Network outages cost 2/5 of U.S. firms more than $1 million annually
June 11, 2020
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June 11, 2020 – More than half of senior IT decision-makers and network managers globally say they have had four or more network outages lasting more than 30 minutes in the past year, with outages costing half of the surveyed organizations worldwide between $300,000 and $6 million in downtime.
According to a recent study commissioned by Opengear (a Digi International company), nearly two-fifths (38%) of U.S. organizations reported losing more than $1 million in the past 12 months alone.
“Measuring the true cost of network outages”—Opengear’s study of 500 senior IT decision-makers—also discovered that U.S. businesses put significantly greater emphasis on network resilience than any other country surveyed. In fact, network resilience has become the top priority for 73% of U.S. IT departments, as well as 70% of U.S. companies at the board level. Globally, responses were at 49% and 47%, respectively.
“The true cost of a network outage is much more than just lost revenue,” said Opengear’s Steve Cummins. “Our survey found that reduced customer satisfaction was the biggest impact of an outage according to 41% of respondents, ahead of data loss [34%] and financial loss [31%].”
The study also found that while more than three quarters (78%) of organizations globally have set aside a specific budget to ensure network resilience, almost half (49%) had outages increase by 10% or more over the last five years. Outages were even more prevalent in the U.S., with nearly one-third (32%) reporting an increase of 25% or more. Additionally, more than four out of 10 (42%) U.S. businesses reported that network outages took more than one working day (on average) to find and resolve after they were reported, with an average of nearly 10 hours across the country.
With organizations running “geographically spread networks”, travel time to get engineers onsite has become the most-common challenge in resolving network issues quickly, according to more than two in five (41%) respondents globally and over half (52%) in the U.S. But the U.S. differs from other regions with the second-most common challenge, inadequate network monitoring (41%). Globally, companies reported a lack of in-house engineering capabilities (40%).
Additional information can be found in Opengear’s full research white paper.