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As long as your production systems and essential functions are working fine, it’s a success for your department. But, at a given point in time, if an unacceptable disruption to your operations occurs, it poses a significant threat. Often, with little or no warning, disasters do occur unexpectedly. According to Statista, the average cost of server downtime can range between $301,000 and $400,000 per hour. This urges you to conduct risk calculations and establish recovery priorities, an essential element of both the Business Continuity and Disaster Recovery (DR) planning process.
In the event of a major disruption, your system needs to be recovered, and you cannot ignore it. Two critical decisions that reflect your company data loss tolerance during a potential disruption are the RTO vs RPO aka Recovery Time Objective (RTO) and Recovery Point Objective (RPO). The RTO vs RPO objectives have to be set in line with business continuity. These parameters are essential business metrics that play a key role in determining the frequency of scheduling backup runs.
While RTO vs RPO in their meanings are related, these two components of the company’s Disaster Recovery Plan and Business Continuity Strategy differ in their core objectives, purpose, data priority, and usage. During a disaster event, every minute of downtime can spell thousands in lost revenue and slowly diminish customer confidence in your business.
Henceforth, to build a solid disaster recovery RTO vs RPO strategy, it’s crucial to understand what is RTO, RPO, and their differences. With RTO & RPO values, you can develop a solid disaster recovery and business continuity plan that outlines the risks, recovery needs, and backup solutions that your enterprise should put together in place.
The target time taken by the organization to recover its applications and processes after a disaster occurs is known as the Recovery Time Objective (RTO). The recovery timeline is a crucial parameter to determine the downtime tolerance level of a business. The RTO answers the question, “How long can an application be down to get up and running again after a disaster without incurring significant business loss and customer anger”. This key metric can help you calculate the duration of time between recovery and acceptable data loss.
However, the RTO objective is not about just determining the duration between the onset of the disaster and recovery. It also accounts for defining the recovery steps that the IT teams should undertake to restore their applications and data. If IT has invested in failover services to recover high-priority applications, you can achieve RTO in mere seconds.
To calculate RTO based on the priority of business applications, it’s vital to make your RTO as accurate as possible.
To put it simply, Recovery Point Objective (RPO) is the amount of data the business can afford to lose and continue to function without causing any significant damage to the business. RPO ensures business continuity with an acceptable duration of data loss tolerance during downtime. Defining the amount of time “acceptable” by your company is extremely crucial in your business continuity plan. The longer the RPO, the more potential for data loss due to extended downtime. RPO seeks to answer the question, ” How much data can the business afford to lose?” In other words, RPO determines the age of data that you must recover to resume business operations to normal.
RPO sets the stage for determining your disaster recovery (DR) plan. Therefore, it’s significant to assess the criticality of data to decide which applications, processes, or information need to be recovered. Based on the level of criticality, you should restore the data. Since RPO is listed in the specified timeframe of the last backup and the type of backup, RPO entirely depends on your backup system.
Data backups with individual RPO can be typically automated every hour, 24 hours, 12, to 8 to 4 hours, or maybe every 10 minutes. This means for a 1-hour RPO, you can lose one hour’s worth of data, or if you are okay to lose 24 hours worth of data, so your RPO is set to 20 hours.
While maintaining a near-zero RPO is possible through failover/failback strategies, that’s still an expensive undertaking. Based on the priority of your mission-critical applications, you can schedule the RPO to balance your budget:
Realistically, a solid understanding of RTO vs RPO can narrow the knowledge gap and help you set your objectives by budget, resources, and of course, application priority. Take a look.
Keeping the operations highly available and accessible 24/7/365 is every business’s dream. However, calculating RTO vs RPO requirements might involve considerable risks of data loss and the costs of mitigation. Besides, during a longer period of downtime, if RTO and RPO objectives are not realistic, this might hit your business really hard. The result? Lost reputation, customer trust, and hundreds of lost transactions! Therefore, choosing the right recovery partner is critical to meet your recovery objectives. This is where you need to evaluate the cost-benefit equation by improving the RTO and RPO metrics as a part of your disaster recovery plan.
As long as your business applications and systems are working, it’s a success for your department. But, if at a given point, an unacceptable disruption occurs, it might pose a significant threat. Often, with little or no warning, disasters do occur unexpectedly. This urges you to conduct risk calculations and establish recovery priorities, as an essential element of the Business Continuity and Disaster Recovery (DR) planning process.
