87% of Businesses in Malaysia Might Not be Able to Recover Lost Data and Systems

New independent research sponsored by EMC points to outdated backup and recovery infrastructure

Malaysia – June 21th, 2012 

News Summary:

  • 87% of organizations in Malaysia 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
  • 69% of Malaysian organizations surveyed have lost data and/or suffered systems downtime in the last year
  • Hardware failure (51%) data corruption (51%) and loss of power (50%) were cited as the primary causes of data loss and downtime for Malaysian organizations
  • 40% of Malaysian organizations cite loss of employee productivity as the most likely consequence of downtime
  • 43% of Malaysian organizations who store a backup copy offsite for disaster recovery still use tape for recovery, and 35% still use CD ROM (although 61% now use disk-based storage)
  • 80% of these organizations want to replace tape all together, highlighting the need for next generation backup and recovery

EMC Corporation (NYSE: EMC) today announced results of ‘The Disaster Recovery Survey 2012: Asia Pacific and Japan’, which found that 87% of companies in Malaysia are not very confident that they can fully recover systems or data in the event of a disaster, and that 69% of Malaysian 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

EMC Survey 2012 infographic

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 Malaysia are:

  1. Hardware failure: 51%
  2. Data corruption: 51%
  3. Loss of power: 50%

This compares to just 13% of respondents citing natural disasters as a cause of systems downtime or data loss, and 16% of respondents attributing systems downtime or data loss to employee sabotage.   Regardless of the cause, 61% of Malaysian organizations reviewed and changed their procedures for backup and recovery in response to an incident.

Furthermore, 51% of businesses increased their spending on backup and recovery after a disaster. This is against a backdrop where 36% of organizations surveyed did not feel they were spending enough on backup and recovery.  On average, the research found that businesses across Malaysia are spending 9.54% 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 by Malaysian organizations as:

  1. Loss of employee productivity: 40%
  2. Loss of revenue: 37%
  3. Delay in product/service development: 39%

Systems failure resulted on average in two lost working days for the Malaysian businesses in the survey. Based on an average eight hour working day, this is the equivalent of 32,000 man-hours for a Malaysian company employing approximately 2,000 employees. Additionally, each organization lost an average of 1099GB of data during a 12 month period. Given that 1MB of data is approximately the equivalent of 25 email documents in size, losing 1099GB of data would be the equivalent of losing 27.48.1 million emails.

Despite loss of revenue being rated as a major consequence of systems downtime, the research also revealed that many Malaysian companies are not doing enough to protect essential customer data. 64% of organizations do not have a disaster recovery plan for their CRM systems, while only 5% 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 Malaysia are failing to take advantage of insurance premium benefits that a comprehensive disaster recovery plan can engender. 62% of companies in Malaysia are obliged by either insurance policies or regulatory requirements to have a disaster recovery plan in place. More importantly, however, 40% of Malaysian organizations surveyed are offered reduced premiums by their insurance provider according to the strength of their IT systems backup/disaster recovery strategy. However, 36% of Malaysian 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: 43% still depend on tape and 35% still use CD Rom for backup and recovery, but this looks set to change

For backup and disaster recovery purposes, 43% of Malaysian 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 USD58,821 (RM185,484) including transportation, storage, test and replacement of tape for the purposes of offsite disaster recovery. Meanwhile, 35% of companies rely on outdated CD-ROM for backup storage. Surprisingly, 14% of Malaysian organizations have an employee take a copy of their backup home with them for safekeeping.

However, 61% of businesses in Malaysia are already using modern disk-based backup and recovery solutions. This trend looks set to increase, with 80% of tape-using organizations looking to move beyond tape. The top three reasons cited for this planned move are:

  1. Faster backups: 40%
  2. Speed of data recovery and system restores: 38%
  3. Durability (disk-based methods have a longer lifespan): 31% ; and Total cost of ownership: 31%

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.

Quotes

“This research raises a number of interesting issues around backup and recovery, not least that businesses need to take a proactive approach to ensuring their systems can cope well before an incident occurs. From our own experiences, it seems clear that a next-generation disk-based approach to backup and recovery is best placed to get business-critical applications up and running immediately, so that the economic impact such events have are minimized. By careful planning and ensuring we make the right investments, we are confident that we are well prepared for systems downtime, whatever the cause.”

Aakash Gandhi, Chief Technology Officer, Infoplex

“It’s not uncommon that we find major organizations that cannot recover a lot of their backups, or rely solely on replication for Disaster Recovery.  With increasing regulatory requirements in most countries, increasing and more aggressive security threats and continual growth of data fuelled by online channels, it is more important than ever that companies have a well defined DR strategy. Companies that do not have an effective strategy risk losing customer data and suffering significant fines from the regulators.  There are new technologies that remove human error, eliminate the potential for losing data (such as backup tapes), provide encryption and automate the monitoring and reporting across the entire data protection environment. These solutions help our customers save money while reducing risk.  This report looks at the risks and shows us that there is a lot of work to do.”

