This latest Regus survey, which interviewed over 12,000 senior business people in 85 countries, also shows that firms are more likely to have an IT disaster recovery function to help them recover operations within 24 hours than to be able to provide alternative workspace for their staff, should they be unable to access their usual work premises due to a disaster More than half of firms, however, report that they would invest in affordable alternative workplace recovery if the service were suitably priced. Although larger firms are better prepared for disaster recovery (DR) than smaller companies, 26% of larger corporates still remain without a DR facility for their IT systems, and 40% have no workspace DR facility. It is the conclusion of this study that, given the widespread availability and relative low cost of IT and workspace DR, those organisations with none in place are potentially taking an unnecessary risk with their shareholders assets.

1. Half
prepared?
A global study into corporate preparedness for
disaster recovery and business continuity
November 2011

2. Half prepared?
The latest global business survey from Regus reveals
that companies across the world are almost evenly
split between those that do have a disaster recovery
plan in place for IT systems or workspace and those
that do not. The main reasons for failing to have such
a plan in place is reported to be the perceived high
cost, although national variations are significant.
This latest Regus survey, which interviewed over 12,000 senior business people
in 85 countries, also shows that firms are more likely to have an IT disaster recovery
function to help them recover operations within 24 hours than to be able to provide
alternative workspace for their staff, should they be unable to access their usual work
premises due to a disaster More than half of firms, however, report that they would
invest in affordable alternative workplace recovery if the service were suitably priced.
Although larger firms are better prepared for disaster recovery (DR) than smaller
companies, 26% of larger corporates still remain without a DR facility for their
IT systems, and 40% have no workspace DR facility. It is the conclusion of this study
that, given the widespread availability and relative low cost of IT and workspace DR,
those organisations with none in place are potentially taking an unnecessary risk with
their shareholders assets.
Half prepared? | November 2011 | Page 2

3. Management Summary
• Natural disasters, the rising costs of downtime and the increasingly mission
critical character of applications have focused company attention towards
disaster recovery solutions - yet independent research commissioned by Regus
reveals that globally 45% of firms still have no disaster recovery facility for their
IT systems.
• A third of respondents (33%) report that the perceived costs of disaster recovery
are prohibitive and more than half (55%) agree that most firms like theirs would
buy the option to access a workspace disaster recovery facility if that option
were priced at around $100/month.
• It may be the case that economic pressures are encouraging management to
cut costs by reducing spend on DR. However, given the widespread availability
of low cost IT system and workspace disaster recovery services and facilities
in today’s marketplace, this may be an area which shareholders and insurers are
encouraged to investigate in the light of this survey’s findings.
• Companies that do have disaster recovery are more likely to have computing
systems up and running within 24 hours (55%), than provide an alternative
workspace for staff within the same time frame (45%).
• Some interesting national differences emerge. In particular, in Japan only 37% of
firms have a disaster recovery facility for their IT systems and just under a third
(32%) have a workspace disaster recovery.
• More companies in Australia (70%) and Germany (69%) and the UK (67%) are
prepared for an IT outage than the global average (55%).
• Less than half of consulting companies (46%) have workspace disaster recovery,
compared with 57% of financial services companies.
Half prepared? | November 2011 | Page 3

