Published on November 16, 2023, 4:05 pm

As cloud computing continues to gain widespread adoption, companies are facing the risk of downtime incidents that can have disastrous consequences. According to Gartner, the average cost of IT downtime is a staggering $5,600 per minute. These downtime incidents not only result in financial losses but also pull IT personnel away from their regular work, causing further interruptions.

To mitigate the risks associated with cloud outages and platform failures, many businesses have turned to cloud downtime insurance. This type of insurance provides coverage for short-term disruptions, such as network crashes or cloud outages lasting up to 24 hours. It’s no surprise that this insurance has gained popularity in recent years, considering the frequency of such incidents. On average, one of the three major public cloud providers (Microsoft Azure, AWS, and Google Cloud) experiences an outage lasting at least 30 minutes every three weeks.

While cloud downtime insurance can provide some level of protection for businesses, it is not a complete solution. It’s important to note that this insurance cannot guarantee uninterrupted operations during a period of downtime. While it covers short-term losses incurred due to the outage, it does not address other critical aspects such as damage to brand image, loss of goodwill, and customer loyalty when a company fails to deliver its services.

Instead of solely relying on cloud downtime insurance, organizations should adopt the following strategies to ensure business continuity in the face of unexpected events:

1. Have a sound recovery plan: Simply moving your data to a cloud provider does not guarantee its safety and security. Last year’s fire incident at OVHcloud’s data center resulted in massive amounts of customer data loss for various organizations. Implementing a robust disaster recovery plan is crucial and involves more than just backing up data. Regularly testing the recovery plan, simulating disruptions, and fixing any issues are essential steps toward ensuring quick data recovery during emergencies.

2. Implement your backup and recovery solution: Cloud security is a shared responsibility between the cloud provider and your organization. While providers secure their infrastructure and services, securing operating systems, platforms, and data falls under your responsibility. Many cloud providers recommend using third-party software to protect data. Implementing a reliable cloud backup and recovery solution can comprehensively secure your data and give you the necessary control. Look for a solution that automatically backs up information every 15 minutes, offering multiple points of recovery and round-the-clock access.

3. Be proactive: be data resilient: Many companies fail to test their data recovery plans or even have one in place. Being proactive is key to maintaining business continuity during disruptions. Establishing a data resilience strategy based on recovery point objectives (RPOs) and recovery time objectives (RTOs) ensures ongoing operations in case of disruptions. Regularly testing these objectives will verify if they can be achieved. Your RPO determines how frequently you back up your data and your tolerance for data loss, while the RTO measures the acceptable downtime before severe damages occur.

In conclusion, while cloud downtime insurance can offer added protection for businesses, it should not be considered a substitute for comprehensive backup and recovery efforts. To ensure uninterrupted operations during periods of downtime, organizations should take a proactive approach by implementing sound recovery plans, robust backup and recovery solutions, and testing their data resilience strategies regularly.

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