Michael Alp, Vice President, APJ Backup and Recovery Systems Division, EMC

“Asia Pacific and Japan, is not immune to the uncertain economic times facing the rest of the world.  Against this backdrop, it is more important than ever for businesses to ensure that they are protected against systems downtime and data loss or they are to withstand the damaging effects of loss of productivity and revenue. By establishing a well thought-out and strategic approach to backup and recovery that utilizes the next-generation solutions available today, businesses can withstand the consequences of day-to-day outages as well as more serious incidents, while reducing the total cost of ownership of their backup systems.”

Shane Moore, Director  APJ Backup and Recovery System, EMC

Survey Methodology

For ‘The Disaster Recovery Survey 2012: Asia Pacific and Japan’ – commissioned by EMC, Vanson Bourne interviewed 2,500 IT decision-makers in private and public sector organizations in Australia, China, India, Japan, Korea, Indonesia, Malaysia, The Philippines, Singapore and Thailand. Each organization ranged between 250 and 3000-plus employees and represented a variety of industries including manufacturing, retail, financial services and telecoms, among others.

Additional Resources:

SAP Forum highlights strength in Mobile, In-Memory and Cloud

Technology innovations and applications that empower businesses for today’s highly competitive, digitally interconnected, socially networked and unwired world

KUALA LUMPUR, 20th June 2012 – Imagine a world where everything is mobile, everything is in the cloud and every data’s significance to the business is analyzed and made available when you want it, anywhere, anytime. That world may be here sooner than you think as we see a paradigm shift in the world of technology. SAP’s 40 years of innovation has culminated in a strengthened stable of business applications which will be  featured in the SAP Forum that will run its South East Asian tour across six countries in the region till 22 August, including Philippines, Indonesia, Malaysia, Thailand, Singapore, and Vietnam. Highlighting SAP’s solutions in mobility, in-memory and the cloud, the conference brings real-life case studies of how SAP can help businesses run like never before. An event aimed at fostering dialogue between thought leaders, existing and potential customers, partners and other members of the SAP ecosystem, it comprises sessions and demos that focus on the new wave of innovation, value creation and deep customer insights.

Kowshik Sriman, MD, SAP Malaysia and Singapore, speaking at SAP Forum Malaysia 2012

SAP Celebrates 40th Anniversary

This year is the 40th anniversary of the founding of SAP, one of the world’s leading enterprise application companies. What began as a five-man operation is now one of the world’s largest independent software providers, employing more than 55,000 people in over 50 countries, serving more than 183,000 customers globally. SAP software powers 85% of the top 100 most valued brands in the world. In South East Asia, SAP serves nearly 4,000 customers comprised of large companies and small and medium-sized enterprises.

Tactical Cloud Acquisitions to Boost Enterprise Performance

SAP’s business applications allow organizations to run better and even faster. The recent acquisition of SuccessFactors brings a boost to Human Resource management– a core function in most organizations – by simplifying HR processes through the cloud.  Another recent acquisition, Ariba, is the leading provider of collaborative business commerce solutions which also extends companies’ business commerce processes into the cloud. “The cloud is bringing a new powerful way for enterprises to interact with their customers and partners. SAP’s commitment to building the business network of the future and growing SAP’s strength in the cloud,” said SAP South East Asia President, Tim Moylan.

Tim Moylan, President, SAP South East Asia, delivering the keynote at SAP Forum Malaysia 2012

Key to Growth : Managing Big Data

At the SAP Forum, Moylan will speak to an audience of customers, partners and industry experts about real time management of data and why it is the key to growth.“We live in a highly interconnected and fast-changing world, facing dramatic technology advances such as the emergence of cloud technology and the increasing connectivity both business and social through the rapid expansion of mobile devices. There are many opportunities to turn the growing amounts of data into intelligence that businesses can use via in-memory computing. We are entering an age of business networking where companies of all sizes and industries will connect, collaborate and trade in open, transparent and flexible business networks. SAP is dedicated to providing the best software solutions and applications to create growth, increase productivity and innovation,” said Moylan.

Social Networks as the Next Business Frontier

A recent study suggested that a growing number of ASEAN CEOs view social networks as an important channel of engagement with their customers and partners. The number of CEOs adopting social networks as a business tool is expected to grow from the current 25 per cent to 68 per cent in the next three to five years. At the SAP Forum, Moylan will highlight the latest SAP tools that are available for enterprises. He will also share insights on how social media chatter can be converted to business intelligence, and how this helps companies build the smart business network of the future. Moylan reiterated SAP South East Asia’s commitment to get closer to customers and spend more time listening to the challenges that they are facing.