These are reflected in a variety of cost consequences, which include:
– Detection cost: initial discovery and subsequent investigation of the outage.
– Containment cost: preventing an outage from spreading or causing greater disruption.
– Recovery cost: getting your networks and core systems back to a state of readiness.
– Ex-post response cost: after-the-fact incidental costs.
– Equipment cost: for new equipment purchases, repairs and refurbishment.
– IT productivity loss: lost time and related expenses associated with IT personnel downtime.
– User productivity loss: lost time and related expenses associated with end-user downtime.
– Third-party cost: for contractors, consultants and specialists engaged to resolve the outage.
– Lost revenue: customers’ inability to access core systems during the outage period.
– Business disruption: reputational damage, customer churn and lost business opportunities.
According to research from the Ponemon Institute, in its third “Cost of Data Center Outages” report, the total cost of downtime has continued to rise over the last six years. Since 2010, on average the cost of downtime has risen 38% to $740,357 per incident, which is equal to nearly $9,000 per minute (ranging from $926 – $17,244 per minute).
When you break this down, direct costs account for 36%, indirect costs for 51% and opportunity costs for 12%, with the majority of costs deriving from business disruption ($16,125,669 per incident), lost revenue ($13,141,737 per incident) and end-user productivity ($8,706,159 per incident).
Just take a second to consider the implications for your business. If you experienced 16 data centre outages a year, each costing an average of $740,357, that’s over $11.8 million.