Blackouts, Threat of Terrorism Spur Disaster Recovery Planning

One-Fourth of IT Managers Surveyed Say That the Survival of Their Company Would Be at Risk if a Potential Disaster Were to Strike and They Did Not Have Their DR Plan in Place

MOUNTAIN VIEW, Calif., Sept. 3, 2003 -- Research sponsored by VERITAS Software Corporation (Nasdaq: VRTS), the leading storage software provider, reveals that lack of proper disaster recovery planning is threatening corporate technology infrastructures and the survival of the businesses that rely upon them. According to a survey of IT managers conducted by Dynamic Markets Ltd., one-third of U.S. respondents say that terrorism first prompted them to create a disaster recovery plan, and one-fourth of global IT managers warn that the very survival of their company could be at risk if disaster were to strike and they did not have their current recovery plan in place.

"As a nation, we've lived through a series of catastrophic events in our recent history. With the recent Eastern Seaboard blackout and increasing number of virus attacks, the immense susceptibility of data centers has become all too apparent," said Mark Bregman, executive vice president, product operations, VERITAS Software. "The research demonstrates that IT managers perceive these threats and have come to recognize the fundamental importance of proper disaster recovery procedures. Yet, results still show an alarming disregard towards elevating disaster recovery to its rightful position as a top-tier corporate concern."

In fact, the survey showed that for 76 percent of companies, the decision-making process for disaster recovery is limited to IT staff. Despite the potential impact to the entire business, in the United States, only 5 percent of CEOs and 4 percent of non-IT managers have decision-making responsibilities when it comes to defining disaster recovery strategy.

According to the research, man-made disasters such as 9/11 are a greater concern than natural disasters. While only six percent feel exposed to hurricanes and tornadoes, more than four times this amount worry about terrorism (25 percent). Technological failure ranks highest in the list of perceived threats, with the top five most common threats that large companies feel exposed to ranking as follows: hardware failure (61 percent), software failure and viruses (both 59 percent), fire (56 percent), hackers (36 percent), and accidental employee error (31 percent).

Of those surveyed, 47 percent say the main criterion they use to calculate the amount spent on disaster recovery is the financial risk associated with each potential disaster. The potential threat of terrorism is the most expensive threat that companies have calculated, at $115 million. Respondents believe the five most likely consequences of a disaster if no plan was in place would be: data loss (64 percent), decreased employee productivity (57 percent), damage to customer relationships (50 percent), reduction in profits (49 percent), and reduction in revenue (37 percent).

"The recent blackout that struck the Eastern Seaboard cost New York City businesses more than $1 billion, or $36 million per hour. Disaster recovery planning is the best corporate defense against potentially dire consequences in the case of unforeseen circumstances. It can make the difference between corporate survival and irreparable damage," said Steve Kenniston, technology analyst of the Enterprise Storage Group. "U.S. businesses exhibit blatant weaknesses on the frontlines of their present defensive strategies. It is critical that corporations begin to examine, test and update their disaster recovery plans, ensuring that these plans offer comprehensive coverage of all system resources and can be quickly put into action."

Key Risks of Current Disaster Recovery Strategies:

Accessibility

Of the IT managers surveyed, 62 percent only keep their disaster recovery plan in the company's main data center. Only 20 percent keep the disaster recovery plan at a company building away from the main data center, and only 15 percent keep the plan located off-site at a third party's secure location. Five percent of IT managers with responsibility for their disaster recovery plan were not sure where their plan is located.

Coverage

Almost a quarter of disaster recovery plans (23 percent) do not cover the entire data center, and only 15 percent cover all of a company's remote offices. Only 20 percent of disaster recovery plans cover the desktop environment, and 14 percent cover the laptop environment.

Testing

The research found that 24 percent of companies neglect to test their disaster plan, especially in the United States, where 34 percent do not test. Among those who do not test their plans, the top barrier to testing was reported as lack of time (48 percent).

To learn more about VERITAS Software's Disaster Recovery solutions and consulting services, contact VERITAS Software's Consulting Services at 877-870-5700.

Further Details About the Research:

"VERITAS Disaster Recovery Research 2003," an independent market research report by Dynamic Markets commissioned by VERITAS Software Corporation, surveyed IT managers with responsibility for their company's disaster recovery plan in large companies across the United States, 10 European countries, the Middle East and South Africa.

The objective of the research was to gain insight into the current state and some of the more complicated issues associated with disaster recovery. 877 interviews were conducted.

About VERITAS Software

With revenues of $1.5 billion in 2002, VERITAS Software ranks among the top 10 software companies in the world. VERITAS Software is the world's leading storage software company, providing data protection, storage management, high availability, application performance management and disaster recovery software to 86 percent of the Fortune 500. VERITAS Software's corporate headquarters is located at 350 Ellis Street, Mountain View, CA, 94043, tel: 650-527-8000, fax: 650-527-8050, e-mail: vx-sales@veritas.com, Web site: http://www.veritas.com.

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