With so many companies today offering products, services, and applications over cloud-based networks, having a solid IT infrastructure matters more than ever. The time and money lost during a network outage go beyond inconvenience. For many businesses, a serious outage can inflict a blow that they might never recover from.
When networks go down, companies are often left scrambling to deal with a wide range of costly consequences. The lost time and money associated with downtime cause far more than an inconvenience; they can easily inflict a blow capable of driving a company out of business altogether.
The Gartner Group estimates that the average cost for a single minute of downtime is around $5600. Thus, In the business environment, you should be thinking about IT downtime and its impacts. Therefore, in order to assist you in understanding how it can affect businesses like yours, we have gone through 5 far-reaching impacts it can have on every aspect of the business.
1. Productivity Losses
Every business today relies on online communications and services. Whether it’s email, virtual chat, or customer support, losing network access can put a stop to business. If you rely on cloud applications, you can be left waiting until service is restored. The bottom line is that salaries, rent, and other costs need to get paid even when your network is out.
2. Missed Opportunities
If you conduct your business online, loss of service means your customers can’t find you to purchase your services or products. If your business relies on being online, downtime makes it impossible to conduct business.
3. Damage to Your Brand
Downtime doesn’t just affect operations. It can also impact brand awareness and your reputation. Losing network access can cause immediate pain, lost productivity, and lost opportunities, along with long-term damage to your brand. If your customers have frequent issues with server outages, they won’t just stop buying from you; they’ll tell their friends.
4. Data Loss
Any server outage carries the potential for data loss. Files could be damaged or corrupted, and network failure can open the door to a cyberattack that can compromise data. Even losing just a portion of your data due to system failure can cripple your business.
5. Service Level Agreement Payouts
Some companies provide assurances that customers will have access to products and services when they need them.
SLA uptime contracts provide protection and carry specific language regarding payments in the event of an outage. You’ll receive compensation for the downtime, but it doesn’t repair the damage to your brand in your customer’s eyes.
System downtime can seriously impact a company’s operations, both in the short and long term. It makes sense, then, for every organization seeking a third-party data solution to partner with cloud and data center providers capable of delivering the highest levels of SLA uptime possible.
The potential consequences of server outages are far too great for most companies to consider, and as more business is conducted online, the costs are sure to increase over time.
As one of the leading Internet Service Providers with industry-best leased lines for dedicated business internet in India, Spectra has all your internet-related queries covered!