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The Business Case for Preparedness
Impact of Down Time on Annual Revenue
May 23, 2008 11:48 PM
Medium-sized businesses lose nearly $1 million annually in network downtime.
"Medium businesses lose $867,000 a year to network downtime", Infonetics Research, Inc, Infonetics Research, Inc., 2006
Key Points:
* "In a new study on network downtime, Infonetics Research found that medium businesses (101 to 1,000 employees) are losing an average of 1% of their annual revenue, or $867,000, to downtime."
* "The study, The Costs of Downtime: North American Medium Businesses 2006 says that companies experience an average of nearly 140 hours of downtime every year, with 56% of that caused by pure outages. Many medium businesses have a hard time closely tracking downtime caused by service degradation because they don't have the proper network management tools to observe and quantify service degradations."
* "There isn't a single problem area that organizations need to focus on, which would be a simpler fix," said Jeff Wilson, principal analyst at Infonetics Research. Every decision is critical, from hardware selection, to product setup and from employee training to SLAs with service providers. Human error is the most troubling, because fixes for human error are elusive and require process changes and retraining, which can take a long time and be very expensive."
* "Infonetics conducted the study to understand the causes and calculate the cost of outages and service degradations in terms of lost revenue and productivity. They studied seven sources of downtime: network products, security products, cables/connectors, servers, applications, service providers, and e-commerce; and the four common causes: hardware problems, software problems, human error, and service provider error."
Link: http://www.infonetics.com/resources/purple.shtml?upna06.dwn.nr.shtml