Business impact

Business impact

The ROI of Zero Data Loss – New Research Shows Axxana’s Phoenix More Than Halves the Probability of a Disastrous Outage, While Paying for Itself in Seven Months.

Recent research shows that the cost of downtime due to data loss and unplanned outages ranges from 5 – 8 percent of revenue. Although avoiding these costs is a high priority for most organizations, the challenge has always been to balance the cost of business continuity solutions with the risks and costs associated with outage-related downtime.

Until now, many organizations have settled for unnecessary levels of risk because they could not financially justify a business continuity solution that helped ensure continuous availability and uptime of their applications and data centers.

A recent business impact report by Wikibon1 shows how Axxana’s Phoenix lets organizations take control of the two primary factors affecting downtime—data loss and recovery time—in order to dramatically improve outage outcomes and uptime while also achieving a significantly higher return on investment than traditional business continuity solutions.

Drawing on data from Gartner, Forrester, and its own primary research, Wikibon analyzed the return on investment (ROI) for a “model organization” with about $2 billion in annual revenue. Specifically, Wikibon’s research focused on how zero data loss leads to certainty of data integrity, which in turn simplifies and accelerates recovery and reduces the chances of data center failures turning into hours-long IT disasters. According to the research, using Axxana’s Phoenix, the model organization can reduce the probability of at least one disaster in a four-year period from 50 percent to 18 percent—all by providing certainty of data integrity. In addition, it dramatically reduces Capex costs, deployment time, and operational complexity.

1 D. Floyer, Wikibon, The Business Impact of Eliminating Loss of Data in Flight. March 2019. https://wikibon.com/hardening-data-in-flight-reduces-it-disasters/

The Business Case for Axxana1

Solution cost (TCO): $2 million

Implementation time: 6 months

Net present value of the savings (NPV, 5% value of money): $21.5 million

Break-even point: 7 months

Internal rate of return (IRR): >900%

1 These values are based on a hypothetical use case for a financial institution with approximately $2 billion in annual revenue. For more details, see the report by Wikibon, The Business Impact of Eliminating Loss of Data in Flight.

[1] D. Floyer, Wikibon, The Business Impact of Eliminating Loss of Data in Flight. March 2019. https://wikibon.com/hardening-data-in-flight-reduces-it-disasters/
[2]
These values are based on a hypothetical use case for a financial institution with approximately $2 billion in annual revenue. For more details, see the report by Wikibon, The Business Impact of Eliminating Loss of Data in Flight.

The Rising Cost of Downtime

The duration of downtime determines whether an incident remains a simple outage or escalates to a full-blown disaster (i.e., a disaster exceeding seven hours of downtime). In either case, outages drain resources. According to the Wikibon analysis, outages that last up to an hour are likely to occur 30 times per year, at a cost of more than $41,000 per outage. That amounts to more than $1.3 million per year. On the other end of the spectrum, disastrous outages of more than seven hours cost $35,000 per minute (or, at least $14 million per incident) and have a 50 percent probability of occurring at least once in a four-year period.

Underlying these downtime statistics are two important factors: data loss and recovery time. When data loss occurs, or when an organization is uncertain whether data loss has occurred, disaster recovery becomes more complex and takes longer. This is because the organization must first determine whether data loss occurred, which can take hours or even days depending on the failure. If data has been lost, the organization must then reconcile data and restore consistency across the primary site and the secondary, disaster recovery site before it can perform failover and resume operations.

Average Cost of Outages

Outage Type

Frequency

(per year)

Cost

General outage (10 mins. – 1 hr.)

30

$44,178/incident

Extended outage (1 – 7 hrs.)

3

$11,667/minute

Disaster (>7 hrs.)

.16

$35,000/minute

Source: Wikibon1

Certainty of Data Integrity and Its Impact on Recovery Time

By contrast, if an organization has a solution that guarantees zero data loss, there is no data to recover or reconcile, so enterprises can failover immediately. Certainty of data integrity leads to a faster decision to failover, which leads to shorter recovery time and shorter downtime. This in turn reduces the number of serious outages and disasters and avoids the business costs associated with them. Another benefit of zero-data-loss solutions is that they enable automation of recovery processes by eliminating the manual tasks described above.

1D. Floyer, Wikibon, The Business Impact of Eliminating Loss of Data in Flight. March 2019. https://wikibon.com/hardening-data-in-flight-reduces-it-disasters/

[3 ]D. Floyer, Wikibon, The Business Impact of Eliminating Loss of Data in Flight. March 2019. https://wikibon.com/hardening-data-in-flight-reduces-it-disasters/

According to Wikibon’s research, a solution that can guarantee zero data loss improves disaster recovery and uptime in the following ways:

  • The probability of a disastrous outage (i.e., an outage of more than seven hours) shrinks from 50 percent over four years to 18 percent over four years.
  • The probability of a disastrous outage in one year decreases from 16 percent to 5 percent.
  • The probability of multiple disasters recedes to a very small number.

The Best Disaster Insurance Money Can Buy

Axxana’s Phoenix provides certainty of data integrity—and therefore rapid recovery and minimal downtime—by guaranteeing zero data loss. It protects yet-to-be replicated data (what Wikibon refers to as “data in flight”) in the disaster-proof Phoenix Black Box until receipt of the data is acknowledged by the secondary system. The Black Box resides at the organization’s primary data center and serves as a mini bunker with its own independent power, compute, storage, and communication capabilities. In the event of a failure, the data can be recovered via a WAN, cellular, or physical connection.

Because Axxana’s Phoenix guarantees zero data loss, there is certainty that applications can fail over without loss of data or data integrity. In addition, the failover—and failback—can be automated and tested on a regular basis. These capabilities help organizations recover rapidly and thereby achieve an extremely high rate of application availability and uptime.

Axxana’s Phoenix provides an exceptional return on investment because it guarantees zero data loss without requiring an investment in a nearby, synchronous data center (with the associated Capex and Opex of implementing and maintaining an additional data center and expensive communication lines). Another reason for the high ROI is that Axxana’s Phoenix also eliminates the risks of data loss incurred in regional and rolling disasters—something that traditional zero-data-loss solutions cannot do. By eliminating these risks, it lowers the probability of outages.

Figure 1 shows Wikibon’s summary of the business case for deploying Axxana’s zero-data-loss technology. These values are based on a hypothetical financial institution with approximately $2 billion in annual revenue. For details on how Wikibon arrived at these figures, please see Wikibon’s in-depth analysis and report.


Figure 1 – Summary of Business Case for Deploying Zero-Data-Loss Technology

Source: Wikibon

Given these advantages, Axxana’s Phoenix is the only logical solution for high application availability, lower risk, and a generous ROI.

Every day, organizations around the world use Axxana’s disruptive technology to eliminate risk, costs, and complexity related to business continuity. Only Axxana can guarantee zero data loss at any distance and near-zero recovery time—whether applications are on premises or in the cloud, and regardless of data center topology. To find out more, contact us.