Don’t Turn Away Business Because of a Network Outage!

On average, the businesses surveyed said they suffered 14 hours of IT downtime per year. Half of those said IT outages damage their reputation and 18% described the impact on their reputation as ‘very damaging.’ Headlines about IT failures certainly don’t help.

Downtime Cost Per Hour

35 percent of survey respondents believe that one hour of downtime for their most business critical applications will cost their company $25,000 or less, potentially underestimating the adverse impact that IT downtime can have on their entire businesses. Just 10 percent of survey respondents report financial impact of $150,000 or greater per hour, which is closer to most industry cost estimates — e.g., the Aberdeen Group’s estimate of $110,000 an hour for the average company.

A conservative estimate from Gartner pegs the hourly cost of downtime for computer networks at $42,000, so a company that suffers from worse than average downtime of 175 hours a year can lose more than $7 million per year. But the cost of each outage affects each company differently, so it’s important to know how to calculate the precise financial impact.

Downtime Cost Per Minute

The average cost of data center downtime across industries was approximately $5,600 per minute.

According to a study by the Ponemon Institute, the minimum, median, mean and maximum cost per minute of unplanned outages was computed based on input from 41 data centers. In the chart below, the most expensive cost of an unplanned outage is over $11,000 per minute. On average, the cost of an unplanned outage per minute is likely to exceed $5,000 per incident.

Downtime Cost Per Year

Gartner has calculated that downtime can reach 87 hours a year. Obviously that’s the sum of many outages – anywhere from a few minutes to hours. But at the end of the day, for an organization this becomes a staggering figure.

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