Is my understanding correct w.r.t DC and DR setup for Dynatrace SaaS?
There will be hosts in DC and DR as well (number of hosts might be less in case of DR)
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As a SaaS customer, DR should be quite minimal as Dynatrace has Cloud clusters handling your instances and in the event an issue arises, new clusters will be provisioned and will take over the work load.
DR Prep I could see more so for a Managed customer, where I would recommend setting up Dynatrace Backups on a daily basis which will export the Dynatrace settings in the event of a DR issue, you could spin up a new instance and reload it with the back up. Also as a Managed customer, it is recommended to have a cluster set up for failover. Having a 3 cluster node allows you to operate while other locations or nodes have an issue like a Natural Disaster.
We also had a DR set up, you can read more about it here: https://www.dynatrace.com/news/blog/supporting-disaster-recovery-with-dynatrace/ These hosts were always monitored as core business and in the event of a DR, we had replicas that would spin up with the Dynatrace oneagnet and assume the IPs of the hosts so there was no issue with turning on of off monitoring.