During a disruption, your system must be recovered instantly without any significant business loss. RTO vs RPO aka Recovery Time Objective (RTO) and Recovery Point Objective (RPO) are the two critical parameters through which you can estimate how much data loss your business can endure. You must align the RTO vs RPO objectives to recover mission-critical applications in a business-saving time frame. If recovery values are unrealistic, the risk and expense of meeting the DR goal might take a toll on your business. Hence, RTO vs RPO are crucial business metrics that play a key role in determining business continuity and disaster recovery in the long run.
You might think that RTO vs RPO metrics are related. However, these two components of the Disaster Recovery Plan differ in their core objectives, purpose, data priority, & usage. During a disaster event, every minute of downtime can spell thousands in lost revenue. In the worst case, it will diminish customer confidence in your business. Henceforth, to build a solid RTO vs RPO strategy, it’s crucial to understand RTO vs RPO differences. If you set RTO & RPO values right, you can develop a solid disaster recovery and business continuity plan that outlines the risks, caters to recovery needs, and offers backup solutions to restore data at any time.
Recovery Time Objective (RTO) is the target time your organization can take to recover its applications and processes after the disaster. The recovery timeline is a crucial parameter to determine the downtime tolerance level of a business.
The RTO answers the question, “How long an application can be down after a disaster event? RTO also answers how long will it take to get up and running without significant business loss. Using this key metric you can calculate the duration of time between recovery and acceptable business data loss.
However, the RTO objective is not just about determining the duration between the onset of the disaster and recovery. You also need to define the recovery steps that the IT teams should undertake to restore its applications and data. If IT has invested in failover services to recover high-priority applications, you can achieve RTO in mere seconds. If you have set the RTO time frame as 2 hours, you must bring back business operations to normal within 2 hours in case of a disaster event.
To set your RTO goals accurately, you must first define high-priority business applications based on a three-tier DR model:
Tier-1 | Near zero for mission-critical applications | To achieve near-zero RTO, the applications must switch to failover capability. |
Tier-2 | Business-critical applications requiring 4 hours RTO | To achieve 4 hours RTO, you must perform an on-premises recovery at least every 4 hours. This will ensure data availability for your business. |
Tier-3 | Non-critical applications requiring RTO of 8 hours | To achieve an RTO of 8+ hours, you can restore non-essential applications by using an existing backup solution. |
Let’s take an example of a business continuity scenario for a banking system during a disaster event:
Now that you know how to plan the RTO objectives for your business applications, let’s understand what RPO is.
Recovery Point Objective (RPO) is the maximum amount of data loss that your business can afford without any significant damage. You must define the amount of time “acceptable” by your company in your business continuity plan. The longer the RPO, the more the data loss due to extended downtime. RPO seeks to answer the question, “ How much data can the business afford to lose?” In other words, RPO determines the age of data that you must recover to resume business operations back to normal.
RPO sets the stage for determining a disaster recovery (DR) plan. The first step is to define the RPO timeframe that determines the backup frequencies. The idea is to ensure that there’s always a backup available before the disaster hits. However, you must assess the value of the data that needs to be recovered. Based on the level of data criticality, you need to set the RPO for continuous backup. It’s evident that businesses lose data during downtimes. But, by defining the RPO timeframe, you can set the frequency of data backups to lose the least amount of data which is fairly tolerable.
You can also automate data backups with individual RPOs. This means you can set RPOs hourly, 24 hours, 12 hours, 8 to 4 hours, or every 10 minutes. Thus, for a 1-hour RPO, the business can lose one hour’s worth of data. Again, if you are okay to lose 24 hours’ worth of data, you can set RPO to 20 hours.
Although maintaining a near-zero RPO is possible through failover/failback strategies, that’s still an expensive undertaking.
For high-priority applications, it’s important to determine how much data the organization can afford to lose.
A solid understanding of RTO vs RPO can help you achieve your recovery goals. Take a quick look at key points of differences between the RTO and RPO.
Keeping the business operations online 24/7/365 is every business’s dream. However, recovery time and point objectives (RTO vs RPO) are not one-size-fits-all. During downtimes, if RTO vs RPO objectives are not realistic, this might hit your business hard. The result? Lost reputation, customer trust, and hundreds of lost transactions! Therefore, choosing the right recovery partner is critical to meet your recovery objectives. This is where you need to evaluate the cost-benefit equation by improving the RTO and RPO metrics as a part of your disaster recovery plan.
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If you’re still unsure, you can also talk to a data protection expert to get a free 30-minute consultation before choosing your enterprise data protection solution.
Want to gain more insights on how we can help you meet your RTO and RPO goals to achieve business continuity? Contact us for more information or simply visit our DR solution page.