4. Introduction
Disaster recovery is maturing from being regarded
as an additional safety net to a must-have business
critical function and reports indicate that the global
disaster recovery / business continuity market is set to
reach $39 billion in 2015.1 With reports indicating that
the average incident can cost up to $ 500,000,2 and
Symantec revealing that IT is becoming increasingly
mission critical to organizations, with 60% of all
applications now deemed mission critical, it is not
surprising to find that disaster recovery has made it
to the forefront of the agenda.3
In addition to causing IT system outages, however, dramatic natural disasters
and criminal damage can make it impossible even for staff to access their usual
workplace, severely undercutting productivity unless alternative workspace
arrangements can be rapidly provided.
In particular, recent global events have drawn attention to the importance, not only
of providing rapid IT backup, but also of providing for entirely new premises at very
short notice in order for businesses to continue operating smoothly. Fires, floods,
burglary, criminal damage and natural disasters will all affect both the technology and
the actual workspace where business critical activities are carried out, so although
personnel may be able to access information within 24 hours, they may well not
be able to return to the office for a longer period of time, relying on home internet
connections of varying speeds and no access to office facilities such as printers
and meeting rooms for example. Larger companies may also be able to rely on
their larger property portfolio to relocate staff in the event of an emergency, critically
overlooking the fact that offices may be very distant from each other and not provide
a suitable space.
The tragic tsunami that hit Japan in March 2011, major flooding in Australia in
January 2011, earthquakes in Chile and New Zealand and damage caused by
Hurricane Irene are just a few of the natural disasters that affected the world in 2011
halting operations and in many cases leaving businesses with damaged premises
and no plan B as to where to relocate their staff. Although these disasters had
global resonance and businesses often have operations set up in various countries,
significant national differences are revealed when analysing how prepared businesses
are for disaster and interruption.
1
Continuity Central, ABI Research estimates business continuity and data disaster recovery market growth, 10th March 2010
2
Symantec, Disaster Recovery Research Report, 2009
3
Symantec, Disaster Recovery Research Report, 2009
Half prepared? | November 2011 | Page 4

5. Introduction
The cost to businesses, but also insurers can be devastating and a joint report by
the Business Continuity Institute and the Chartered Insurance Institute’s General
Insurance Faculties encouraged the insurance sector to recognise and encourage
clients in the development of their own business continuity programmes in terms and
pricing of business interruption insurance.4 Lloyds of London has also warned that
the insurance industry faces significant difficulties after record claims following the
Australia, New Zealand, Japan and the US catastrophes in 2011. The first half
of 2011 is in fact reported to have been the costliest six-month period in the
insurance market’s history.5
The latest Acronis report, for example, reveals that Germany is the country where
firms are most confident of their back up and business continuity processes, closely
followed by the Netherlands. The rest of Europe, however, fared badly with the UK
and France scoring below average.6 In the USA, where just over half of companies
test their backup facilities annually (54%), less than a third (29%) had ‘work at home
days’ highlighting that the remaining companies have no measure of whether their
company can continue to effectively operate with employees entirely working from
home and using their own resources.7
In addition to this, a report identifying the US and Japan as the countries most likely
to incur huge expenses due to natural disasters, reports that it’s emerging economies
such as China and India that pose a higher risk to investors as they are lacking the
capacity to deal with natural catastrophe. Gartner, fortunately, highlights that Indian
companies in particular see improving business continuity in the year ahead as an
objective second only to achieving business growth.8 Mexico and Canada were also
rated as at high risk by the report.9
4
The Business Continuity Institute and the Chartered Insurance Institute’s General Insurance Faculties , Insurance sector views on business continuity, 2010
5
The Guardian, Lloyd’s of London hit by record claims for natural disasters, 21st September 2011
6
Acronis, The Acronis Global Disaster Recovery Index: 2011, 2011
7
The Conference Board, Preparedness in the Private Sector-2011, 2011
8
Continuity Central, Gartner survey identifies business continuity as one of the top two priorities for Indian organizations, 8th March 2011
9
Maplecroft, Natural Hazards Risk Atlas 2011 (NRHA),2011
Half prepared? | November 2011 | Page 5

6. The Regus Study
In order to shed some light on to the level of
preparedness of global businesses and their take
up of disaster recovery Regus commissioned
research canvassing the opinions of over 12,000
senior managers and owners of businesses from
85 countries and found that there is a close to 50-50
divide between businesses that have a plan allowing
their IT systems to return to normal operation within
24 hours and those that do not.
The same almost even split is also revealed when respondents were asked whether
their business had workspace disaster recovery ensuring that staff could effectively
return to work within 24 hours.
We have a disaster recovery facility which ensures our computing systems
are up and running within 24 hours
Australia
Germany
UK
Netherlands
Belgium
South Africa
Global Average
USA
India
Canada
Mexico
Brazil
China
France
Japan
0% 10% 20% 30% 40% 50% 60% 70% 80%
No Yes
Half prepared? | November 2011 | Page 6

