This document provides a summary of key findings from a Veeam report on data center modernization and availability. It finds that most organizations have modernized or plan to modernize their data centers to enable always-on operations. This is driven by demands for mobility, lower costs, innovation and customer experience. Companies are investing heavily in virtualization, storage, data protection and cloud computing. However, many still face an "availability gap" that costs over $10M annually on average due to downtime. Adopting modern availability solutions can help companies meet recovery time objectives of 15 minutes and reduce downtime costs by over half.

1. VeeamUP. Availability for the Modern Data Center: Business & IT Perspectives. Volume 04 Veeam Software
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Enjoy reading,
Your VeeamUP editorial team
VeeamUPAvailability for the Modern Data Center: Business & IT Perspectives
Volume # 04
Increasing efficiency by investing
in availability
Financial benefits of the always-on enterprise

2. VeeamUP. Availability for the Modern Data Center: Business & IT Perspectives. Volume 04 Veeam Software
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Shifting focus
from costs to continuity
§01

3. VeeamUP. Availability for the Modern Data Center: Business & IT Perspectives. Volume 04 Veeam Software
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Forward-thinking IT leaders are moving from short-term cost optimization to becoming
innovators with a significant positive impact on bottom-line business results. They
are enabling always-on operations across the enterprise and providing partners and
customers with continuous access to critical data and services.
In response to the growing business demands for non-stop operations and greater
availability, many organizations today are building datacenter upgrades into their
IT plans and budgets. IT decision-makers who are leading their enterprise into the future
act more as“Chief Innovation Officers”, investing in new datacenter technologies, which
guarantee high ROIs for years to come, enable non-stop business operations and reduce
costs associated with downtime.
In this issue of VeeamUP, we look at how investing in modern technology solutions is
helping enterprises cut costs by delivering the highest levels of availability and uptime.
We’ll also see how the market, customer demands and technology requirements are
changing by examining the results of our recent Data Center Availability survey, which
was conducted among 760 CIOs worldwide by an independent research agency in 2014.
Shifting focus
from costs to continuity

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Business drivers
for modernization
§02

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Currently, 81% of organizations have either modernized or are planning to modernize
their data centers—with a further 16% planning to do so within the next 2 years
(Figure 1). But what’s driving them to invest so heavily in new technology?
Increasingly, IT leaders are drawn in by the prospect of:
• Always-on operations
With end users demanding 24/7 access to data and applications, global customers
demanding service when it suits them and the“Internet of Things”keeping everyone
and everything permanently connected, the modern business never turns off.
In an always-on business, there is zero tolerance for downtime.
• Empowering a mobile workforce
The 9-to-5 workweek is a thing of the past. Today’s employees and teams need
constant connectivity to data, applications and each other. Giving a workforce the
freedom to be productive anywhere and at any time can completely transform
the way a business operates.
• Lower operational costs for IT
By minimizing downtime and giving all users constant access to data, businesses
can cut time spent on day-to-day data administration tasks and system maintenance
and significantly reduce operational costs.
• Innovating faster than competitors
To get ahead of competitors in increasingly saturated markets, businesses are looking
to boost agility so that they can react quickly to new opportunities. Because companies
that bring their new products and services to market first, are often the most
successful, companies need access to the right data and resources at the right time.
• Differentiating the customer experience
Speaking of saturated markets, one of the only non-product-focused ways to
differentiate a company today is by improving the customer experience it delivers.
With empowered customers demanding service how, where and when they want
it, IT is a critical component in delivering the levels of service and the kinds of
experiences that they’ve come to expect.
Business drivers for modernization
Figure 1:
Organizations that
have modernized, are
modernizing or are
planning to modernize
their data centers, %
TOTAL
25 56 16 3
26
57
16
FR
22
58
20
BR
26
48
21
5 DE
20
64
16
IT
21
65
14
US
7 83
10
SG
17
60
23
CH
43
3614
6 UK
26
6212
AU
30
30
22
18
NL
AVERAGE
1
Data center is already
modernized
Modernizing the data
center now
Planning to modernize
within 2 years
No plans to modernize
data center

