TelePacific Blog: Telecommunications Insights

Uptime and the Bottom Line

If your company is similar to most small to mid-sized business today, its employees have experienced the sense of loss and helplessness when a network or important application temporarily “goes down.” Even if a company hasn’t suffered a total network outage, it’s easy to understand how even just email being down for as little as an hour can negatively impact customer service, hamper internal communications or halt a project altogether. Even more stressful is when outages happen right before that important deadline.

While employees must deal with the stress and anxiety of an outage, the company overall feels the bite in the bottom line. According to a recent report from Aberdeen Group, for instance, the average cost of downtime for the typical mid-sized company (with revenues between $50 million and $1 billion) is a whopping $215,638 per hour. For smaller companies with revenue of less than $50 million, the damage is significantly less but still a significant $8,581 per hour of downtime, on average.

Counted as a combination of labor costs and revenues lost, those numbers grow even more daunting when considering that the poorest performing companies of any size, when it comes to business continuity and disaster recovery efforts, averaged 3.92 downtime events during the past 12 months and each event lasted an average of 17.82 hours, show Aberdeen figures. It adds up to nearly $600,000 a year for a small business.

On the bright side, investments being made to ensure or improve business continuity and disaster recovery (BC-DR) are providing an encouraging return. Whereas the average amount of downtime per event for BC-DR adoption laggards was nearly 18 hours, businesses that have successfully deployed BC-DR capabilities experienced average downtime per event of 0.16 hours. And while laggards experienced nearly four events during the past 12 months, best-in-class adopters experienced just 0.56 events.

“Reducing the number of these events is the most important performance metric that can be measured,” writes Robert Brady, research director, IT infrastructure for Aberdeen and the study’s author.

The length of time it took laggards to recover from their most recent downtime event was a stressful 27.11 hours, compared to 1.13 hours for leading adopters of BC-DR solutions and resources.

What’s more, the study found that 43 percent of those best-in-class organizations reported a decrease of more than 90 percent in downtime events, while 20 percent experienced no downtime events since implementation. Companies across the board also enjoyed shorter durations per downtime and increases in critical application availability after a BC-DR implementation. Leading adopters enjoyed a 33 percent increase in critical app availability, while average performers saw a substantial increase of 20 percent in availability, as well.

Considering the price businesses pay for downtime, those reductions can represent a substantial chunk of hard savings. And with the help of TelePacific’s suite of BC-DR solutions, companies can put those dollars right back into the bottom line.

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