SunGard's quarterly earnings statement for the period ending March 31, 2013 showed a 3% drop in revenues from the prior period year period. The availability services unit specifically said "our recovery services revenue has been declining due to customers shifting from traditional backup and recovery solutions to either in-house solutions or disk-based, cloud-based or managed recovery solutions."
"Some customers, especially among the very largest having significant IT resources, prefer to develop and maintain their own in-house availability solutions, which can result in a loss of revenue from those customers. If this trend continues or worsens, there will be continued pressure on our organic growth rate," SunGard acknowledges. "Also, cloud-based solutions are also perceived as inherently redundant and highly available. This is a misconception, as high availability is only provided when expressly engineered into a cloud environment."
In a move to re-invent itself, SunGard has already taken steps to expand its business continuity into more cloud-subscription-oriented offerings, such as its "hosted private cloud" for "Oracle as a Service" and "hosted Cisco UCS" in some of its data center locations, including Philadelphia and Aurora, Colo.
It also has some VMware-oriented managed cloud services based on either multi-tenancy or a dedicated ESX cluster for managed OS, threat and log management and application management in several data centers in the U.S., Canada and the United Kingdom.
Shanmugam adds that SunGard has been working closely with VMware to add SunGard's own technology to VMware's Site Recovery Manager software to replicate application data, and it's the "secret sauce" that allows SunGard to offer VMware-based disaster-recovery services.
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