Businesses Losing $700 Billion a Year to IT Downtime, Says IHS
January 25 2016 - 9:01AM
Business Wire
Network Interruptions Are the Biggest Culprit
In its latest The Cost of Server, Application, and Network
Downtime: North American Enterprise Survey and Calculator, IHS Inc.
(NYSE: IHS) revealed that, in aggregate, information and
communication technology (ICT) downtime is costing North American
organizations $700 billion per year.
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View the full release here:
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The report explores the frequency, length, cost and causes of
ICT downtime experienced by North American organizations, such as
server, application, and network outages or degradations. It
includes a companion downtime calculator that enables the cost of
downtime to be modeled based on company demographics, cost
structure and downtime profile.
“Our research found that the cost of ICT downtime is
substantial, from $1 million a year for a typical mid-size company
to over $60 million for a large enterprise,” said Matthias
Machowinski, research director for enterprise networks and video at
IHS.
“The main cost of downtime is lost productivity and revenue.
Fixing the problem is a minor cost factor, which means a small
investment in increasing the reliability of ICT systems will
provide an outsized return by reducing productivity and revenue
losses,” Machowinski said.
DOWNTIME SURVEY HIGHLIGHTS
- Network interruptions are the biggest
culprit of downtime and have far-reaching consequences:
applications, servers and devices may all be working fine, but they
can’t communicate with each other when the network is down
- On average, survey respondents
experience 5 downtime events per month, and 27 hours of downtime
per month
- Organizations are making changes to
reduce the impact of downtime, from investing in early-detection
capabilities to improving redundancy, training and hiring new
people, and implementing backup processes that don’t rely on ICT
systems
ABOUT THE REPORT
For its network downtime survey and calculator, IHS interviewed
IT decision-makers at 400 medium and large organizations in North
America that use information and communication technology (ICT) —
ERP systems, databases, email, VoIP systems, etc. Respondent
organizations hail from a variety of industry verticals, led by
manufacturing and the financial services industry, both large
verticals and big adopters of ICT. Healthcare respondents also made
a significant contribution.
For more information, contact the sales department at IHS in the
Americas at +1 844 301 7334 or americasleads@ihs.com; in Europe,
Middle East and Africa (EMEA) at +44 1344 328 300 or
technology_emea@ihs.com; or Asia Pacific (APAC) at +604 291 3600 or
technology_APAC@ihs.com.
About IHS (www.ihs.com)
IHS (NYSE: IHS) is the leading source of insight, analytics and
expertise in critical areas that shape today’s business landscape.
Businesses and governments in more than 140 countries around the
globe rely on the comprehensive content, expert independent
analysis and flexible delivery methods of IHS to make high-impact
decisions and develop strategies with speed and confidence. IHS has
been in business since 1959 and became a publicly traded company on
the New York Stock Exchange in 2005. Headquartered in Englewood,
Colorado, USA, IHS is committed to sustainable, profitable growth
and employs approximately 8,600 people in 32 countries around the
world.
IHS is a registered trademark of IHS Inc. All other company and
product names may be trademarks of their respective owners. © 2016
IHS Inc. All rights reserved.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160125005188/en/
IHS Inc.Matthias Machowinski,
+1-617-914-0240matthias.machowinski@ihs.comorPress Team,
+1-303-305-8021press@ihs.com
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