Many organizations think that downtime events only cost them a few productive hours, especially if they are small and isolated. However, there is much more at stake when your systems go down. Customer satisfaction and loss of brand identity are just a few of the many losses that an organization can experience. A downtime event can cause a chain reaction of bad events – loss of sales and customers, decreased employee productivity, potential data loss, and ultimately loss of profitability.
While the severity of downtime events will vary, you will most likely be burdened with at least a few of these direct and indirect costs:
Gartner states that the average cost of downtime to an organization is $5,600 per minute. However, this is just an average and there is a large degree of variance based on company characteristics. A Gartner analyst states that downtime, at the low end, can be as much as $140,000 per hour, $300,000 per hour on average, and as much as $540,000 per hour at the high end.
Every extra hour of downtime causes direct and indirect expenses that are associated with the organization’s time to respond. Many don’t think of these as incurred costs but as you have all hands-on deck to remediate a downtime issue, these employees are being taken away from revenue generating projects. Here are a few areas that drive unexpected downtime expenditures:
Time to detection: Costs incurred from investigating and finding the root cause of an incident
Containing the event: Costs that are dedicated to preventing an outage from spreading or causing worse disruption
Disaster Recovery costs: Costs that are allocated to recovering data, bringing your network or systems back up and running
Hardware costs: The repurchase of any devices, equipment or hardware that were damaged during the outage
Post event response: Any incidental costs associated with disruption and recovery of core systems
Third party loss: These are the costs from bringing in contractors, consultants or service providers to help with the remediation of issues
Productivity loss: Productivity loss can be calculated in two ways, IT personnel downtime, those who stepped away from revenue generating projects to work on remediation, and end-user downtime, everyone else in the organization that were not able to complete daily operations.
During downtime events, organizations often lose valuable hours and profits because of their lack of visibility into the problem. For instance, if you aren’t monitoring your network devices and servers 24×7 and an event happens on a Saturday evening, you could possibly not know about the issue until Monday morning. The lack of visibility into network health can expand your time to resolution because you won’t know where the event started or what caused the issue.
When it comes to downtime, it’s imperative to have a plan of prevention. This is where a proactive model to IT management can shine in comparison to a reactive, break/fix approach. Smaller issues, like fan speed or disk space, are detected and remediated quickly, before they become larger downtime issues.
A more strategic approach to proactive IT can prevent and minimize downtime incidents, network outages and security events. Outsourcing your IT management is one way to ensure 24/7/365 visibility and control. Organizations get access to a trained team of engineers, acting as an extension of your internal IT team, 24/7/365. Downtime events can be handled immediately and effectively to ensure organizations never lose access to core systems. If you think your organization could benefit from having a trusted partner to become more proactive with your IT, contact Magna5 for help.
Many organizations think that downtime events only cost them a few productive hours, especially if they are small and isolated. However, there is much more at stake when your systems go down. Customer satisfaction and loss of brand identity are just a few of the many losses that an organization can experience. A downtime event can cause a chain reaction of bad events – loss of sales and customers, decreased employee productivity, potential data loss, and ultimately loss of profitability.
While the severity of downtime events will vary, you will most likely be burdened with at least a few of these direct and indirect costs:
Gartner states that the average cost of downtime to an organization is $5,600 per minute. However, this is just an average and there is a large degree of variance based on company characteristics. A Gartner analyst states that downtime, at the low end, can be as much as $140,000 per hour, $300,000 per hour on average, and as much as $540,000 per hour at the high end.
Every extra hour of downtime causes direct and indirect expenses that are associated with the organization’s time to respond. Many don’t think of these as incurred costs but as you have all hands-on deck to remediate a downtime issue, these employees are being taken away from revenue generating projects. Here are a few areas that drive unexpected downtime expenditures:
Time to detection: Costs incurred from investigating and finding the root cause of an incident
Containing the event: Costs that are dedicated to preventing an outage from spreading or causing worse disruption
Disaster Recovery costs: Costs that are allocated to recovering data, bringing your network or systems back up and running
Hardware costs: The repurchase of any devices, equipment or hardware that were damaged during the outage
Post event response: Any incidental costs associated with disruption and recovery of core systems
Third party loss: These are the costs from bringing in contractors, consultants or service providers to help with the remediation of issues
Productivity loss: Productivity loss can be calculated in two ways, IT personnel downtime, those who stepped away from revenue generating projects to work on remediation, and end-user downtime, everyone else in the organization that were not able to complete daily operations.
