IBM - BC-DR - 28apr2010

Managing Risk

Achieving Security and Resiliency with IBM Theodor Stanescu Dennis van Hees April, 28th 2010

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Agenda

 Why does business resilience matter?  How to identify risks to your business  How can IBM help?  Why IBM?

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71%

Percent of CIOs that rank risk one of their top 3 business priorities

54% 500+

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Growth in annual storage shipments to meet explosion of data

Percent increase seen last year in Web links that can harm your company

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Resilience optimization is balancing the financial impact of risk and the solution cost.

Resilience

Optimization (general)

… rapidly adapt and respond to risks, as well as opportunities, in order to maintain continuous business operations, be a more trusted partner, and enable growth.

“… an act, process, or methodology of making something (as a design, system, or decision) as fully perfect, functional, or effective as possible”

(IBM BCRS Organization)

(Merriam – Webster Online Dictionary)

Resilience optimization (RO) “An approach to helping a business find, attain and sustain an appropriate balance between the costs of providing resilience and the business value of that resilience” (IBM Business Continuity and Resiliency Organization)

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And … the world is riskier than it used to be.

Changing environment

More complex regulations

 Expanding risk exposures

 Changing industry and regulatory standards

 Increased global and regional

 Geographic dispersal requirements

 Interdependencies

 Varying regulations per country

 Supply chain disruption

Heightened impact of business disruption

Impact of coping with the financial turmoil

 Greater financial implications of downtime

 Loss of critical personnel

 Brand vulnerabilities

 Loss of key knowledge

 Data integrity requirements

 Reduction in attention to significance of risk  Reduction in testing recovery plans

Disaster recovery and business continuance can be one of the top IT spending priorities for many businesses.

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While reducing costs is essential in today's economic climate, it’s also essential to not unknowingly take on too much risk.

Smart is: “The right risk at the right price”  Understanding the potential loss associated with the level of risk being assumed  Understanding the costs associated with the mitigation solutions employed to deal with the selected level of risk  Selecting the mitigation solutions consistent with the level of potential loss  Selecting the optimum architecture for the mitigation solutions  Optimized resilience can help reduce costs to the business

      

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Loss avoidance High risk capital allocation position Maintain credit rating Fine and penalty avoidance Maintain customer confidence Maintain social responsibility Cost avoidance

Resilience optimization Total costs associated with risk and mitigation

Potential risk cost elements

Types of mitigation solutions

Higher

 IT resilience architecture  IT service delivery topology

Optimum resilience risk balance Costs resulting from risk loss events

Lower

 People and processes  Work place strategy Costs of all mitigation solutions employed

Level of resilience

 Data and information protection  Regulatory compliance

Higher © 2010 IBM Corporation

Business resiliency can provide near-term cost efficiencies as well as strong, long-term returns on investment.

The right business resiliency strategy can help you:  Mitigate risk – Avoid the costs of downtime, brand damage and market share lost to competitors, and reduce the financial impact from business disruptions

 Protect brand and revenue – Properly assessing the threats to your IT infrastructure, their potential business impact and your tolerance for risk can help you plan a realistic strategy

 Protect capital – Analyzing cost tradeoffs can help you avoid unnecessary investment

 Reduce costs – Resiliency solutions can help protect you from failed restores and lost data

 Improve service – You can better align a resilient infrastructure to the needs of your business to maintain service level agreements based on your tolerance for risk

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Not all risks are created equal‌

Frequent

Frequency of occurrences per year

Data driven Viruses Worms

Data corruption Disk failures

Business driven

Long term preservation

Data growth System availability failures

Application outages

Audits Network problems New products Regulatory compliance

Governance

Event driven

Failure to meet industry standards

Terrorism/civil unrest

Marketing campaigns

Natural disasters

Infrequent

Workplace inaccessibility Regional power failures

Mergers and acquisitions

Building fires Pandemics

Low

Consequences (single occurrence loss) in dollars per occurrence

High

Source: IBM

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Once risks are understood, an appropriate resilience strategy can be developed.

