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The average cost of network downtime and outage is over a million dollars.

This is a fact for large enterprises and have been found true through the findings of a study of the cost of server, application and network downtime conducted by IHS in 2015 and have been released in early 2016.

The company surveyed 400 of its mid-size to large size-clients throughout North America about their decision-makers’ information and communication technology (ICT) downtime troubles. Their mid-size companies have approximately $100 million in revenues and 500 employees; large-size companies average 13,000 employees and almost $2 billion revenue.

These companies have an average of five downtime events each month and this results in losses in employee productivity and revenue and of course the costs to fix the downtime issues.

Click here to learn how the preventive maintenance feature of managed IT services can result in zero downtime.

Downtime causes

IHS reports that the biggest factor in downtime are network interruptions. And what causes these interruptions? Where is the costly downtime cost really coming from?

Matthias Machowinski, research director for enterprise networks and video at IHS, said in an interview that equipment is the major source of overall downtime, as measured in hours. According to Machowinski, equipment failures and other equipment problems contribute to almost 40% of all reported downtime. Service provider problems and internal human errors each make up close to 25% of downtime and cybersecurity issues contribute to about 10% of all downtime.

Reducing IT downtime

The most popular technique to reduce downtime is through network-monitoring implementations. Another popular technique and is especially recommended by Machowinski is incorporating more redundancy into networks. This can solve both on-premise equipment failures and problems with hosted service providers.

There are a number of other things that organizations can do and are doing besides these techniques to further decrease downtime. Small to mid-size business who do not have a whole IT department that can take care of network monitoring implementations can opt to get a managed services provider which offers exactly that and much more. These MSPs also provide a monitoring and maintenance plan on all network equipment to ensure they won’t cause any network interruption. Increased reliance on backup processes with a solid data recovery plan is another proven way for downtime mitigation as well. 

As Machowinski said, “You really need to have a multi-pronged strategy [and] understand the effects of downtime and the importance of creating equipment that minimizes downtime within ICT nfrastructure. Downtime is a serious issue that companies really need to take a hard look at, and I think it’s a good example of where a small investment can have such tremendous benefits to a company.”



We can help remove your company’s IT downtime troubles with an IT solution specifically tailored to your network needs. Click below to book your network assessment and let our seasoned system engineers take a look at the state of your network and design your solution.