During downtime events, organizations often lose valuable hours and profits because of their lack of visibility into the problem. For instance, if you aren’t monitoring your network devices and servers 24×7 and an event happens on a Saturday evening, you could possibly not know about the issue until Monday morning. The lack of visibility into network health can expand your time to resolution because you won’t know where the event started or what caused the issue.
When it comes to downtime, it’s imperative to have a plan of prevention. This is where a proactive model to IT management can shine in comparison to a reactive, break/fix approach. Smaller issues, like fan speed or disk space, are detected and remediated quickly, before they become larger downtime issues.
A more strategic approach to proactive IT can prevent and minimize downtime incidents, network outages and security events. Outsourcing your IT management is one way to ensure 24/7/365 visibility and control. Organizations get access to a trained team of engineers, acting as an extension of your internal IT team, 24/7/365. Downtime events can be handled immediately and effectively to ensure organizations never lose access to core systems. If you think your organization could benefit from having a trusted partner to become more proactive with your IT, contact Magna5 for help.
With the emergence of “killware,” Magna5 urges all its customers to spring into action to ensure their networks are secure. Here are five ways we can help.
With the emergence of “killware,” Magna5 urges all its customers to spring into action to ensure their networks are secure. Here are five ways we can help.
BeCybersmart. Own your role in cybersecurity by becoming preparedness champions utilizing best practices in cybersecurity.
Learn how teaming with Magna5 can help your organization proactively monitor, detect and troubleshoot network problems before they impact business operations.
Hear stories how other companies are winning their battle to fight cybersecurity and ransomware attacks. You can stay ahead, too. In this webinar, you will learn insightful best practices in building an ironclad multi-layered security defense to stop bad actors in real-time.
Be on the offensive in protecting your unsecured endpoints with a six-point multi-tiered strategy defense.
Cyber threat intelligence is a critical security component needed to gain a deeper understanding of what’s happening inside and outside your network.
Network blind spots are dangerous. Learn how to gain visibility into your critical network components to improve network uptime and performance.
Be on the offense to protect your endpoints. Here are six pillars to gain an upper hand in providing real-time prevention, detection and response.
Learn how to quickly respond to hidden and emerging cyber threats with a fully managed detection and response defense.
Discover how managed detection and response helps you stay ahead of security risks by identifying and blocking both known and unknown cyberattacks.managed
Is malicious malware lurking inside your network without you even knowing it? Take action now by building a multi-tiered defense.
Read how Magna5 helps organizations improve their cybersecurity resilience with a multi-tiered security defense fully managed around the clock.
Let Magna5 help you improve your cybersecurity resilience with a multi-tiered security defense fully managed around the clock.
Discover the various types of IT network monitoring and the importance of full network visibility for better network performance.
Learn why real-time IT monitoring is the best approach to keep your network “always on” and performing at peak performance.
Proactively safeguard your network and endpoints using a three-step defense strategy to counter attacks before they penetrate your perimeter.
Build a strong Zero Trust authentication and verification strategy to limit unauthorized access from multiple entry points.
Magna5 helps organizations on-ramp cloud services and speed digital transformation to seize new business opportunities without the hassle.
Protect your MS365 accounts from data breaches and unauthorized access with these six essential security defense measures.
Through actionable Dark Web ID intelligence, Magna5 can let you know ahead of time if cybercriminals already have the keys to access your network.
The only way to stay ahead of growing cyber threats is to build an ironclad, multi-tiered defense. To win this fight, you have to be proactive and vigilant.
Through centralized patch management, Magna5 can seamlessly analyze vulnerabilities and distribute patches across your network companywide to reduce security downtime events
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