Introduction

In today’s fast-paced digital landscape, businesses are increasingly reliant on technology to operate efficiently and effectively. However, with this reliance comes the risk of downtime and data loss due to unexpected disasters or disruptions. This is where Disaster Recovery as a Service (DRaaS) comes in – a cloud-based solution designed to ensure business continuity in the face of adversity. But what is the return on investment (ROI) of DRaaS, and how can businesses unlock its value? In this article, we’ll delve into the world of DRaaS and explore its benefits, costs, and ultimately, its ROI.

Understanding the Benefits of DRaaS

Before we dive into the ROI of DRaaS, it’s essential to understand its benefits. DRaaS provides businesses with a comprehensive disaster recovery solution that includes:

  • Data Protection: DRaaS ensures that your data is backed up and protected in the cloud, minimizing the risk of data loss in the event of a disaster.
  • Business Continuity: With DRaaS, businesses can quickly recover from disasters, minimizing downtime and ensuring that operations continue uninterrupted.
  • Scalability: DRaaS solutions are highly scalable, allowing businesses to easily increase or decrease their disaster recovery capacity as needed.
  • Cost Savings: DRaaS eliminates the need for on-premise disaster recovery infrastructure, reducing capital and operational expenses.

According to a study by Gartner, the average cost of IT downtime is around $5,600 per minute. With DRaaS, businesses can minimize this cost by quickly recovering from disasters and reducing downtime.

The Cost of DRaaS

While the benefits of DRaaS are clear, its cost is a crucial factor to consider. The cost of DRaaS can vary depending on several factors, including:

  • Data Volume: The amount of data being protected and stored in the cloud affects the cost of DRaaS.
  • Recovery Time Objective (RTO): The time it takes to recover from a disaster affects the cost of DRaaS.
  • Service Provider: Different service providers offer varying pricing models and discounts.

On average, the cost of DRaaS can range from $10 to $50 per month per GB of data protected. However, this cost can be offset by the savings achieved through reduced downtime and improved business continuity.

Calculating the ROI of DRaaS

Calculating the ROI of DRaaS requires considering both the benefits and costs of the solution. Here’s a simple formula to calculate the ROI of DRaaS:

ROI = (Gain from DRaaS - Cost of DRaaS) / Cost of DRaaS

According to a study by Forrester, the average ROI of DRaaS is around 300%, with some businesses achieving an ROI of up to 500%.

Case Study: XYZ Corporation

XYZ Corporation, a mid-sized retail business, implemented a DRaaS solution to protect its e-commerce platform. Prior to implementing DRaaS, the business experienced an average downtime of 2 hours per month, resulting in lost sales of $10,000. With DRaaS, the business was able to reduce its downtime to 15 minutes per month, resulting in a cost savings of $9,400 per month. The cost of DRaaS was $1,500 per month, resulting in a net savings of $7,900 per month.

Conclusion

Disaster Recovery as a Service (DRaaS) is a cloud-based solution that provides businesses with a comprehensive disaster recovery solution. While the cost of DRaaS is a crucial factor to consider, its benefits, including data protection, business continuity, scalability, and cost savings, make it an attractive solution for businesses of all sizes. By calculating the ROI of DRaaS, businesses can unlock its value and achieve significant cost savings.

We’d love to hear from you! Share your experiences with DRaaS and its ROI in the comments below.

Sources:

  • Gartner: “The Cost of IT Downtime”
  • Forrester: “The ROI of Disaster Recovery as a Service”
  • Forrester: “Disaster Recovery as a Service: A Study of the Market and Its Benefits”