New industry research reports that businesses lose an average of about $5,000 per minute in an outage. At that rate, $300,000 per hour is not something to dismiss lightly.
managers and CTOs already know that system downtime can be very expensive for
an enterprise, but it's possible they may not know the real extent of that
expense when servers, networking and storage suffer a major outage.
research from Emerson Network Power released this week at the Uptime Institute Symposium
Santa Clara, Calif., reported that businesses lose an average of about $5,000
per minute in an outage. At that rate, $300,000 per hour is not something to
entitled "Understanding the Cost of Data Center Downtime: An Analysis of
the Financial Impact of Infrastructure Vulnerability," was based on a
recent Ponemon Institute study, "Calculating the Cost of Data Center
Outages." The research analyzed costs at 41 data centers in varying
industry segments; the data centers studied were a minimum of 2,500 square
feet, so as to identify the true bottom-line costs of data center downtime.
this study to provide an analysis of the direct, indirect and opportunity costs
from data center outages. This takes in a lot more than lost customer sales.
Factors include the damage to mission-critical data, impact of downtime on
organizational productivity, legal and regulatory repercussions, and lost
confidence and trust among key stakeholders.
include the following:
- The average
cost of data center downtime across industries was approximately $5,600
average reported incident length was 90 minutes, resulting in an average
cost per incident of approximately $505,500.
- For a
total data center outage, which had an average recovery time of 134
minutes, average costs were approximately $680,000.
- For a
partial data center outage, which averaged 59 minutes in length, average
costs were approximately $258,000.
be even more costly for enterprises with revenue models that depend on the data
center's ability to deliver IT and networking services to customers-such as
telecommunications service providers and e-commerce companies. The report cited
the highest cost of a single event at about $1 million (more than $11,000 per
increase in reliance on IT systems to support business-critical applications, a
single downtime event now has the potential to significantly impact the
profitability-and in extreme cases, the viability-of an enterprise," said
Larry Ponemon, chairman and founder of the Ponemon Institute, a research center
focused on privacy, data protection and information security policy.
A 2010 Ponemon
Institute study, also commissioned by Emerson, surveyed more than 450
U.S.-based data center professionals and focused on the root causes and
frequency of data center downtime.
experienced 2.5 complete data center outages during the past two years, the
report said. Partial data center outages, or those limited to certain racks,
occurred 6.8 times in the same time frame. The estimated number of device-level
outages, or those limited to individual servers, was the highest at 11.3.
that survey most frequently cited uninterruptible power supply battery failure
(65 percent), exceeding UPS capacity (53 percent), accidental emergency power
off/human error (51 percent), and UPS equipment failure (49 percent) as the
causes of unplanned data center outages.
Emerson-Ponemon Institute report is available