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One in Four Companies Never Test Their Disaster Recovery Plan

Nearly 30 percent of organizations lost business revenue due to an outage in the last 12 months

While 95 percent of organizations have a disaster recovery plan in place, 23 percent never test their plan, according to a new survey from Spiceworks.

A lack of testing and coverage gaps within disaster recovery plans may be leading to service outages in many organizations

Among those that don’t test their plan, 61 percent cited inadequate time, 53 percent cited inadequate resources, and 34 percent said disaster recovery is not a priority in their organization. The findings indicate a lack of testing and coverage gaps within disaster recovery plans may be leading to service outages in many organizations.

“Even the best laid disaster plans can go awry, especially if no one bothers to test them,” said Peter Tsai, Senior Technology Analyst at Spiceworks. “Ideally, a company’s disaster recovery plan should evolve and improve over time as weaknesses are exposed during testing and an organization’s needs change. However, the results show testing is often infrequent or not taking place at all, leaving many organizations vulnerable when disaster strikes.”

Larger Organizations Are More Likely to Experience Service Outages

In the last 12 months, 77 percent of organizations reported experiencing at least one outage (i.e. any interruption to normal levels of IT-related service). More specifically, 59 percent of organizations experienced one to three outages, 11 percent experienced four to six outages, and 7 percent experienced seven or more outages in the last 12 months.

Larger companies, which tend to rely on a greater number of services, experienced more outages than their smaller counterparts. 87 percent of large businesses large businesses with 1,000 or more employees experienced one or more outages in the last 12 months, compared to 79 percent of mid-size businesses with 100 to 999 employees, and 71 percent of small businesses with less than 100 employees.

Across all company sizes, 27 percent of organizations that experienced an outage reported losing business revenue as a result. Although 59 percent of organizations estimated losing less than $10,000 in revenue in the last 12 months, 31 percent estimated a loss of $10,000 to $100,000, and 10 percent reported losing $100,000 or more.

Power Outages and Internet Connectivity Issues Most Frequently Lead to Service Outages

The top causes leading to service outages in the last 12 months were power outages (56 percent), internet connectivity issues (48 percent), and hardware failure (32 percent), likely because less than half of organizations have backup power sources, redundant internet service providers, or high availability / failover systems in place.

Additionally, 27 percent of organizations experienced an outage due to service issues with a third-party vendor, while 21 percent experienced an outage due to human error and 13 percent due to natural disasters. Breaking down the types of natural disasters that led to outages, 29 percent were hurricanes, 16 percent were fires, 15 percent were floods, and 12 percent were due to either a tornado, animal-related incident, or blizzard.

Methodology: The survey was conducted in August 2018 and included 762 respondents from organizations across North America and Europe. Respondents are among the millions of IT professionals in Spiceworks and represent a variety of company sizes, including small-to-medium-sized businesses and enterprises. Respondents come from a variety of industries, including manufacturing, healthcare, nonprofits, education, government, and finance.

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One in Four Companies Never Test Their Disaster Recovery Plan

Nearly 30 percent of organizations lost business revenue due to an outage in the last 12 months

While 95 percent of organizations have a disaster recovery plan in place, 23 percent never test their plan, according to a new survey from Spiceworks.

A lack of testing and coverage gaps within disaster recovery plans may be leading to service outages in many organizations

Among those that don’t test their plan, 61 percent cited inadequate time, 53 percent cited inadequate resources, and 34 percent said disaster recovery is not a priority in their organization. The findings indicate a lack of testing and coverage gaps within disaster recovery plans may be leading to service outages in many organizations.

“Even the best laid disaster plans can go awry, especially if no one bothers to test them,” said Peter Tsai, Senior Technology Analyst at Spiceworks. “Ideally, a company’s disaster recovery plan should evolve and improve over time as weaknesses are exposed during testing and an organization’s needs change. However, the results show testing is often infrequent or not taking place at all, leaving many organizations vulnerable when disaster strikes.”

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In the last 12 months, 77 percent of organizations reported experiencing at least one outage (i.e. any interruption to normal levels of IT-related service). More specifically, 59 percent of organizations experienced one to three outages, 11 percent experienced four to six outages, and 7 percent experienced seven or more outages in the last 12 months.

Larger companies, which tend to rely on a greater number of services, experienced more outages than their smaller counterparts. 87 percent of large businesses large businesses with 1,000 or more employees experienced one or more outages in the last 12 months, compared to 79 percent of mid-size businesses with 100 to 999 employees, and 71 percent of small businesses with less than 100 employees.

Across all company sizes, 27 percent of organizations that experienced an outage reported losing business revenue as a result. Although 59 percent of organizations estimated losing less than $10,000 in revenue in the last 12 months, 31 percent estimated a loss of $10,000 to $100,000, and 10 percent reported losing $100,000 or more.

Power Outages and Internet Connectivity Issues Most Frequently Lead to Service Outages

The top causes leading to service outages in the last 12 months were power outages (56 percent), internet connectivity issues (48 percent), and hardware failure (32 percent), likely because less than half of organizations have backup power sources, redundant internet service providers, or high availability / failover systems in place.

Additionally, 27 percent of organizations experienced an outage due to service issues with a third-party vendor, while 21 percent experienced an outage due to human error and 13 percent due to natural disasters. Breaking down the types of natural disasters that led to outages, 29 percent were hurricanes, 16 percent were fires, 15 percent were floods, and 12 percent were due to either a tornado, animal-related incident, or blizzard.

Methodology: The survey was conducted in August 2018 and included 762 respondents from organizations across North America and Europe. Respondents are among the millions of IT professionals in Spiceworks and represent a variety of company sizes, including small-to-medium-sized businesses and enterprises. Respondents come from a variety of industries, including manufacturing, healthcare, nonprofits, education, government, and finance.

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IT outages, caused by poor-quality software updates, are no longer rare incidents but rather frequent occurrences, directly impacting over half of US consumers. According to the 2024 Software Failure Sentiment Report from Harness, many now equate these failures to critical public health crises ...

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In today's fast-paced digital world, Application Performance Monitoring (APM) is crucial for maintaining the health of an organization's digital ecosystem. However, the complexities of modern IT environments, including distributed architectures, hybrid clouds, and dynamic workloads, present significant challenges ... This blog explores the challenges of implementing application performance monitoring (APM) and offers strategies for overcoming them ...

Service disruptions remain a critical concern for IT and business executives, with 88% of respondents saying they believe another major incident will occur in the next 12 months, according to a study from PagerDuty ...

IT infrastructure (on-premises, cloud, or hybrid) is becoming larger and more complex. IT management tools need data to drive better decision making and more process automation to complement manual intervention by IT staff. That is why smart organizations invest in the systems and strategies needed to make their IT infrastructure more resilient in the event of disruption, and why many are turning to application performance monitoring (APM) in conjunction with high availability (HA) clusters ...

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