Here's how your business can survive a disaster By Ahmed ElAmin If a disaster -- such as a major hurricane -- hits your company do your employees have a place to bunker down and continue doing deals? Probably not according to studies in the US by Comdisco Inc. and locally by Paragon Bermuda Ltd.

The two companies and Cable & Wireless have forged a partnership to develop a commercial Business Continuity Centre out at the former St. David's baselands.

The 30,000 sq. ft. building under consideration is big enough to house key chunks of every business in Bermuda if necessary, according to Paragon consultant Paul Ryan.

Many companies don't have a plan guiding employees about what to do in case of even a small scale emergency -- which can effectively cripple a business just as well as a large one.

Paragon polled 50 large companies in Bermuda and found that over half didn't have a business continuity plan. The poll of clients is backed up by a Comdisco survey in the US which found of 200 Fortune 1000 companies, 64 percent did not have backup proceedures for data. Only one in two had formal recovery plans.

Both companies do business in disaster recovery so they are of course interested in the subject. Providing disaster recovery advice and services is big business in the US, growing by 40 percent last year. Comdisco runs about 50 recovery centres around the world. If it's cheaper to set up data recovery away from Bermuda, the partnership will use Comdisco's facilities elsewhere.

Dublin is being developed for companies concerned about the tax implications of setting up data recovery in North America.

Cable & Wireless is in there to provide the high speed connections and back up lines. Comdisco is also involved with Quantum Communications Ltd. in setting up the high-speed fibre optic network on the Island. Cable & Wireless owns about 35 percent of Quantum, which is going after lucrative data and voice traffic in Hamilton and has set up a high-speed fibre optic network. Quantum's majority owner is Bermuda Electric Light Co. Ltd. Get the connections? "Companies are increasingly reliant on technology to run their business -- technology meaning computer and telephone systems which are both critical to their ability to service their clients,'' Mr. Ryan said. "In spite of that, very few have analysed their requirements, developed a business continuity plan and made arrangements for a site at which to test and execute their plan in the event of a disaster.'' While information is key to continuing doing business, some companies think that keeping a backup tape of their data in some other location is enough.

After all that's what many insurance companies now require from their clients.

"What use is a tape if you can't get to the systems?'' Mr. Ryan said.

About 50 percent of companies which suffer a down time of more than three days go out of business within a year, he said. In many cases the failure is not as a result of lost revenue, but due to customers being alerted that the company had no contingency plan in place. The customers then look for a more reliable supplier.

The partnership is currently lining customers up before developing the business recovery centre. The two-storey building under consideration housed the Navy's electronics relating to aviation and has a static resistance floor, backup generators and an uninterrupted power source. A perfect place to bunker down during a storm.

Mr. Ryan, who has been constructing disaster recovery plans for 20 years, thinks the site is enough to house every business in Bermuda the morning after. Typically only ten to 15 percent of employees need to be "recovered'' in the event of a disaster he says.

Usually at first a company thinks it must save everything. Often company politics plays a part in who is identified as key to continuing the business under dire circumstances. An insurance company wanted every one of its 130 people recovered until Mr. Ryan told them it would cost millions to implement.

He cut them down to 30 key people and an affordable plan.

"The concept of recovery is that it's scalable,'' he said. "It's not possible to set everybody up.'' For now the partnership will use Cable & Wireless' Devonshire site for disaster recovery. Property catastrophe reinsurer Renaissance Re has become the first customer. Paragon has set up a mirror site where Renaissance's data and systems are backed up at four computer servers there. A high speed circuit connects Renaissance's headquarters on East Broadway with the Devonshire servers. Then if Renaissance's servers go down during key policy renewal periods, the underwriters can still analyse and make the deals using their fancy catastrophe modelling software the company developed for $8 million.

Just as important, employees will have a 75-page guide which lays out the procedures for getting back to work. He is drawing up a plan by first assessing the impacts various disasters will have on a company. These include fire, flood, and employee sabotage of computer systems.

After identifying the key business areas, a typical plan outlines who needs to be recovered, and what resources they need to do their jobs. Then it's a matter of setting up a site where the business can continue and who's responsible for getting employees there.

Out of 40 employees, Renaissance identified five people who would be needed the day after headquarters goes down. By day five the company would still only need nine employees to continue the business.

"You can't last indefinitely like that,'' Mr. Ryan said. "The object is to keep the deals going.'' At the proposed disaster centre, companies will have a choice of paying for guaranteed space, or of sharing with others on a first come, first saved basis. Mr. Ryan believes most companies will contract for a blend of the two depending on their level of risk tolerance.

Apart from self-interest in the development of the centre Mr. Ryan thinks the site will help attract international business to Bermuda.

"To say the Island has one of these facilities and has recognised the need for one will help draw business here,'' he said.

*** Tech Tattle is a weekly column which focuses on technological developments and computer industry issues. If you have any ideas for topics please call Ahmed at 295-5881 or at home 238-3854.