Accept

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Mitigate

Transfer

Accept the risk

Mitigate the risk

Transfer the risk

An exposure is deemed acceptable to the business

Strategy required and implemented to reduce risks

When it is more cost-effective to transfer to another entity (such as insurance, leaseback or outsource)

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We can help you realize significant financial impacts and improvements in recovery service-level performance.

IBM Resiliency Consulting Services

Helps identify, quantify, and prioritize business and IT risks, then develop strategies and implement designs to address those risks

Advisory

Helps balance workloads and reduce application, data and system loss

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IBM Managed Resiliency Services

IBM Infrastructure Recovery Services

Proactive

Reactive Responsive

Helps eliminate the impact of disruptive events with IT and work area recovery

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IBM Business Continuity and Resiliency Services provide end-to-end, comprehensive solutions to help keep your business operating.

LEVEL OF ENGAGEMENT

IBM Managed Resiliency Services

IBM Infrastructure Recovery Services

EL V LE

OF

S RE

N IE IL

CY

IBM Resiliency Consulting Services

ADVISE

RECOVER

MANAGE

SERVICES CONTINUUM

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We help globally deliver resilience solutions through resiliency centers and delivery and consulting experts around the globe.

Our depth and breadth of resources include:  A unique infrastructure and skill set designed for flexibility and responsiveness in a disaster situation, from simple to complex environments  Support for over 12,000 clients with over 15,000 contracts  A business model based on risk and syndication of resource at a machine level  Options for dedicated or limited shared resource  Successful support for over 750 client recoveries.

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IBM’s Global Delivery model includes the following elements to meet our clients’ requirements and mitigate risks:  Flexible delivery alternatives in each location

 Parallel and faster ramp-up, delivering savings more quickly

 Multisite solution spanning multiple time zones, allowing “follow the sun” without a night shift:

 Access to the world’s largest experienced services skill pool, with extensive industry and technology expertise, in 173 countries worldwide

– 24x7 support for mission-critical applications and enabling infrastructure – 24x7 testing for applications that need to quickly move into production – Work-day overlap between countries

 Multisite solution in different economic zones, helping mitigate the effects of: – Wage inflation – Currency risk

 Access to the world’s largest business consulting and research organization  Multilanguage support with native speakers across the globe (English, French, Dutch, Portuguese, Spanish, Chinese, etc.)

– Political and economic uncertainty

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IBM’s global network of business process outsourcing and transformation delivery centers meets clients’ diverse, growing needs

Krakow Stockholm Rotterdam

Markham Toronto

Edmonton

Montreal Greenock Newcastle upon Tyne St. John

Dublin Dalian

Paris Bratislava Endicott Lisbon Lexington Durham Budapest Greenville Athens Atlanta Nashville

Calgary Lenexa Tulsa Dallas Houston

Tokyo Okinawa Shanghai Calcutta

Costa Rica Bogotá

Chandigarh Bangalore

Finance and administration

Manila

Pune

Delhi/Mumbai

Brisbane

Procurement Human resources Customer relationship management

Hortolandia Buenos Aires

Industry-specific In plan

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IBM delivers application services seamlessly through delivery centers leveraging IBM’s infrastructure, processes, tools and skilled resources

Eastern European sites Vilnius (Lithuania) Bucharest (Romania) Prague (Czech Republic) Szekesfehervar (Hungary)

Edmonton Calgary

China sites Dalian Shanghai Shenzhen

Barcelona

Vancouver Toronto

Madrid

Guadalajara Mexico City San Jose Caracas Lima

Hanoi

India sites Bangalore Pune Kolkata Chennai Hyderabad Delhi/Gurgaon

Brazil sites Hortolandia Sao Paulo Sao Salvadore Rio de Janeiro Nova Lima

Tokyo

Ho Chi Minh Metro Manila

Brisbane

Asuncion Johannesburg Strategic Regional

Montevideo Buenos Aires Martinez

Capetown

Sydney

Perth Adelaide Ballarat Melbourne

Canberra

Application Services Global Delivery Center (GDC)

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IBM delivers high-quality infrastructure services to our clients from four hub countries - chosen because they optimize cost, skills, consistency of methodology and cross-functional delivery support

China sites Shanghai Dalian Shenzhen Brazil sites Hortolandia Sao Paulo Rio de Janeiro

