NY Financial Services Disaster Recovery
According to the Ponemon Institute, most data center downtime is caused by weather. In the Financial Services industry, extreme weather events can cause long term outages even if the actual data center downtime is only a few seconds. The problem with current generation financial systems is that there are innumerable inter-dependencies between systems. Each system has to be brought up sequentially or else they will throw errors and further forestall the entire system integration. This takes on average two to four hours according to the Ponemon Institute. which Thus this is the time when it is most critical to avoid a major service disruption.
Business continuity is the most important deliverable for financial services in the United States. Every second of downtime can result in millions of dollars of transactions delayed.
Agile Data Sites is a data center colocation and disaster recovery provider that specializes in the NY region. Many times when we speak about disaster recovery in this industry we might mean an IT disruption or a loss of business continuity. In this case we are talking about literal disasters – the kind that bring down trees or burn down buildings. These can be a major driver of business continuity disruptions.
The Ponemon Institute developed a survey in January of 2016 which asked companies to identify the major causes of data center downtime. They found that weather related downtime causes about 11% of data center downtime. Each one of these events caused an average of $455,000 loss because of the disruption to operations and the ensuing recovery. This was greater for financial institutions resulting in a single downtime event costing $2.4M.
It is then important to find the best practices for mitigating that exposure. The United States has many different climatic zones. Most weather events occur across a wide geographic area but the property damage tends to occur at specific locations due to the specific geographical and infrastructural features. We have created an infographic that lets you see the areas of the country that have had the greatest amounts of property damage due to weather from 2006 through 2015. The size of the circles indicates the cost of the property damage caused by the event. If your area is subject to high levels of property damage you may want to spend extra time planning for adverse weather events.
The following infographic shows the biggest weather events in the last 10 years and the damage they inflicted.
You can click on the key to isolate one of more types of events and their areas of geographical impact.
It is best practice that companies have a disaster recovery site in a geographically diverse area – ie. located at least 60 miles from the parent site. While there are weather events that cause mass outages across thousands of square miles the most likely concurrent outages occur within the same city block. In fact, the weather events that are most likely to cause property damage, flooding and tornadoes, tend to affect only a select area without affecting areas just a few miles away.