7. The Regus Study
Although it is an old adage the most important asset to a business are its people,
it would seem that little attention is devoted by businesses to ensuring that staff
are provided with a suitable work location in case of emergency. In fact, 45% of
businesses globally do not have vital IT back up and even more, 55% are not
prepared to relocate their staff within 24 hours of a disaster taking place.
In particular the IT systems of more than half of companies in France (54%),
China (52%), Brazil (51%), Japan (63%) and Mexico (51%) are not ready to return
operational within 24 hours. Countries that are particularly unprepared to find
alternative workspace for their staff in case of emergency are: Japan (68%), Canada
(65%), India (60%) and the USA (59%). While it may well be that high levels of
internet penetration in some countries has led business owners to believe that home
access is a suitable substitute to the office in case of an emergency, connection
speeds may vary, access to office supplies and technology and the reduction of
collaborative working could become critical.
We have a disaster recovery facility which ensures an alternative workspace
will be up and running within 24 hours
Netherlands
Germany
Belgium
Australia
China
UK
Global Average
France
Mexico
Brazil
South Africa
USA
India
Canada
Japan
0% 10% 20% 30% 40% 50% 60% 70% 80%
No Yes
Globally 33% of respondents believe that the cost of disaster recovery is prohibitive
and the majority (55%) of firms agree that businesses like their own would be willing
to invest around $100/month to access a workspace disaster recovery facility in case
of emergency.
Half prepared? | November 2011 | Page 7

8. The Regus Study
While a third of companies believe that the cost of disaster recovery is prohibitive, the
research suggests that there are strong divergences in pricing or perceptions of cost
across the globe. Less than a quarter of companies believe that these are prohibitive
in Australia (23%), Belgium (16%), Germany (22%) and the UK (23%).
I believe that the cost of formal disaster recovery facilities is prohibitive
China
Japan
Mexico
India
Canada
South Africa
Global Average
France
Brazil
USA
Netherlands
UK
Australia
Germany
Belgium
0% 10% 20% 30% 40% 50% 60%
At the other end of the spectrum, fully 50% of Chinese companies believe that
business continuity is too expensive, followed by 47% of firms in Japan, where take
up was the lowest, Mexico (45%) and India (44%).
Half prepared? | November 2011 | Page 8

9. The Regus Study
A number of workspace disaster recovery solutions are available on the market giving
organisations immediate access to a network of temporary premises, fully functional
in terms of IT, internet and office services. These are often structured on the basis
of a small monthly fee that buys the option to access such workspace and facilities
the moment a disaster strikes. In other words, the monthly charge contributes to the
cost of providing Workplace Recovery space. In other instances, a larger monthly
fee incorporates tenure for a given number of days following the disaster. In China
(70%), Brazil (66%), India (66%), Mexico (67%) and South Africa (61%) a majority of
respondents believe other firms like would buy the option to access a workspace
disaster recovery facility if that option were priced at around $100/month. In other
geographies, demand for this kind of facility is expressed by a significant proportion
of respondents.
I believe most firms like mine would buy the option to access a workspace
disaster recovery facility if that option were priced at around $100/month
China
Mexico
India
Brazil
South Africa
Canada
Japan
Global Average
Netherlands
Australia
USA
Belgium
France
Germany
UK
0% 10% 20% 30% 40% 50% 60% 70% 80%
Half prepared? | November 2011 | Page 9

10. Company size variations
The survey also analysed the impact of company
size on the existence of a 24 hour disaster recovery
function and found that as companies become larger
they are more likely to have a solution in place both for
their IT and for their staff.
Disaster recovery by size of company
Large
Medium
Small
0% 10% 20% 30% 40% 50% 60% 70% 80%
We have a disaster recovery facility ensuring alternative workspace is available within 24 hours
We have a disaster recovery facility ensuring IT systems are up and running within 24 hours
Only 51% of small businesses have an IT business continuity plan in place compared
to fully 74% of large businesses and, in spite of reliance on alternative offices and
buildings, larger companies (60%) are also far more likely to have a workspace
business continuity plan in place than small companies (43%).
The perceived cost of disaster recovery is a deterrent to over a third of small firms
(36%) and less so to larger firms (20%) that have more infrastructure to protect and
staff to relocate. Although more than half of all firms would purchase a workspace
business continuity plan priced at around $100 a month, larger firms (66%) are more
likely to do so than smaller companies (53%).
Half prepared? | November 2011 | Page 10

