Information and communication technology downtime is costing North American organizations $700 billion per year, IHS said Monday, citing results of its latest survey.
In its latest The Cost of Server, Application, and Network Downtime: North American Enterprise Survey and Calculator, IHS said, network interruptions are the biggest culprit of downtime.
This issue had impacted applications, servers and devices by not allowing them to communicate with each other when the network is down.
On average, survey respondents experience 5 downtime events per month, and 27 hours of downtime per month.
IHS also noted that the main cost of downtime is lost productivity and revenue.
“Our research found that the cost of ICT downtime is substantial, from $1 million a year for a typical mid-size company to over $60 million for a large enterprise,” said Matthias Machowinski, research director for enterprise networks and video at IHS.
“Fixing the problem is a minor cost factor, which means a small investment in increasing the reliability of ICT systems will provide an outsized return by reducing productivity and revenue losses,” Machowinski added.
Further, IHS noted that organizations are taking measures to lessen the downtime impact by investing in early-detection capabilities, improving redundancy, training and hiring new people, and implementing backup processes that don’t rely on ICT systems.