High-Tech, Low-Profile:
The Business Continuity Industry Guards the Information Age

July 30, 2003

Winston-Salem, N.C. -- During Andy Brown’s tenure at IBM, a contractor accidentally tripped the Emergency Power Off (EPO) switch during routine maintenance. “The whole computer room was off, and we were down about three days,” he said. Today, Andy is a co-founder of DataChambers, a business continuity company in Winston-Salem. “Most of the time, it’s just a simple accident that causes a costly interruption in business, but unfortunately, only ten percent of companies in the U.S. are prepared.”

Data Chambers is a business continuity company that specializes in data storage, network and monitoring solutions, dedicated and managed hosting solutions, co-location, workforce continuity work space, professional consulting and records management. DataChambers also provides the amenities needed for companies to conduct their required data security and recovery testing.

According to the Disaster Recovery Journal (DRJ), “The typical everyday IT emergencies don’t make very suspenseful movie plots, but these seemingly mundane incidences have the potential of placing an enterprise into Chapter 11.”

The following statistics were reported by articles appearing on globalcontinuity.com (GCC):

• The number of reported computer security incidents has grown from 6 in 1988 to over 73,000 by September, 2002 (CERT/CC).
• Internet-based attacks cost US companies over $350 billion annually.
• According to GCC surveys:
  1. Eighty percent of companies admitted to having information losses.
  2. Nearly one-third of businesses reported activating their business continuity plans.
  3. The most common crises reported were not terrorism or warfare, but flooding, power outages and systems failures.

Education is Key

So why do only 10 percent of companies engage in business continuity planning? “It’s the big corporations that are prepared because they’ve most likely dealt with disasters or emergencies before and know how to respond,” says Bruce Brown, also a co-founder of DataChambers. “However, 90 percent of companies in the U.S. have fewer than 100 employees, and they need to become more aware of how to protect their resources and information. A lot of what I do is education. These small- to medium-sized companies don’t realize that cost-effective business continuity services pay off.” Indeed, the DRJ reported that “one cent of data backup is worth $2,500 of data re-entry.”

Many companies do not know what business continuity is all about. According to GCC, business continuity management is defined as, “the processes, procedures, decisions and activities to ensure that an organization can continue to function through an operational interruption.” It’s the job of business continuity companies to protect cyberspace and a company’s operational integrity. The world is becoming increasingly technology-driven, to the point that data and information are many companies’ core products. Business is also becoming more inter-connected as more people leverage the Internet and perform business transactions via cyberspace.

The History of Business Continuity

GCC explains that the theoretical principles of “continuity” were grounded in the military: It meant that a rapidly changing situation like warfare demanded quick response and recovery. The business world began adopting the continuity concept during the 1960s. As a result of the Korean and Vietnam Wars, businesses realized that casualties could easily bleed into the professional scene. The first disaster recovery plans included off-site storage of hard-copy records.

By the early 80s, disaster prevention planning became paramount, and the digital revolution began. Information literally leaped off the hard-copy page and landed on circuits. Safeguarding information meant keeping copies of magnetic media tapes. But the Y2K bug and September 11, 2001 forever highlighted the importance of business continuity planning. One 9/11 corporate victim, Cantor Fitzgerald, posted strong financial results despite the disaster because it had redundancy centers for all its on-line transactions.

Today, e-vaulting information ensures that clients’ data is continuously updated, including timed back-ups conducted at an off-site, secure, and often undisclosed location. “That’s why we consider DataChambers as high-tech, but low-profile,” said Bruce. “Most business continuity companies don’t put their names on the outside of their buildings or disclose their addresses. They operate within a very secure environment that’s up to par with military standards. Ultimately, it’s all about visibility. We don’t want to make ourselves, and therefore our clients’ information, vulnerable targets.”

The “Business” of Business Continuity

The business continuity field is an “economic diamond” slowly being excavated by entrepreneurs like the Browns. “There is a huge need for these services, particularly in the Carolinas. It’s a huge, untapped market,” said Andy. And clients shouldn’t trust just anyone with their data and information.

“In a business like this, clients demand security and honesty from someone they know, trust and respect,” said Bruce. “Companies should be careful when shopping around for the right continuity service provider. Make sure they are reliable, dependable and follow high security standards.”

DataChambers has a carrier hotel for secure information transmission, web-hosting, data back-up and continuity seating, all under one roof. DataChambers is one of the few companies in the country to offer the entire spectrum of services related to business continuity. “Other business continuity companies offer some of these services, but DataChambers is unique because our services are located within a facility that’s like a fortress,” said co-founder and President of DataChambers Lawrence Boening. “Our competition doesn’t have continuity seating plus a carrier hotel within a nuclear fallout shelter.”

Salem Health Solutions, a healthcare information management company, was attracted to DataChambers because of its security, redundancy and hardened, lead-lined facility. President and CEO Geoff Wood said, “We chose DataChambers as our co-location data center because it’s cost-effective. It isn’t financially feasible to outfit your own data center or to provide security and staffing around the clock, all year.” The DRJ agrees, stating that the cost of data storage equipment is only about 10 percent of the total costs of data storage. Personnel costs make up the other 90 percent.

Location is also important in choosing a business continuity partner. Geoff stated, “Because Salem Health Solutions is based in Winston-Salem, we wanted to co-locate in Winston-Salem as well. DataChambers serves the needs of research and medical institutions in a city that’s emerging as a cutting-edge technology center. We’re glad they’re here.”

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