A disaster recovery appliance is described herein. The disaster recovery appliance is coupled to one or more servers. The disaster recovery appliance continuously receives backup data for each of the one or more servers. When a server fails, the disaster recovery appliance, replaces the failed server. While the failed server is inaccessible, the disaster recovery appliance is able to mimic the functionality of the failed server. In some embodiments, the disaster recovery appliance is able to act as a server in addition to a backup device for the other servers.