A global study reveals network outage costs businesses worldwide between $300,000 and $6 million in downtime.
The global pandemic showed the importance of network resilience. And despite measures taken to invest in a robust infrastructure, a large number of IT companies are grappling with network outages. According to a studyOpens a new window Opens a new window Measuring the True Cost of Network Outages, by Opengear, network resilience has become the top priority for 73% of U.S. IT departments, as well as 70% of US companies at the board level. What’s more, more than half of senior IT decision-makers and network managers globally have experienced four or more network outages lasting more than 30 minutes in the past year.
Here’s the clincher: the cost of downtime as per the survey is pegged between $300,000 and $6 million for organizations worldwide. The study spotlights that in the U.S., around 38% organizations surveyed reported losing more than $1 million in the past 12 months alone. In the high-paced technology environment, network outage is a loss of network resources like switches, transport facilities and caused by complete or partial failure of software or hardware components, upgrades, or operational errors that costs millions of dollars.
Besides financial implications, network outages also affect customer satisfaction and overall productivity. According to Steve Cummins, Vice President of Marketing at Opengear, “The true cost of a network outage is much more than just lost revenue. Our survey found that reduced customer satisfaction was the biggest impact of an outage according to 41% of respondents, ahead of data loss (34%) and financial loss (31%). Organizations need to think in advance about how they can avoid, and then recover from, an outage quickly before the consequences become severe.â€
The global crisis has changed the way businesses operate and in the current business environment, the cost of downtime is steep. AtlassianOpens a new window reveals the financial implications of outages for industry leaders that are otherwise well-positioned to weather the financial storm. In March, 2019, Menlo Park giant Facebook suffered a 14-hour outage that reportedly set back the company by $90 million. Opens a new window In the current environment, the stakes are even higher for consumer-facing businesses such as e-commerce, financial services, and healthcare firms that need to beef up network architecture to avoid downtime.
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