Network Failures
Technology is great isn’t it? It’s propelled us from a workforce that was mired in redundant paperwork to streamlined offices that have access to more information available at any given moment than ever before. Except when it doesn’t work. And then you have employees getting cups of coffee and essentially waiting for the network to be up and running again.

Ever Wondered What Network Downtimes Actually Cost You?

A recent survey conducted of 200 smaller companies across North America and Europe was intended to calculate the losses incurred from an IT outage. What it found was more than $26.5 billion in revenue is lost each year from IT downtime, which translates to roughly $150,000 in losses annually for each business.

The IT Process Institutes Visible Ops Handbook reports that “80% of unplanned outages are due to ill-planned changes made by IT administrators or developers.” Getting to the bottom of the matter, the Enterprise Management Association reports that 60% of availability and performance errors are the result of misconfigurations; the little changes that are implemented to the environment and system configuration parameters all the time.

Network Downtime Costs to Employeees

Downtime costs impact employee productivity, which can be measured in terms of salaries, wages and benefits of workers that sit idle by system downtime. After a downtime event, investigative actions are often required to correct the damage. For example, IT operations might work overtime – at overtime rates – or temporary staff may be contracted to recover lost data and enter accumulated paper transactions. And, if customer satisfaction was damaged, a costly special marketing program may be necessary to win back customers.

One of the primary obstacles that is preventing organizations from investing in a disaster recovery policy is cost. The other issue is the perceived complexity of implementing a complete IT recovery plan. Many companies don’t fully understand the cost of not preparing, so as a result they are not willing to spend dollars to ensure disaster doesn’t occur or they can recover quickly from a disaster. Some smaller companies traditionally don’t fully understand the breadth of technology and how to implement it to the spectrum of problems that may come across their organization, because of cost and complexity.

Experts say that all businesses should diversify their IT infrastructure between on premise and cloud systems, much like a diversified personal financial portfolio. A strong example of the issue with no diversification is Amazon’s cloud failure, where businesses were crippled when they had all their infrastructure and data on Amazon’s cloud. Instead, businesses should use a combination of solutions. An example is the use of on premise IT infrastructure with cloud based storage and backup. In this manner, if one system experiences a disaster, the other will still be available to keep the business running.

KLH – Minneapolis IT Managed Services Provider

Cloud ServicesServer & Network MaintenanceBackup and RecoveryNetwork Security

Scott Johnson COO, KLH