Cloud-based recovery is being rapidly adopted, but should your company go all in? The cloud is about IT transformation that depends on two important factors: clarity of purpose and disciplined execution. Don’t begin your cloud-based recovery journey without a reliable roadmap that incorporates how the switch may affect the bottom line.

Below are cost implications to consider:

Potential Savings with Cloud-Based DR Adoption

Compared to traditional DR approaches, DR in the cloud can potentially deliver significant savings. Even assuming parity between the costs of running a virtual machine (VM) workload on-premises and the cloud, the cloud is financially beneficial since you only pay for what you use.

Organizations also can maximize savings from cloud DR adoption by waiting for refresh cycle opportunities and employing on-demand capacity rather than reserved capacity for noncritical workloads.

Don’t Devalue IT Investments for the Traditional DR Approach Too Early

In many instances, enterprises will have significantly invested in hardware and colocation commitments to facilitate their existing do-it-yourself DR strategy. Unless the equipment and facility space can be repurposed, funds could be wasted. By aligning major moves to cloud DR with hardware refresh cycles, IT departments can avoid this problem.

Use this time to prepare for wide-scale adoption. Your IT department can gain expertise and experiment with cloud DR for nonessential workloads before the next hardware refresh.

Cloud Payment Models

Two broad categories to pay for cloud capacity are commonly used:

On-Demand Capacity: The user only pays for ‘reservation’ costs which are significantly lower than live resource costs. For example, when an on-demand VM is used for disaster recovery, the client is charged for the time that the VM is running during the outage. The biggest disadvantage is there might not be enough spare capacity at the precise moment needed during an outage.

Reserved Capacity: The user pays for capacity for a set period of time, such as one year. With reserved capacity, the cloud provider guarantees that the capacity is available when you need it. However, you pay for the full period regardless of how much time the VM actually runs.

Enterprises can achieve significant DR savings by taking the low risk of using on-demand rather rather than reserved capacity for most of the workloads migrated to the cloud.

Executing a Hybrid Cloud Strategy

Migrating workloads to the cloud typically takes place in stages. Unless your resilience strategy dovetails with your IT transformation strategy, your risk may go up instead of down. Cloud DR adoption does not require an all-or-nothing approach. Many organizations use a hybrid cloud strategy.

Recovery Point can help you decide which components of an application are suitable for cloud DR and which elements shouldn’t go to the cloud. We offer a portfolio of cloud planning, migration, operations and management services that define your plan and reduce risk.


In addition to potential cost savings, another factor driving interest in cloud-based recovery is the pressure to reduce recovery time objectives (RTOs) for applications. More applications are expected to meet RTOs of four hours or less. Recovery Point specializes in creating technology-agnostic solutions designed to meet your specific RTO/RPO requirements.

Let Recovery Point help you build the cloud platform you need to innovate and accelerate business results and create a competitive advantage. Our experts will evaluate, architect, migrate and manage all aspects of your cloud-based recovery journey. Call 877-455-4333 to get started.

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