UK enterprises admit to availability gap costing $16 million a year

Research released by Veeam Software, a provider of availability for the always-on Enterprise, indicates that enterprises are still not paying enough attention to service availability.

Indeed, the Veeam Availability Report that questioned senior IT decisions-makers (ITDMs) across the globe, showed that 84 per cent of respondents admitted to suffering an ‘availability gap’ (the gulf between what IT can deliver and what users demand) - a two per cent increase on 2014.

This availability gap costs businesses up to $16 million a year in lost revenue and productivity. Furthermore, the loss of service has a negative impact on customer confidence and brand integrity (according to 68 per cent and 62 per cent of respondents respectively).

This figure of $16 million in lost revenue has risen despite almost all respondents saying that they have implemented tightened measures to reduce availability incidents - by $6 million in 12 months.

Some other key findings from the report were that in the UK specifically:

  • Organisations have increased their service level requirements to minimise application downtime (96 per cent of organisations have increased the requirements) or guarantee access to data (94 per cent) to some extent over the past two years, but the availability gap still remains.
  • The average cost of downtime for mission-critical applications is $100,266 per hour; for non-mission-critical applications, this cost is $40,376 per hour
  • 59 per cent of respondents revealed their organisations’ applications encounter unplanned downtime caused by IT failures, external forces or other factors up to ten times per year.
  • The main business driver for an organisation’s data centre modernisation is lower operational costs for IT (77 per cent)
  • 73 per cent of respondents felt application downtime or data loss will also negatively impact customer confidence and brand integrity

Image source: Shutterstock/Sergey Nivens