scalabilityopposed to clicking directly to third parties to manage their data backup andon a DVD chapter. Also, a restore environments. HP recently provided backup • Improve data backup cost predictabilityvirtual tape doesn’t need to and restore services for several large banks that • Achieve savings in their data backup environmentbe mounted before data can recognised deploying and managing backupbe accessed, which speeds • Gain the peace of mind that comes with having and restore solutions in-house drains their capital- secure, off-site backup for their most valuable dataup the overall performance—not to mention VTLs are not expenditure and people resources.bound by sequential access. These enterprises understand that in today’s climate How backup utility services differTape-based backup they need flexibility to consume more as demand from a cloud serviceEnterprises needing to retain increases and reduce consumption and costs wheninformation for longer than Many financial institutions are cautious with a cloud demand subsides. Backup and restore services30 days—or those required approach. Data, one of their most significant assets, provide information-centric, flexible, managedto retain offsite data—usually is also one of their biggest risk categories. Our backup and protection services designed fordeploy traditional tape-based experience has been that most firms are looking financial institutions’ unique needs. These typesbackup solutions. Storage for mature, capability-rich services with low risk;administrators often prefer of services can move them from a traditional however, these services must still be nimble enoughphysical tape in these cases, technology-focused model to one that aligns to serve the needs of the business and producebecause it is typically the protection options with their business issues. savings whilst moving the business forward.most cost-effective. Becausedata is now being retained Backup and restore utility services replace both Typically, cloud refers to a shared pool of resourcesfor longer periods of time, monthly cost and management of administration, that can be accessed on demand over the Internet—managers must also factor assets, tools, and facilities with a flexible pay-per-use but these typically don’t do enough to eliminate therefresh tape costs into option. This model is ideal for financial institutionsTCO calculations. risks for financial institutions. Cloud services usually seeking to reduce their expenses associated with do not support application- and database-structured backup, enforce standards and consistency across data and are generally limited to latency-tolerant their backup environment, and reduce risk. data such as backup, archive, or file and print Managed backup and restore services—including data, which are not considered mission-critical. integrated hardware, software, and services— Additionally, because utility services accommodate cover the entire range of backup architectures and large-volume data, the provisioning cycles are information demands and are intelligently tailored to generally longer—approximately three days as the organisation’s business. Service level objectives opposed to about an hour in the cloud. 3
  • In a backup and restore utility service, the devices The difference between backup/ and applications can live in the vendor’s facility orA typical backup remain in the enterprise’s data centre. Most financial restore services and archive/and restore services institutions, seeking extra valuable space, opt for a compliance servicesoffering single client utility model to reduce risk and influence A July 2011 Forrester Research report noted thatAlthough data backup and the architecture. Others use a blend of the enterprise although neither backup nor archiving is a newrestore service providers offer data centre and the vendor’s facility to achieve the concept, “a significant amount of confusion betweentheir own specific services, best environment to address the business needs and the two” remains.1 Backup, Forrester explained,typical packages include for greater flexibility. Utility services are geared creates duplicate copies of data “so that firms canthe following: toward larger, more mature clients such as financial quickly restore data and resume critical business• Disk-based replication institutions for whom future backup needs are either operations in the event that data is lost, destroyed, or services unknown or variable. corrupted from software failures, hardware failures,• Backup services for human error, or disasters.” By contrast, archiving centralised servers Many trusted third-party providers incorporate “doesn’t duplicate data but instead deletes it from• Backup services for remote industry best practices and IT Information Library production systems, file servers, or other applications distributed servers standards into their service offerings. This ensures that IT and migrates the data to an archiving system with• Backup for user PCs services are aligned to business needs whilst guiding appropriate controls for longer-term retention.” organisations on the use of IT as a tool to facilitate business change, transformation, and growth. It also Data backup and restore services generally are is another key differentiator from cloud services. defined as those that provide information-centric, managed backup and protection services for Asset-buyout programmes can add laptops, distributed servers, remote campuses, needed cash business units, data centres, and enterprise systems. Archive and compliance services relate more to the Financial institutions, like all enterprises, seek ways long-term retention of sensitive, archived data for to address economic recovery. One attractive selling regulatory compliance and litigation. They support point offered by some third-party data backup providers a wide range of needs—from end-user data (such is an asset-buyout programme. In this scenario, the as email) to historical system information across the vendor purchases an enterprise’s existing backup data centre. assets and takes over its management. Backup and restore services deal with secondary By selling assets to the services provider, enterprises copies of data that need to be recovered when data can invest the additional capital into other parts loss occurs. These services are: of their IT or business and even enable additional • Designed to improve system availability liquidity. This is a key point for financial services institutions, especially considering recent consumer • Meant for short-term storage needs (no more than dissatisfaction. The cash infusion—which can be a few months to a year) worth millions of dollars—can be used as a starting • Overwritten on a periodic basis point to improve customer services on the front • Not intended to meet regulatory compliance needs end, standardise the environment, and/or integrate applications on the back end. Archive and compliance services handle primary data copy that is retrievable for compliance Additionally, outsourcing data backup services can purposes. These services are: alleviate internal chargeback issues, because they • Designed to improve system efficiency enable the organisation to bill individual business units based on consumption—whether they increase • Meant for long-term storage (from months to years) or decrease use of the service. • Intended for searching and retrieving for viewing • Maintained and enforce the enterprise’s retention policies 1 Updated Q3 2011: Backup Versus Archiving: Firms Need Separate Strategies For Each, Forrester Research, Inc., July 6, 2011. 4