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Argentina sites Martinez Catalinas Urquiza

India sites Bangalore Pune Delhi Gurgaon Hyderabad

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Each region also supports a network of global and regional infrastructure delivery sites for the flexibility that clients expect North America sites United States Atlanta (2) Ashburn Boulder Chicago Columbus Dallas Lexington Los Angeles Miami

Newark Poughkeepsie Raleigh Rochester San Jose Secaucus Southbury Sterling St. Louis

Canada Calgary Toronto Montreal Copenhagen Brno Dublin

Europe sites Mechelen/Nossegem Montpelier Milan (2) Ehningen Frankfurt Kista/Solna Winterthur Portsmouth/The Nest Warwick

London Paris Madrid Lisbon

Sterling Forest Gaithersburg

Shenzhen India sites Bangalore Chennai Hyderabad

Turin Szekesfehervar

Mexico City

Caracas

Seoul Tokyo Shanghai Taipei Hong Kong

Dubai

BogotĂĄ

Japan sites Haga Sagmino Kawasaki Makuhari Nanko Mitaka Mihama

Singapore Service Delivery Center e-business Hosting Services (e-bHS) Business Continuity and Recovery Services (BCRS) EMEA Regional Global Delivery Center (GDC) Global Delivery Center

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Santiago Hortolandia

Sydney

Sao Paulo Montevideo Buenos Aires

Johannesburg

Ballarat Melbourne Canberra Auckland Wellington

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Business resilience from IBM: helping you reduce risk and optimize opportunities.

A golf association protects over 500 gigabytes of missioncritical data every day via cloud computing using our business continuity and resiliency services; this includes over four million membership records and more than 150,000 daily e-mails.

A leading UK-based metals trading exchange worked with IBM to design and deploy a fully dedicated, supplemental trading facility capable of 100 percent business continuity as a work area recovery site, saving the firm millions of dollars in trading losses and downtime costs in the event of a disaster.

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Business resilience from IBM: helping you reduce risk and optimize opportunities. (continued)

A European healthcare company was able to cut recovery times down to 10-20 minutes and ensure near around-theclock availability by leveraging business continuity and resiliency services from IBM.

We helped the Austrian government determine the potential business impact of a three-day outage (which was assessed at $US332,813) and then implemented the right resiliency plan to help avoid an outage.

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Why IBM: We leverage extensive, global experience.

Our unparalleled experience includes:  More than 40 years of business continuity and disaster recovery experience.  More than a decade of successful customer recoveries and crisis management experience.  More than 10,000 disaster recovery clients.  More than 3,400 information protection clients with over 42 petabytes of data under management.

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Why IBM: We provide broad solution capabilities.

We can address your unique needs through:  Our global resiliency centers, which are designed for multivendor environments, and provide support for more than 200 hardware and software vendors, including HP, Sun Microsystems, Cisco and our own IBM products.  Proven business process and technology expertise to help you design and implement the right solution for your business.

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Thank you for your time today.

For more information, visit: ibm.com/services/continuity

Contact:  Dennis van HEES, Business Development Executive  E-mail: dtvanhees@sk.ibm.com  Theodor STANESCU, Strategy and Architecture Services Manager  E-mail: Theodor.Stanescu@ro.ibm.com

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Trademarks and notes

IBM Corporation 2010  IBM, the IBM logo, ibm.com, System i and System p are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with the appropriate symbol (® or ™), these symbols indicate US registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml  Adobe, the Adobe logo, PostScript, the PostScript logo, Cell Broadband Engine, Intel, the Intel logo, Intel Inside, the Intel Inside logo, Intel Centrino, the Intel Centrino logo, Celeron, Intel Xeon, Intel SpeedStep, Itanium, IT Infrastructure Library, ITIL, Java and all Java-based trademarks, Linux, Microsoft, Windows, Windows NT, the Windows logo, and UNIX are trademarks or service marks of others as described under “Special attributions” at: http://www.ibm.com/legal/copytrade.shtml#section-special  Other company, product and service names may be trademarks or service marks of others.  References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates.

BUP03005-USEN-03

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