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The investment
hotspots
§03

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Data center modernization is a hugely popular trend in organizations across the
globe. But what exactly does this mean to them? And where are they investing their
IT budgets? In Figure 2 below, you can see which modern technologies companies are
considering among the top priorities for their data center to invest in.
The investment hotspots
• Server virtualization
Server virtualization is the biggest area of investment, with 97% of companies
increasing or planning to increase their spending on it. Virtualization provides
the foundation for infrastructure consolidation, rapid provisioning and mobile
working – three major capabilities that enable always-on business operations.
• Storage upgrades
It’s not surprising to see heavy investments in storage upgrades. With data
volumes growing every day and more and more businesses unlocking the power
of analytics, one of the biggest challenges IT teams are facing is efficiently storing
and enabling fast access to huge quantities of data.
• Data protection and disaster recovery
With greater volumes of data, comes a greater risk of downtime and data loss,
the cost of which can be extremely high. Stronger data protection and disaster
recovery capabilities are needed to comply with regulations, avoid the high cost of
data loss and downtime and to ensure that companies can meet tough recovery
time and recovery point objectives (RTPO™).
• Cloud computing
The Cloud is gaining popularity as an IT platform – granting better business
agility, the simple extension of services to remote devices and by helping cut
costs with subscription-based software pricing modules. For modern businesses,
the cloud provides an easy way to get the tools and IT services they need for less,
while cutting capex (capital expenditure) costs.
Figure 2:
Technologies
organizations are
investing or planning
to invest in, %
97
95
94
93
88
87
83
82
79
79
78
70
20
Server virtualization
Storage upgrades
OS upgrades
Data protection and disaster recovery
Network virtualization
Virtual desktop infrastructure
Consolidating existing data centers
Private cloud
Public cloud: Infrastructure as a Service (IaaS)
Adding new data centers
Public cloud: Software as a Service (SaaS)
Public cloud: DR as a Service (DRaaS)
Other

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The cost of
the availability gap
§04

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Even with all of these above new functions and capabilities in place, investing in new
IT does not guarantee increased availability. In fact, 82% of organizations have
identified an“availability gap”between the demands of business users and what IT can
currently provide. If a company can’t deliver close to 24/7-access to business-critical
applications, it will lose revenue and the competitive advantage associated with being
an always-on business.
Every instance of downtime costs money due to lost business, lost productivity, lost
data and customer-service interruptions. On average, companies say it takes 1.33 hours
to recover mission-critical applications after an unexpected failure, and 3.97 hours for
non-mission-critical apps (Figure 3). While this doesn’t sound like a huge amount of
time, those downtimes cost an average of $82,664 per hour (Figure 4), and the average
organization has to handle 13 such incidents every year. These outages cost companies
more than $10 million per year in downtime and data loss with, potentially, $2 million
in unrecoverable data.
This is a colossal hidden cost of having insufficient IT capabilities. It’s also money that
could be better spent adding value to the business, driving innovation and acquiring
new technologies that deliver competitive advantages.
The cost of the availability gap
Figure 3:
Length of unplanned
application downtime,
hours
Figure 4:
Cost per hour
of application
downtime , US$
Mission-critical
applications
Non-mission-critical
applications
Mission-critical
applications
Non-mission-critical
applications
1,33
0,58
1,54
1,19
0,90
2,16
0,89
1,46
2,40
1,15
1,56
3,97
3,30
2,74
4,54
3,01
5,69 5,78
3,47
3,72
4,99
3,34
AVERAGE Australia Brazil France Germany Italy Netherlands Singapore Switzerland UK USA
$78 873
$105 844
$82 338
$50 611
$71 255
$75 641
$129 216
$56 953
$138 519
$68 052
$20 518
$40 920
$52 253
$26 389
$62 580
$26 069
$62 544
$26 658
$49 225
$51 944
Australia
Brazil
France
Germany
Italy
Netherlands
Singapore
Switzerland
UK
USA
AVERAGE $82 864
$43 886

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Availability improvements
lead to millions of dollars
in savings
§05

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So how can enterprises bridge the availability gap? The answer lies with modern
availability solutions that help not only to meet the demands of the always-on business,
but also help businesses to exceed expectations. Modern availability solutions deliver
high-speed recovery and data-loss avoidance and help companies achieve recovery time
and point objectives of less than 15 minutes for all applications to effectively improve
data availability.
In Figure 5, see how much lower downtime costs are when working with 15 minute
RTPOs, and how vastly different these costs are compared to the huge costs companies
reported before – less than half of the industry average at $38,444 per hour.
At Veeam®, we’re constantly striving to deliver the highest levels of availability for
the always-on, modern enterprise. If you’d like to learn more about how we could help
you cut downtime, save money and recover your virtualized workloads quickly and
reliably, visit www.veeam.com to find out more.
You may also want to read the full version of the Veeam Data Center Availability Report
2014 – please visit http://vee.am/availability2014 to download the PDF and see what
challenges of the always-on business you peers meet and what actions they take
to solve them.
Availability improvements
lead to millions of dollars in savings
Figure 5:
Maximum cost per
downtime incident
from meeting
15-minute RTPO, US$
Mission-critical
applications
Non-mission-critical
applications
$38 444
$40 723
$44 172
$36 603
$23 749
$33 633
$45 834
$64 439
$28 470
$56 459
$32 500
$21 476
$11 686
$22 675
$22 524
$12 787
$26 533
$13 776
$30 925
$19 217
$23 146
$26 187
AVERAGE
Australia
Brazil
France
Germany
Italy
Netherlands
Singapore
Switzerland
UK
USA

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