It's Not Downtime We Should be Worried About - It's Uptime
March 14, 2014

Ivar Sagemo
AIMS Innovation

Share this

Here's an eight-letter word, twice as bad as any four-letter word, that no business leader wants to hear: downtime. Today's businesses are far more dependent on IT services than ever, and that's true whether you're talking about internal IT services (like ERP) used to drive strategic operations, or external IT services used to satisfy client and customer demand.

Among the more daunting long-term potential consequences of downtime to the organization are these:

• Lost revenues because business couldn't be transacted. A recent Ponemon study tells us the average cost of downtime for US-based organizations is a stunning $5600/minute.

• Diminished brand strength, because the company is seen as unreliable. The same study suggests the average length of downtime was 90 minutes, leading to roughly $500K of costs per incident.

• Evaporating market share, because unhappy customers go to competitors.

Quite a mess in short. And it's a mess that's rapidly getting bigger. Aberdeen Group found that between 2010 and 2012, the cost per hour of downtime climbed an average of 65%!

Now, all of this is obvious in my own area of application performance monitoring (APM), and while downtime is a problem, there is a bigger issue, more subtle lurking just beneath the surface. When we believe everything is running smoothly but don't know something is wrong, that’s when the most damage happens.

For instance, suppose a BizTalk-based service is up and running in a holistic sense, but operating in a subtly inconsistent manner — difficult to detect — that leads to lost transactions from time to time. By this I mean occasionally lost e-mails, lost database entries, lost purchase orders, etc. Time spent by customers resending email and clients waiting or employees spending time looking for an invoice that has not come through – all of these cause more loss in productivity and reputation over a longer period of time.

According to Pricewaterhouse Coopers, the average organization, spends $120 searching for a lost document and wastes 25 hours recreating each lost document.* But what we don't know is how much productivity is lost through not knowing when a problem exists, searching for a file that is not lost at all. Waiting on document resends, searching for "missing" invoices or customer relationships that need to be repaired due to an apparent miscommunication because information is not flowing smoothly in a system all impact company efficiency and costs.

Application performance, and service uptime, can be affected by myriad factors — some as subtle as a gradual shortage of key computational resources. That's why it's important to find a way to granularly monitor your system. To have control and visibility over the problems that are happening so you can decide which ones to tackle is key.

Over time, I think we're going to see that kind of granular insight play a larger and larger role in APM as a field. But in the meantime, it's important to have a clear view of the information that flows throughout your organization so you can see any problem lurking out of sight.

Ivar Sagemo is CEO of AIMS Innovation.

Related Links:

* DocuSense Blog: How Much are Lost Documents Costing You?

Share this

The Latest

November 30, 2023

To help you stay on top of the ever-evolving tech scene, Automox IT experts shake the proverbial magic eight ball and share their predictions about tech trends in the coming year. From M&A frenzies to sustainable tech and automation, these forecasts paint an exciting picture of the future ...

November 29, 2023
The past few years have presented numerous challenges for businesses: a pandemic, rising interest rates, supply chain disruptions, and geopolitical conflict that sent shockwaves across the global economy. But change may finally be on the horizon. According to a recent report by Endava ... a majority of executives confirmed they are feeling optimistic about the current business climate, and as a result, are forecasting larger IT budgets, increased technology funding and rollout, and prioritized innovation in the coming year ...
November 28, 2023

Incident management processes are not keeping pace with the demands of modern operations teams, failing to meet the needs of SREs as well as platform and ops teams. Results from the State of DevOps Automation and AI Survey, commissioned by Transposit, point to an incident management paradox. Despite nearly 60% of ITOps and DevOps professionals reporting they have a defined incident management process that's fully documented in one place and over 70% saying they have a level of automation that meets their needs, teams are unable to quickly resolve incidents ...

November 27, 2023

Today, in the world of enterprise technology, the challenges posed by legacy Virtual Desktop Infrastructure (VDI) systems have long been a source of concern for IT departments. In many instances, this promising solution has become an organizational burden, hindering progress, depleting resources, and taking a psychological and operational toll on employees ...

November 22, 2023

Within retail organizations across the world, IT teams will be bracing themselves for a hectic holiday season ... While this is an exciting opportunity for retailers to boost sales, it also intensifies severe risk. Any application performance slipup will cause consumers to turn their back on brands, possibly forever. Online shoppers will be completely unforgiving to any retailer who doesn't deliver a seamless digital experience ...

November 21, 2023

Black Friday is a time when consumers can cash in on some of the biggest deals retailers offer all year long ... Nearly two-thirds of consumers utilize a retailer's web and mobile app for holiday shopping, raising the stakes for competitors to provide the best online experience to retain customer loyalty. Perforce's 2023 Black Friday survey sheds light on consumers' expectations this time of year and how developers can properly prepare their applications for increased online traffic ...

November 20, 2023

This holiday shopping season, the stakes for online retailers couldn't be higher ... Even an hour or two of downtime for a digital storefront during this critical period can cost millions in lost revenue and has the potential to damage brand credibility. Savvy retailers are increasingly investing in observability to help ensure a seamless, omnichannel customer experience. Just ahead of the holiday season, New Relic released its State of Observability for Retail report, which offers insight and analysis on the adoption and business value of observability for the global retail/consumer industry ...

November 16, 2023

As organizations struggle to find and retain the talent they need to manage complex cloud implementations, many are leaning toward hybrid cloud as a solution ... While it's true that using the cloud is not a "one size fits all" proposition, it is clear that both large and small companies prefer a hybrid cloud model ...

November 15, 2023

In the same way a city is a sum of its districts and neighborhoods, complex IT systems are made of many components that continually interact. Observability requires a comprehensive and connected view of all aspects of the system, including even some that don't directly relate to its technological innards ...

November 14, 2023

Multicasting in this context refers to the process of directing data streams to two or more destinations. This might look like sending the same telemetry data to both an on-premises storage system and a cloud-based observability platform concurrently. The two principal benefits of this strategy are cost savings and service redundancy ...