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The True Cost of Network Outages for Businesses

  • 3 min read

Today, enterprises and carriers with large, complex networks often find it overwhelming to manage their networks to minimise outages and performance issues. All data centres and enterprises MUST look to secure and manage their growing network traffic demands, improve productivity and save MTTR by having complete network visibility. An estimate from Gartner reveals the hourly cost of downtime for computer networks at $42,000.
Here are some more figures for network downtime.

  • 98% of organisations say a single hour of downtime costs over $100,000
  • 81% of respondents indicated that 60 minutes of downtime costs their business over $300,000
  • 33% of those enterprises reported that one hour of downtime costs their firms $1-5 million

Source: Information Technology Intelligence Consulting Research
Network outages can result in millions of dollars per hour losses. A lack of visibility can lead to a domain-based ‘blame game’ and ‘finger pointing’ culture/mentality between SecOps and NetOps, if collecting their information from different sources may dispute each other’s findings. Network outages and network downtime are costly for business because its real value is much more than you see.
Loss of credibility
Network downtime can seriously harm the company’s hard-earned reputation. It can lead to crisis. It does not only affect the employees but also other stakeholders including the customers. Several airlines have seen their brand value going down when they have been in a similar situation. This can happen to any business that is not careful to control IT failures. Any loss of credibility with the client can lead to a company’s downfall.
Decrease in Productivity
An unplanned network failure leads to disruption in business. There is a loss of man hours which decreases productivity. The exact calculation of the decline in productivity can be calculated based on how many users are affected. The productivity issue could extend to other vendors, partners, or users.
Financial liability
You could have legal or financial liability for providing network related services, and failure could result in a breach of the Service Level Agreement. This can lead to fines or lawsuit. It’s also another reason to avoid downtime.
Loss of customer trust
Whether you are in retail business or airline company, network downtime can massively affect your customer base. It has a direct effect on your revenue because a dissatisfied customer quickly moves to a competitor.
Conclusion
To avoid the costly implications of downtime, get the visibility and insight needed to deal with sluggish performance, unexpected outages, security issues and network failures. Find out more about Cubro’s network visibility products which offer reliable and scalable solutions through applications like smart filtering based on higher layer – up to application layer (L7), monitoring, load balancing, aggregation, and metadata extraction which result in improved operational efficiency and network performance.