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9 Sep

When Network Downtime Costs Your Business $150 Million

When Network Downtime Costs Your Business $150 Million

One of the biggest news stories in August was when Delta experienced an internal outage followed by the failure of a backup system at one of its operations centers in Atlanta. The outage, which only lasted for five hours but had rippling effects, caused over 2,000 canceled flights over three days, stranded thousands of travelers, and led Delta to provide vouchers and refunds to many of the affected travelers.

Delta revealed the cost of that five-hour outage this week. The grand total? $150 million.

That number is staggering. But Delta isn’t the only one feeling the pain of an outage. Southwest’s outage in July also hurt the company’s bottom line, some estimating that it cost the organization $177 million.  According to a study by the Ponemon Institute, the average cost of a single data center outage today is about $730,000.

In our business, we spend our days hammering home the importance of end-to-end visibility of the digital infrastructure. We know that end users won’t stand for anything less than a perfect experience and even the slightest hiccup can cause them to switch to a competitor or lose interest entirely.

It’s a chance that businesses can’t take. Competition is increasing, initiatives are transforming, and organizations must stay current to keep up.

It seems that some are learning these lessons the hard way. As the business becomes more reliant on technology than ever before, there’s no room for failure -- at least, not without it costing big bucks.

To learn more about the importance of end-to-end visibility of your digital infrastructure, read how SevOne improves service delivery with integrated Metrics, Flows, and Logs.

jim melvin cmo sevone
Written by Jim Melvin
CMO

Jim joined SevOne after 20 years in leadership and CEO roles in software, hardware, and SaaS businesses. He served as CEO of AppNeta for 5 years, as well as 2 years as President and CEO at Mazu Networks. Jim has an extensive background in leading companies and marketing teams through various stages of growth. He has been awarded three U.S. patents in fault tolerant systems design.

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