Royal Bank Of Canada Takes Business Continuity To The Next Level - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Hardware & Infrastructure
News
12/24/2003
12:07 PM
50%
50%

Royal Bank Of Canada Takes Business Continuity To The Next Level

In building a secondary data center within driving distance of the first, the company is accounting for the fact that individuals don't want to be far from home during a crisis.

Once a company realizes that weather, a blackout, or a virus could shut down operations at any time, it's time to measure how long the business could be down before financial consequences are calamitous.

The Royal Bank Of Canada serves its top customers from a division in hurricane-prone Florida. RBC assessed the risks faced by the division and calculated that the Florida operation could be inactive for two hours before incurring millions of dollars in losses per hour.

So this coming year, RBC will create a mirrored data center 60 miles from the original center. The failover center will continually replicate data and take over if worse comes to worst. The bank hired Gulfcoast, a subsidiary of IT-portfolio-management firm Relational Funding Corp., to help make the strategy and technology choices.

Execs decided that the second data center had to be within driving distance, but also had to be somewhere that didn't normally experience the same weather patterns as the primary data center.

The driving distance part of the equation was important to ensure that employees would be able to make it to the center. "The bank looked at stats from Hurricane Andrew, showing 70% of those who were supposed to move to alternate locations were not willing to go" during such an event, says John Medaska, VP of business development at Gulfcoast. "If the house is destroyed and your wife and children are now homeless, you won't leave them."

Medaska says the bank saved a ton of money by buying refurbished systems for the secondary center. For example, RBC paid $36,000 for a used IBM iSeries server that would have cost almost three times as much new. More importantly, and surprisingly, the bank expects to save money operating the second data center on its own over using a third-party disaster-recovery service from IBM or SunGard.

"The bank expects savings of 10% to 12% over SunGard for the 36 months of the contract," Medaska says. He says that at the three-year mark, the bank's costs for infrastructure and personnel to operate the center should be less than what SunGard had proposed when the bank approached it about a possible contract.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Slideshows
What Digital Transformation Is (And Isn't)
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/4/2019
Commentary
Watch Out for New Barriers to Faster Software Development
Lisa Morgan, Freelance Writer,  12/3/2019
Commentary
If DevOps Is So Awesome, Why Is Your Initiative Failing?
Guest Commentary, Guest Commentary,  12/2/2019
Register for InformationWeek Newsletters
Video
Current Issue
The Cloud Gets Ready for the 20's
This IT Trend Report explores how cloud computing is being shaped for the next phase in its maturation. It will help enterprise IT decision makers and business leaders understand some of the key trends reflected emerging cloud concepts and technologies, and in enterprise cloud usage patterns. Get it today!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll