3 Ways your DRaaS is actually protecting your data

March 12, 2020
3 Ways your DRaaS is actually protecting your data

With today’s widespread reliance on technology and electronic data, there’s a good chance that your business has also grown to rely heavily on your IT systems to complete critical tasks, organize and communicate activity, and manage all your customer and financial data. That means your IT systems are not just central but essential to your everyday business operations.

So you probably have some kind of disaster recovery in place to make sure your company can bounce back from an unexpected blow to your systems. Everyone hopes they won’t need it, but measures like disaster recovery as a service (DRaaS) are crucial for small organizations who can’t afford to risk downtime — not to mention the loss of data and services — but lack the funds and expertise to tackle DR.

But how do you know whether your DRaaS solution will perform when you need it most? Check for these 3 key components that the right DRaaS provider should include, so if the worst happens, you can get right back to business without missing a beat.

Keeping your software and backups current

A good DRaaS provider will be systematically updating the software, file, and data it stores for you, making sure that they have the most complete backups in case of an emergency. If their work is even a little inconsistent, you could lose days (if not weeks) of time and thousands of dollars because of gaps in data or application coverage. It pays to make sure that they have a solid process for preserving the most current and relevant business data and information.

Preparing an actual plan in case of disaster

Honestly, this should be table stakes for any DRaaS offering. We have heard horror stories about DRaaS providers that failed customers because they simply were not thorough and prepared. Assuming a standard roadmap for building and delivering reliable cloud-based business recovery is simply not realistic. Providers with limited judgment or expertise may not cover all the bases or know much about your business, your critical system needs and how to help your team recover. If something goes terribly wrong, you could end up with a convoluted mess that requires even more of your time to sort through and figure out. It’s just unacceptable to be flying blind as a DRaaS provider, so demand more in this area.

Maintaining high-performance systems

From physical servers to cloud resources to failover techniques, your provider should be able to share details about just how well their systems perform for you and other clients. You actually want to hear bragging about their advanced technology and bulletproof processes, as long as they can back it up with specs, numbers, and stories that translate to satisfied customers with healthy IT systems. You literally have a vested interest in their level of firewalls and encryption, how often they update their hardware and software, and how they manage service for multiple clients. So there’s absolutely no reason to settle for any provider who’s not ready to show off and show up when you ask what they are working with and how they do it. 

Take Action

DRaaS is critical to the success and maybe even the survival of your business, especially in the face of catastrophic errors or accidents that can take down your systems. But selecting a provider for such important business protection is less risky when you know what to look for and what you should expect.

01 CORE FINANCIAL CAPABILITIES

General ledger and multi-dimensional reporting

Does the system support dimensional reporting by project, department, and location without custom coding?

Multi-entity and intercompany accounting

Can it manage multiple legal entities, consolidations, and intercompany eliminations natively?

Multi-currency support

Real-time exchange rate updates and full transaction-level currency tracking, not just display formatting.

AP / AR automation

What level of workflow automation exists for approvals, matching, and exception handling?

Month-end close timeline

What is the realistic close time post-go-live for a company of your size?

Fixed assets management

Depreciation scheduling, disposals, and audit trail, all within the same system?

Audit trail and access controls

Is the audit trail immutable? Are segregation of duties and role-based access enforced natively?

FP&A, budgeting, and forecasting

Does integrated planning come standard, or is it a separate module with a separate cost?

SOX and regulatory compliance controls

How does the system document and enforce compliance controls? What does the auditor workflow look like?

Open API architecture

Can the system connect to your CRM, HRIS, and banking tools?

02 OPERATIONS INTEGRATION

Note: Evaluate these based on your industry. Not every item applies to every business.

Manufacturing: MRP and production planning

Multi-level BOM, MRP runs, capacity scheduling, and shop floor data collection. How native vs. bolted on?

Manufacturing: quality and compliance

Lot and serial traceability, non-conformance tracking, and certificate generation within the same system?

Construction: job costing and POC billing

CSI MasterFormat cost codes, percentage-of-completion revenue recognition, retainage tracking, and AIA billing?

Construction: change order management

Approval workflows, commitment tracking, and impact to project financials. All connected?

Distribution: warehouse management

Pick, pack, ship, barcode and RFID, wave picking. Native WMS or requiring a separate add-on?

Distribution: multi-channel order management

EDI, ecommerce, and marketplace orders flowing into a single order management system?

Field service: mobile workforce

Dispatching, field time entry, and customer billing accessible on mobile without a separate app?

Inventory optimization

Demand forecasting, safety stock calculations, and ABC classification. Built-in or third-party?

Project accounting

Cost tracking by project, resource billing, and project-level P&L without manual workarounds?

Subcontractor and vendor compliance

Certificate of insurance tracking, lien waiver management, and vendor performance benchmarking?

03 AI AND AUTOMATION READINESS

Live vs. roadmap

Which AI features are in production today? Which are on the roadmap, and what is the committed delivery timeline?

AI-native vs. AI-enhanced

Is AI built into the database layer, enabling predictive insights from live transactional data, or is it a sidecar module that summarizes outputs after the fact? The distinction affects what the system can do in real time vs. what it can only report on retroactively.

Automated reconciliation

What is the documented match rate for automated bank and AP reconciliation?

Anomaly detection

Does the system flag unusual transactions in real time, or does this require a separate analytics layer?

Natural language querying

Can finance users query data without relying on IT or writing custom reports?

Cash flow forecasting

Is Machine Learning-based forecasting included in the base platform, or is it an add-on with a separate cost?

AI data governance

Where is AI-processed data stored? Can AI-driven decisions be audited and explained?

Pricing transparency

Are all AI capabilities included in your licensing tier, or will they be billed separately as usage scales?

04 IMPLEMENTATION AND TOTAL COST OF OWNERSHIP

Implementation methodology: big bang vs. phased standup

Is the partner proposing a single large go-live or a phased approach? Do they get you live on a minimum viable product first, then coach you through how to expand as your business grows? Methodology choice directly impacts risk exposure and time to value.

Realistic go-live timeline

What is the actual go-live time for companies your size and complexity? Talk about a milestone-level schedule.

Data migration approach

How is historical data validated post-migration? What is the tolerance for data gaps?

Customization scope

Heavy customizations require deep discovery before you commit. Have you and your partner mapped out exactly how each integration would work, what data moves between systems, and who owns troubleshooting when something breaks? The time spent on that mapping before go-live is far less expensive than finding the gaps after.

All-in 5-year cost

The full return on an ERP investment rarely shows up in year one. It builds as manual processes are eliminated, close cycles shorten, and operational data becomes reliable enough to drive decisions. Together we can map out total costs across five years, licensing, implementation, support, integrations, and upgrades, and then ask them to show you where the savings accumulate over that same period.

Internal headcount required

How many internal FTEs will be needed to support and administer this system post-go-live? And look at the other side of that equation too: how much time does your current team spend on manual processes that this system eliminates? How many additional hires will you not need to make as the business grows? The right ERP should reduce administrative burden, not just redistribute it.

Upgrade policy

What does the upgrade process look like? Is it included in your subscription, or billed separately?

On-time and on-budget track record

How does the partner guarantee the project goes live on time and on budget? Get the details.

05 EVALUATING YOUR IMPLEMENTATION PARTNER

Industry experience

How many implementations have they completed in your industry in the last 12 months?

Reference calls

Can they provide three reference calls with companies of similar size and complexity in your vertical?

Gold-level certification

Does the partner hold the software publisher’s highest certification tier? Gold-level certification requires a verified track record of successful implementations, multiple credentialed consultants, and ongoing performance benchmarks. It also means priority escalation access to the publisher’s engineering team when problems go beyond standard support.

Dedicated support model

Will you have a named account manager and a dedicated support team, or shared resources?

ISV selection and vetting

Partners with real industry expertise do more than implement software. They solution architect your entire environment, including the third-party tools that connect to your ERP. Ask whether they have hands-on experience with the specific solutions your business relies on for tax, compliance, warehouse management, or construction project tracking. The right partner has done this before in your industry and can tell you what works in production, not just what looks good in a demo.

Hypercare post go-live

First 30 to 90 days of support. Is it included, dedicated, or the same shared queue as general support?

Staff continuity

What is the project staffing model?

WATCH FOR THESE DURING EVALUATION

  • Unclear data ownership or exit terms
  • AI features without audit trails or explainability
  • Implementation timeline promises that do not account for data migration

READY TO WALK THROUGH THIS WITH SOMEONE WHO KNOWS THE ANSWERS?

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