11. Company sector variations
Understandably, the sector most likely to have an
IT disaster recovery plan in place is the financial
services sector.
In many countries, having a continuity plan or system in place is a formal requirement
for financial organisations, but the results suggest that the speed at which
businesses can recover operations varies as only 71% of financial services firms
declared that they have an IT disaster recovery plan that ensures they are up and
running within 24 hours. Another surprising finding is that strikingly, only 66% of ICT
businesses actually have an IT disaster recovery function in place.
Consultancy (51%) and media (49%) firms reveal an almost 50/50 split among
companies that have an IT continuity plan and those that do not. Media firms are
also the least likely to have a workspace disaster recovery alternatives in place
(40%), followed by consulting firms (46%). Highlighting their greater awareness of the
business continuity issue financial services (57%) and ICT businesses (55%) are more
likely to have a workspace recovery system in place ensuring staff can return to their
normal operations within 24 hours.
Disaster recovery solutions by sector
Media
ICT
Consulting
Finance
0% 10% 20% 30% 40% 50% 60% 70% 80%
We have a disaster recovery facility ensuring alternative workspace is available within 24 hours
We have a disaster recovery facility ensuring IT systems are up and running within 24 hours
Half prepared? | November 2011 | Page 11

12. Company sector variations
Media companies, are the most likely to be put off by the perceived cost of disaster
recovery with 43% declaring that they believe the cost is prohibitive. This contrasts
strongly with only around a quarter of respondents in the financial services (24%) and
ICT (25%) sectors where companies are more likely to have purchased or at least
investigated the option of purchasing a solution.
Half prepared? | November 2011 | Page 12

13. Conclusion
Across the globe around half of firms have no formal
disaster recovery facility in place for their IT or their
workforce. This lack of planning for the recovery of
IT operations and for relocating staff that cannot
access premises could damage businesses
irrevocably should they experience extensive
downtime or damage to their premises.
Most businesses appear to run this risk due to the high perceived cost of Disaster
Recovery, but also report that they would be willing to pay around $100/month to
access a workplace recovery facility in case of emergency. This is an important
indication that although the majority of businesses are taking a gamble with the
resilience of their operations, the main barrier to overcome is one of perceived cost
and not mentality.
With more and more affordable business continuity alternatives being made available
around the globe and national differences in pricing rapidly disappearing thanks to
international service providers, it is likely that more businesses will finally stop taking
the risk of expensive business interruption and invest in business continuity plans that
allow their systems and their staff to continue working seamlessly from fully equipped
locations.
Half prepared? | November 2011 | Page 13

14. About Regus
Regus is the world’s largest provider of flexible
workplaces, with products and services ranging from
fully equipped offices to professional meeting rooms,
business lounges and the world’s largest network of
video communication studios. Regus enables people
to work their way, whether it’s from home, on the road
or from an office.
Customers such as Google, GlaxoSmithKline, and Nokia join hundreds of thousands
of growing small and medium businesses that benefit from outsourcing their office
and workplace needs to Regus, allowing them to focus on their core activities.
Over 900,000 customers a day benefit from Regus facilities spread across a global
footprint of 1,200 locations in 550 cities and 92 countries, which allow individuals
and companies to work wherever, however and whenever they want to. Regus was
founded in Brussels, Belgium in 1989, is headquartered in Luxembourg and listed on
the London Stock Exchange. For more information please visit: www.regus.com
Methodology
Over 12,000 business respondents from the Regus global contacts database
spanning 85 countries were interviewed during August 2011. The Regus
global contacts database of over 1 million business-people worldwide is highly
representative of business owners and senior managers across the globe.
Respondents were asked a wide variety of questions including ones about their
economic performance and expectation, along with their views of the business
continuity market and their use of disaster recovery alternatives within their own
firms. The survey was managed and administered by the independent organisation,
Mindmetre – www.mindmetre.co.uk.
Half prepared? | November 2011 | Page 14

15. Notes
Half prepared? | November 2011 | Page 15

16. Whilst every effort has been taken to verify the accuracy
of this information, Regus cannot accept any responsibility
or liability for reliance by any person on this report or any of the
information, opinions or conclusions set out in this report.