  • Implementing a data backup In providing predictable and cost-effective backup and restore utility services to the bank, HP was able to:utility service • Reduce the risk presented by physical tapes—Each data backup and restore services provider which can be lost or stolen—by using disk-basedhas its own processes and strategies. They help backup and deduplication to reduce costs, backupenterprises reduce expenses associated with backup, windows, and recovery timesenforce standards and consistency, and reduce risk. • Establish recovery-point and recovery-timeA typical transition and transformation to a utility service levelsservices model should consist of: • Transition and retain all full-time employees of the• Initially managing the environment as is, because a bank’s data backup staff for two years—with all of critical success factor is to understand the enterprise’s the work done at the bank’s sites existing processes, tools, assets, and employees • Shift the bank’s backup environment from CAPEX• Adhering to the enterprise’s security and network to OPEX whilst providing technology innovation, requirements by following its security policies refresh, and growth, enabling it to focus on and standards strategic initiatives supporting the core business• Supporting in-flight project commitments • Enable billing to the bank’s lines of business based• Aligning the solution, hardware, and software on consumption technologies over time—based on the agreed • Purchase bank-owned hardware for millions architecture, sizing, and volume of data by site— of dollars and execute an early buyout on whilst prioritising transition and transformation multimillion-dollar assets leased by the bank activities with the enterprise’s consolidation activities • Provide material savings over five years and• Eliminating the use of tapes in the future-state financial predictability with year-over-year environment by electronically copying backed-up reductions via committed unit pricing data to the disaster recovery site • Eliminate costs and risks associated with attracting,• Migrating smaller sites to remote backup services training, and retaining employees to deliver a centralised backup solution per region, thereby reducing cost and improving availability • Provide rapid access to needed skill sets at lower costs• Providing standardised backup reporting• Moving to standard services, tools, and processes Summary to enable global standard delivery and reliability The cost of storage in general—and data backup whilst reducing expenses in particular—continues to rise even though the• Achieving the desired future state price of equipment continues to decrease. Financial institutions are facing a variety of challenges, including the current economic malaise, budgetAn HP case study constraints, disparate systems across multipleHP recently provided data backup and restore utility business units, and increasing regulatory to one of the world’s most prominent banks, Many are turning to trusted third-party servicewhich wanted to create a global, standardised providers to manage their data backup and restorebackup operating model to support its strategic initiatives. By doing so, they can gain multipletechnology direction. At the same time, it wanted benefits, including increasing utilisation rates,to reduce its backup infrastructure TCO by 10% addressing big data, enforcing compliance, initiatingto 20%. The bank needed services to back up standardisation, delivering low TCO, minimisingapproximately 29 petabytes of data across 29 sites. risk, and shifting backup and restore solutions fromIt also wanted to monetise its assets to strengthen its CAPEX to OPEX.balance sheet whilst migrating from CAPEX to anOPEX cost structure and transferring its people to HPwith no workforce reductions for two years.The bank requested a no-growth and 60% year-over-year growth proposal for 5 and 10 years. Its toppriority was to build on its capital strength as muchas possible during the economic downturn to solidifyits position in supporting customers and clients. 5
  • About the authors Tim Bowers Tim Bowers is the global product marketing manager Joe Jakubowski for Storage Services at HP Enterprise Services. Joe Jakubowski, global offering manager for Backup His responsibilities include strategy, planning, and Restore Services at HP Enterprise Services, is communications, and execution of the marketing responsible for developing new capabilities and plans for Storage Management Services, Archive & services for HP clients. Jakubowski’s experience Compliance Services, and Backup & Restore encompasses 29 years in the information technology Services. Bowers also helps HP clients and industry. His responsibilities at HP included positions prospective clients determine how to optimally in sales, business development, sales analysis, incorporate storage into their enterprise. With more system software development, and operations. than 25 years at HP, he has spent the last 15 years Additionally, he spent two years at EMC heading in product management, managing midrange, web up a new product sales team for the major auto hosting, communications, and storage offerings. manufacturers and Tier 1 suppliers. He also pursued investment funding to establish a successful startup Ross Feldman technology firm. Ross Feldman is the Industry CTO of Banking and Insurance for HP Enterprise Services Financial Frank Cermak Services. Previously, Feldman was with Bank of Frank Cermak is the lead architect for the Storage America, where he served as the senior vice Services, Backup & Restore Services offering at HP president, e-Commerce Business Development and Enterprise Services. Cermak’s responsibilities include Innovation, as well as emerging payments strategy strategic planning, architectural design, and support executive. In that role, he focused on federal of the Backup & Restore Services offering and regulatory control and emerging strategies in related packages. He has 30 years of management, consumer banking. He has more than 15 years of engineering, and design experience beginning with experience in financial services, with deep expertise a position in the Hills Brothers Coffee IT department. in structuring and managing business development This was followed by several long-term positions at transactions, M&A evaluations and execution, and Nestle Beverage, MCI-Systemhouse, and EDS. federal regulatory control expertise (Dodd-Frank’s Durbin Amendment). Prior to Bank of America, Feldman held leadership roles at America Online (AOL), Citigroup, and JPMorgan and Co. Share with colleagues Get connected Get the insider view on tech trends, alerts, and HP solutions for better business outcomes© Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The onlywarranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing hereinshould be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.4AA3-9257EEW, Created February 2012