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 The
use of third party suppliers for disaster recovery services is widespread,
but what should be included in such a contract to ensure that the
DR service meets your needs and performs as expected during a crisis?
Angus Stormonth Darling explains.
Caveat emptor. Let the buyer beware. Sound
advice for any purchase, but in the special circumstances of disaster
recovery, it becomes even more important. When a company purchases
disaster recovery, it essentially buys a promise of success. It
buys more than insurance, but a guarantee that the company will
survive a disaster. There are no half measures in disaster recovery
– upon invocation the client needs to be absolutely certain
that well-oiled processes will kick-in, resulting in a quick, efficient
and effective recovery within the required recovery time objective.
There are no second chances; there is no room for failure. However,
the responsibility for success does not lie just in the hands of
the DR supplier. There is much that the purchaser can do that will
increase the probability of a successful invocation outcome.
SHOP AROUND
The first rule of purchasing a disaster recovery service is to ‘shop
around’. The market is reasonably competitive, even for specialist
services, and there is wide variation in the pricing structures
and value for money offered by suppliers. Take a leaf out of the
local authority book and look for the ‘best value’ contract,
i.e. the best combination of price, service and added value. Any
money spent on a system that has flaws is a waste.
TAKE UP TRADE
REFERENCES
Any respectable supplier will be able to provide you with a list
of trade references – previous and existing customers who
will be willing to give testimony to the abilities of the supplier.
It is important to take up as many trade references as is feasible.
Bear in mind that the company will have chosen it’s best customers
to provide references but, even so, probing questions can often
identify any potential problems with the supplier’s service.
Don’t rely on written questionnaires; instead make a personal
phone call. Many people are more likely to provide honest answers
in an ‘off the record’ conversation than if asked to
commit their thoughts to paper. Also, people are more likely to
provide rapid unconsidered answers, which may be more truthful than
considered statements in a questionnaire.
AUDIT THE SUPPLIER’S
FINANCIAL SITUATION
It is essential that your DR supplier is financially stable. Most
disaster recovery contracts are long-term dynamic arrangements and
the buyer needs to be confident that the supplier will still be
in business at the end of the contract period and won’t suddenly
go ‘belly up’ leaving the purchaser’s business
exposed and without disaster recovery protection. It is also important
that the supplier has the ability to continue to invest to accommodate
the changes that are inevitable over a long term period. The supplier
must have sufficient financial resources to fund the contract and
the purchaser should satisfy him / herself as to the ownership,
provenance and quality of the assets allocated to the contract.
MULTIPLE USE OF EQUIPMENT
Depending on the type of DR service being purchased, the supplier’s
equipment or facilities will probably be allocated to multiple customers.
The industry term for this is ‘syndication’. The main
issue here is to deal with a supplier that has an open and transparent
syndication policy. This will help you avoid a situation where you
are competing with another company to use the same resources during
a disaster, with the inevitable delay and confusion that this scenario
would cause.
Questions to ask include:
• How many other companies are syndicated to the equipment
and facilities that you will be using?
• Where are these companies located? If they are close to
your own location both companies could easily become caught up in
the same disaster, resulting in an inevitable clash.
• What is the invocation and testing history of these companies?
If they regularly use the facility that you are syndicated to then
the potential for a clash is greater.
INSPECT
Inspection of the disaster recovery equipment and facilities that
you will be using is important. A visit might throw up issues and
problems that the supplier’s sales team may have ‘glossed
over’. Many suppliers arrange roadshows and facility open
days; these are useful but be aware that they are designed to show
the company at it’s best. You will get a better impression
of the real company if you visit on a normal working day.
CULTURAL FIT
Should the worst happen and the DR service need to be invoked, you
will be working with your chosen supplier in a high stress disaster
situation. In this scenario you need to be comfortable with the
people that you will be working closely with. Ask to meet the technicians
and other employees of the DR supplier who will support your invocations
and tests. This will help you determine whether the supplier employs
people you can engage with and work with as a team.
Confirm exactly which machine operators will
be used in the initial stages of an invocation. Does the supplier
have immediate access to its own skilled staff, or would you have
to use your own employees? If the latter is the case, check that
your insurers will allow this and that there are no limitations
in the contracts of employment with your staff. Where physical materials
are required, determine who will be responsible for stock control
and delivery.
DESIGN A WATER-TIGHT
CONTRACT
The contract is everything. Leave nothing to chance – dot
every i and cross every t to ensure that there is no room for ambiguity.
Spell out the exact service you are purchasing, including:
• Testing access and frequencies;
• Acceptable syndication levels;
• The process for determining who will get first use of a
facility should it be ‘double-booked’;
• Recovery time objectives, and penalties for failing to meet
these;
• A service level agreement.
Don’t forget to read the small print!
AIM FOR WIN-WIN
It is wise to try and ensure that your contract is ‘win-win’
– i.e. that it is the best possible deal both for the supplier
and the purchaser. Contracts which are biased in favour of the customer
may seem at first sight to be an attractive option, but often this
will result in the supplier being tempted to cut costs and corners
in an attempt to make the contract more profitable.
CONCLUSION
The benefits of taking a rigorous and professional approach are
great. You will be able to rest-easy, knowing that every effort
had been made to ensure that the DR supplier will perform as expected
during any invocation. The disaster recovery contract is one of
the most important agreements your company will make; one day it’s
survival may depend on it. Can you afford to take short-cuts when
so much is at stake?
Angus Stormonth Darling is managing
director of Critical Mail Continuity Services (CMCS) Ltd, a company
that has been providing specialist print and mailing disaster recovery
services for five years. Contact +44 1386 565700 or email at angus@cmcsdr.com
•Date:
3rd March 2003 •Region: Worldwide •Type:
Article •Topic: Disaster
recovery
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