AT&T Study: Business Continuity Planning Evolves With Emerging Technologies

Despite economy, study finds investment in new technologies will continue in 2009

DALLAS, June 1 -- The dramatic rise in social networking and mobility trends is presenting new challenges and considerations to companies' network security, disaster planning and business continuity programs. The good news: businesses are stepping up their technology investment and efforts to meet these challenges despite the economy; and mobile devices are increasingly part of business continuity plans. These are some of the findings to emerge from AT&T's* annual study on business continuity and disaster recovery preparedness for U.S. businesses in the private sector.

For the eighth consecutive year, AT&T surveyed IT executives from companies throughout the United States that have at least $25 million in annual revenue to get their views on disaster planning and business continuity trends. Sixty-eight percent of the companies surveyed this year have locations outside of the U.S.

  2009 AT&T Business Continuity Study Key Findings:

  -- 2009 IT Spending Trends and Investment in New Technologies. Two-thirds
     (65%) of all executives indicate that their companies will be investing
     in new technologies for 2009. Investment tends to focus on new
     equipment and a variety of software, storage and security upgrades.

     When looking at IT spending trends for this year, forty percent of
     executives surveyed indicated that their IT budgets are expected to be
     lower this year than in the previous two years, while nearly one-fourth
     (24%) indicated that budgets will be higher. Interestingly, companies
     with business continuity plans in place are significantly more likely
     than those without plans to anticipate budget increases (32% compared
     to 11%).

  -- Mobility Considerations Emerge. Sixty-seven percent of executives
     indicate that wireless network capabilities are part of their business
     continuity plan. Furthermore, nearly half (46%) stated that mobile
     devices play a major role in their plan's considerations.

  -- Social Networking Heightens Security Threats. Three out of four
     executives surveyed are concerned about the increased use of social
     networking capabilities' potential impact on network security. Forty-
     four percent allow employees access to such social networking sites.
     However, hacking still continues to be listed as the biggest security
     risk to companies (30% compared with 3% for social networking).


  Business Continuity Planning Trends

One-third of companies surveyed have used their business continuity plan that is in place. Nationally, companies are most likely to invoke their business continuity plan due to extreme weather (25%) or power outages at facilities (19%). When looking at the five markets surveyed, companies in Houston and Miami/Orlando/Tampa are significantly more likely to have invoked their business continuity plan (52% and 51% respectively, compared with 36% nationally). These results are not surprising considering these regions have been hit the hardest with hurricanes.

Nearly seventy-four percent of businesses surveyed set target recovery times for their key business processes (compared with sixty-seven percent in 2008), an indication that businesses understand not only is it important to have a plan in place, but that plan needs to identify goals and expectations for recovery should it be invoked. In the event of a natural or man-made disaster, these companies have special arrangements for communicating with key executives spanning voice, email and text-messaging.

In addition, the study found that companies have put increased attention to not only their own business continuity plans but those of their key partners and suppliers. One-third of the respondents require suppliers and other vendors to have a business continuity plan in place in order to do business with their company.

"In today's business environment, connectivity cannot be disrupted, which is why business continuity planning and disaster recovery efforts are paramount," said Bill Archer, chief marketing officer - AT&T Business Solutions. "The top three lessons learned by the executives we surveyed who have experienced a disaster include: having a plan in place is critical; increase back-up systems to ensure no data loss; and have multiple means of communication available. AT&T is focused on helping our customers stay connected with their employees and customers no matter if and when disaster strikes."

AT&T offers a wide array of business continuity services, encompassing disaster planning, risk management, recovery preparedness and communications readiness. AT&T Business Continuity Services are comprehensive, providing enterprises with business-impact analysis, risk assessments, hosting and application services, a full continuum of storage solutions, high-availability network solutions and network and IT security solutions.

AT&T also conducts several Network Disaster Recovery (NDR) exercises a year - the next one to be held on July 14 - 15 in Washington, D.C. These events are designed to test, refine and strengthen AT&T's business continuity and disaster recovery services in order to minimize network downtime. By simulating large-scale disasters and network service disruptions, AT&T can apply and refine best practices for rapidly restoring communications to government and business customers.

For more than a decade, AT&T has invested more than $500 million in its NDR program, which includes specially trained managers, engineers and technicians from across the United States, as well as a fleet of more than 300 self-contained equipment trailers and support vehicles that house the same equipment and components as an AT&T data-routing or voice-switching center.

For more information on the AT&T 2009 Business Continuity Study including the complete research results, visit www.att.com/businesscontinuity-news.

Study Methodology

The 2009 AT&T Business Continuity Study is based on an online survey of 502 Information Technology (IT) executives in five U.S. metropolitan/regional areas: Houston, Detroit, Southern California (Los Angeles/Orange County/San Diego), Florida (Miami/Orlando/Tampa), and

Baltimore/Washington, D.C. The study was conducted by e-Rewards Market Research with companies having total revenues of more than $25 million. Surveys were obtained between February 9 and February 14, 2009.

All survey respondents have primary responsibility for business continuity planning. Sixty-eight percent represent companies with locations outside of the U.S.

*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.

About AT&T

AT&T Inc. (NYSE:T) is a premier communications holding company. Its subsidiaries and affiliates - AT&T operating companies - are the providers of AT&T services in the United States and around the world. With a powerful array of network resources that includes the nation's fastest 3G network, AT&T is a leading provider of wireless, Wi-Fi, high speed Internet and voice services. AT&T offers the best wireless coverage worldwide, offering the most wireless phones that work in the most countries. It also offers advanced TV services under the AT&T U-verse(SM) and AT&T | DIRECTV(SM) brands. The company's suite of IP-based business communications services is one of the most advanced in the world. In domestic markets, AT&T's Yellow Pages and YELLOWPAGES.COM organizations are known for their leadership in directory publishing and advertising sales. In 2009, AT&T again ranked No. 1 in the telecommunications industry on FORTUNE(R) magazine's list of the World's Most Admired Companies.

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