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Quantifying DRaaS: How Veeam Maximizes ROI

Nov 12, 2019, 15:29 PM by Alex Simons

ROI Formula

Do you remember your last math class?

I don’t think I was ever presented an equation more complicated than the Return on Investment (ROI) for a Disaster Recovery-as-a-Service (DRaaS) solution:

DRaaS ROI = (Solution Value – Solution Cost) / Solution Cost

How would you quantify the value of an intangible cloud service that hopefully you’ll never need?

What’s the correlation between IT uptime and business profitability?

Heck - where would you even start?

This conundrum sounds eerily similar to the plot of Good Will Hunting. Unfortunately – Matt Damon is not actually a genius janitor – nor are his services available for most IT departments.

But let’s take a stab at distilling this equation and analyze the key financial variables to consider when extending disaster recovery operations to the cloud.


Solution Value: What’s the Total Cost Downtime?

The first benchmark we need to calculate is the value of the solution.

The valuation methodology for DRaaS will resemble a similar model to an insurance policy. A third-party provider will pool together a set criteria of requirements and develop a solution designed to offset risks in a monthly subscription format.

There are two key metrics to consider when measuring the Solution Value:

  • Recovery Point Objective = Data Risk. RPO refers to the maximum acceptable amount of data loss an application can undergo before causing measurable harm to the business.
  • Recovery Time Objective = Downtime. RTO states how much downtime an application experiences before there is a measurable business loss.

These two parameters will dictate your organization’s ability to preserve sensitive business and maintain business continuity in the event of an outage. High-priority applications with a direct correlation to revenue will require RTOs and RPOs near zero. For example, if your business has a customer transaction database, the uptime and availability of that application is critical to preserve business profitability.

Near-zero RTOs are entirely possible within the evolving DRaaS marketplace. These solutions are usually powered by the virtualized replication of image-level snapshots to an off-site cloud environment specializing in hot failover and warm standby. The “race to zero” will require a strong connection to the DRaaS network along with application clustering at the hypervisor level. Once the solution is configured – the secondary DRaaS infrastructure should have the computing power to re-spin an on-prem environment within minutes and trained recovery professionals to orchestrate the restore.

The value of the DRaaS solution is the value of business as usual. Aligning your RTOs and RPOs with DRaaS solution capabilities will maintain business profitability in the event of system failure.


Solution Cost: What’s the Total Cost of Ownership?

The other benchmark we need to calculate is the Solution Cost.

The best framework to measure the cost of a cloud solution is the Total Cost of Ownership (TCO). This is sum of all direct and indirect costs required to develop, implement, and administrate the application.

The direct costs for a disaster recovery solution are much easier to quantify. These are mostly capital hardware investments, software licenses, storage repositories, and administrative solution overhead. Each of these components should represent a line item within your IT budget.

The indirect costs are far more complicated. These subjective calculations include frustrating variables like vendor risk analysis, hybrid IT change rates, and long-term storage forecasting.

A cloud-native DRaaS delivery model is designed to reduce the overall TCO by simplifying the network configuration, minimizing OPEX, and eliminating capital hardware. This presents an efficient alternative to legacy disaster recovery systems by reducing the resources required to develop and maintain the target site for replication.

Nothing will drain your IT resources as quickly as complex disaster recovery operations. Navigating through a misconfigured operating environment or colocation facility may seem more complicated than Faraday’s Law for Electrolysis. A VM-centric DRaaS solution will alleviate these networking burdens and simplify day-to-day IT management by allocating cloud resources on-demand from pre-existing infrastructure specializing in high-uptime disaster recovery workflows.

Hyperscaled public cloud Infrastructure-as-a-Service (IaaS) providers try to leverage cheap upfront storage prices to present a lower TCO. But the general-purpose cold storage repositories struggle with warm standby and hot failover – leading to a higher TCO through the provisioning process. So working with a dedicated DRaaS provider will likely lead to a more cost-effective solution.

A proper DRaaS ROI calculation should be able to quantify the business impact of downtime and the total cost of solution ownership. This formulaic approach will help define the appropriate metrics to maximize solution value by aligning the availability requirements with the costs.


Veeam Cloud Connect Replication: Industry-Leading ROI

With more than 355,000 customers worldwide and 82% of the Fortune 500, Veeam Software is the clear market-leader in cloud data management and IT availability. Managed deployments of Veeam Cloud Connect Replication maximize the return on a DRaaS investment through the continuous availability of critical applications and virtualized infrastructure. This preserves your IT systems from harsh financial repercussions in the event of downtime.

Many organizations are interested in DRaaS but concerned about the cost and complexity. Platinum Veeam Cloud Service Providers (VCSPs) reduce these challenges by simplifying the Veeam deployment process and customizing solution architecture to meet tight RTOs. This bolsters ROI through an aggressive range of failover capabilities and replication at the hypervisor layer – so customer storage, applications, and operating systems never have to change. Key benefits of Veeam-Powered DRaaS include:

  • Hosted Cloud Disaster Recovery: Move your disaster recovery workflows off-site to a hosted cloud repository specializing in warm standby and hot failover.
  • DR Planning and Consultation: Professional services to ensure that your DRaaS solution is properly customized to suit your unique recovery requirements.
  • Customizable Solution Design: Leverage custom-fit modern backup technology to align disaster recovery policies with unique business priorities.
  • OPEX Focused: Eliminate the need for expensive hardware and capital purchases, using a single simple monthly payment with no hidden fees and data portability.
  • Monitoring and Analytics: Avoid downtime with real-time monitoring, reporting, and centralized management for backup repositories.
  • 3-2-1 Backup Rule: Bounce back from any recovery scenario with three copies of your data, stored on twos types of media, and one copy offsite.

The combination of Veeam’s industry-leading backup software and KeepItSafe’s purpose-built network of disaster recovery facilities enable a comprehensive DRaaS solution to ensure fast failover from data loss. The KeepItSafe infrastructure is supported by weathered Veeam recovery professionals - enabling end-users to quickly failover/failback on-prem environments within minutes. This managed approach reduces the RTOs and TCO - leading to a significantly higher ROI:

Veeam DRaaS

We invite you to take a moment to assess the value of our Veeam-Powered DRaaS solutions by downloading The Questions You’re Not Asking Your DRaaS Provider or scheduling a solution consultation with a KeepItSafe recovery professional today.

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