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Disaster recovery in the cloud: Vendors jump in; enterprises wade

The hottest new thing in DR are cloud-based services. But are they ready for the enterprise?

By , Network World
September 27, 2012 06:07 AM ET

Network World - Disaster recovery and the cloud should be a match made in heaven. Take a function that enterprises love to hate and address it with an outsourced, efficient cloud service that makes it easier and less expensive to reach recoverable nirvana, and presto - instant success. Well, not so fast.

During the past 12 to 18 months, analysts say the disaster recovery as a service (DRaaS or RaaS) market has exploded, with legacy DR vendors pivoting to offer cloud-based services and a crop of new pure-play cloud providers leveraging automation and shared resource efficiencies to break into the game.

But with a nascent technology in a critical industry, analysts say enterprises should tread carefully. Some question if cloud-based DR systems have proven they work at scale and wonder if they've yet earned their stripes in helping companies recover from major disasters. Plus, there are a whole new crop of challenges and technical specifications that need to be considered when implementing a cloud-based DR strategy compared to traditional methods. All that adds up to a big caution sign for the enterprise.

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DR has gone through an evolution during the past few decades. Collocation and managed service offerings began replacing tape-based DR solutions in earnest more than a decade and a half ago, says Forrester DR analyst Rachel Dines. And just in the past few years cloud-based services have emerged. But are cloud services really new, or just existing managed DR services redefined using the latest buzzwords?

DRaaS is fundamentally different managed hosted DR options in two key ways, Dines says: automation and multi-tenancy. DRaaS is almost fully automated, she says, requiring little human intervention to kick off the recovery process, provision the virtual machines and spin up the necessary applications from the correct storage bins. This is in contrast to a managed service DR plan in which there may be a checklist of technical steps a system admin has to perform. That automation, she says, can significantly improve the speed of recovery and personnel needed to execute a recovery plan after a disaster.

The second difference is the multi-tenancy aspect. When providers can support multiple customers from the same server racks, it creates efficiencies, which lead to generally lower prices compared to managed DR services on dedicated infrastructure for individual customers.

DRaaS began rolling out with four or five providers who retooled their systems for cloud-based offerings a few years ago, says John Morency, Gartner's DR analyst. Now the market has ballooned to more than 100 vendors, ranging from startup pure-play DRaaS vendors to legacy DR heavyweights.

Morency estimates DRaaS is a $425 million to $450 million industry, still only a fraction of the overall $3.5 billion DR market. But Dines characterizes DRaaS as "a pretty big game changer that's shaking up the industry. It's a paradigm shift offering better recovery objectives for the same or less as traditional or outsourced models."

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