Average stay value According to a 2014 Gartner study, the average cost per minute of stay is USD 5,600. However, the research company is quick to point out that this is only an average. An Avaya report from the same year found that average costs range from $2,300 to $9,000 per minute, depending on factors such as company size and vertical industry.
And that number has been rising since 2014. In a recent report (2016 by the Ponemon Institute), Gartner’s average has increased from $5,600 per minute to nearly $9,000 per minute. For small businesses, that number drops to a lower level, from $137 to $427 per minute, but it’s still significant.
Where your company falls in this broad range depends on many factors, including industry vertical, organization size, and business model.
IT downtime factors
The average cost of IT downtime depends on many factors. If you consider your revenue, industry, actual length of downtime, number of people affected, time of day, etc., the financial loss will vary.
For example, for businesses that depend on sophisticated data transactions such as banking and retail e-commerce, the loss per hour is much higher. If there are unexpected outages at peak times, the losses will of course be even greater.
Additional costs of IT downtime
These are not the only costs to consider when calculating the total cost of downtime. There may also be recovery costs, such as staff overtime, equipment or system repair costs and data recovery costs. For some businesses, downtime can have a negative impact on the supply chain and cause delays and costs.
From this perspective, network management seems like a good investment, right? That’s a lot of costs that would otherwise add up. Other costs are more difficult to identify. We’ve already talked about how IT outages can have a negative impact on your company’s reputation. Is your organization likely to lose customers as a result of downtime? It’s certainly possible.
Will your company miss important deadlines or be unable to serve customers and potential customers at critical times? If their network management is impaired, the answer is undoubtedly yes.
Will customers and potential customers lose trust in your company and to what extent? It’s hard to say, but we bet some of them won’t come back.
Overall, the cost per hour of stay will continue to increase. This means that companies of all sizes in all vertical markets will have little or no tolerance for downtime.
Companies must take the necessary measures to ensure the reliability and security of their hardware, software applications and connected devices across the entire network ecosystem. Safety and security training is absolutely essential to maintain the uptime and availability of equipment and data assets. This will ensure business continuity and reduce risk.
Enterprises should carefully consider each outage and calculate all associated financial costs, impact on internal productivity, recovery efforts and business risks to the organization. Companies should also determine whether customers, suppliers and business partners have experienced negative impacts (e.g. downtime, reduced productivity, security risks or loss of business due to outages).