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BizReport : Internet : June 23, 2020

Study: Downtime costing businesses more

Having a website go down isn't a matter of it, it is a matter of when. The key, according to one new study, if having a plan in place for when a site goes dark and being able to implement that plan so that the business is back up and running quickly.

by Kristina Knight

Downtime costs brands in many ways, not the least of which is financially. According to new data out from Infrascale for about one-third of businesses, downtime has cost them in a loss of shoppers and another 17% say they've lost actual revenue because of a site going dark. What's more, nearly 20% of brands say their business is not prepared for a downtime situation because of already busy IT departments or a lack of time to research exactly what to do in case of a site going down.

"Customer retention is essential for business success," said Russell P. Reeder, CEO of Infrascale. "It can cost up to five times more to attract a new customer than to retain an existing one, and when customers leave, businesses lose out on vital profit and operational efficiencies. Especially in today's competitive environment, it's challenging enough to retain customers. With all the cost-effective solutions available, downtime shouldn't be a reason for concern."

Other interesting findings from the report include:

▪ 53% of businesses worry about software failures causing downtime
▪ 52% worry that cybersecurity will cause downtime
▪ 38% say hardware failure is cause for downtime concern
▪ 36% worry about human error causing downtime
▪ 30% worry about natural disasters causing downtime

Of those who have experienced downtime issues, about 10% say their per-hour costs was over $50,000, 25% say the cost per hour was between $20,001 and $40,000, and 27% say the cost was under $10,000 per hour.

"The downtime duration results may seem reassuring, but in today's challenging and fast-moving business environment, every second counts. Even if your company was down for minutes, just think of the reputational damage it can cause as well as real costs when data cannot be recovered. There is really no excuse these days for not backing up your data," said Reeder. "These survey results illustrate that there's plenty of room for improvement when it comes to business uptime. Organizations can benefit from application and server backup, ransomware mitigation, disaster recovery as a service (DRaaS), encryption, and state-of-the-art endpoint protection. Investments in such solutions enable them to avoid downtime and enjoy business continuity, which are essential for a growing and thriving business."

More Infrascale data can be accessed here.

Tags: business downtime, digital business, downtime, ecommerce, Infrascale, SMB tips, SMB trends, website downtime

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