Infonetics: Downtime Blues
New Infonetics Research report finds network downtime causes significant revenue losses, ranging to almost 1%
March 6, 2003
SAN JOSE, Calif. -- A new report based on in-depth case studies of six large organizations across various industries shows that these companies are losing up to $96,632 per hour of network downtime. The Costs of Enterprise Downtime 2003, released today by Infonetics Research, concludes that network outages and degradations are causing significant losses in productivity and revenue, ranging from less than 1/10th of 1% of total revenue to almost 1% (up to $74.6 million) per year. "Most IT managers suspect that downtime costs a ton of money—they have a sinking feeling that money is draining from the company coffers every time a server crashes, an Ethernet switch flashes yellow and then goes dark, or a service provider sends a courteous e-mail a week after a T1 went down," said Jeff Wilson, executive director of Infonetics Research. "They are right. Most organizations don't know where to start, or how to go about fixing problems when they find them. Tracking downtime is the first step, and that is something networking products, management vendors, and service providers can make easier." Study Findings
Servers are the number-one cause of downtime, followed closely by applications and network products
Network products are another leading cause of network downtime; router, switch, and NIC failure and performance problems account for about a quarter of losses across the board
Revenue losses are higher than productivity losses without exception, and in many cases they are higher by far, but productivity losses are very costly and hard to pinpoint and fix
Service degradations are difficult to track and fix, and require investment in technologies that optimize performance, which many companies are not willing to make because the financial benefits are generally unclear.
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