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The State of Digital Operations: Downtime Costs $1 Million Per Hour

Eric Sigler

Many organizations are struggling to resolve customer-impacting incidents quickly enough to preserve brand loyalty and revenue, according to PagerDuty's recent State of Digital Operations Report. Through a two-part survey of more than 300 IT personnel in development and operations, as well as over 300 consumers, the report also revealed a perception gap among those IT personnel who feel their organizations are properly equipped to support digital services, and revealed superiority in the use of DevOps practices to achieve the best IT outcomes.

DevOps is King

While digital services are adding extra pressure on developers and IT operations teams, many practitioners identified a number of processes and tools that help them prevent disruptions.

According to the report, DevOps reigns supreme among IT organizations that feel they are equipped to handle the rise in digital services.

Other best practices employed by these organizations include incident management and modern development methods like agile or continuous delivery.

Nearly one third of these organizations are also using ChatOps, or conversation-driven development, to help support digital services.

The Digital Services Expectation Gap

The survey of IT personnel in development and operations illustrated a gap between IT teams' ability to fix disruptions in digital services, and the performance consumers expect from these services. It found that consumer-impacting incidents take IT teams approximately double the amount of time consumers are willing to wait for a service that isn't working properly. According to the survey results, 69.2 percent of consumers will stop trying or even leave a digital app or service if it takes more than 15 minutes to resolve a service disruption (i.e., stops working or the service slows down).

Meanwhile, 38.4 percent of organizations take at least 30 minutes to resolve IT incidents that impact consumer-facing digital services, increasing the chances that customers will leave during the time it takes to get things back up and running.


As 59.8 percent of consumers surveyed use digital services to complete tasks such as banking, making dinner reservations or finding transportation at least one or more times daily, and 85.3 percent use these services at least one or more times a week, it's no surprise that consumer brand loyalty is heavily influenced by digital experiences.

But the impact of IT disruptions doesn't stop at the developer and IT operations teams responsible for managing infrastructure. Nearly one third of respondents (32.7 percent) reported that one hour of IT downtime costs their companies $1 million or more, meaning stakeholders in the lines of business –– ranging from finance to marketing to customer service –– are also facing difficulties due to the disruptions.

IT Readiness Perception vs. Reality

The survey also showed a misalignment between IT professionals' perception of their organizations' readiness to deploy, manage and maintain digital services, and the high frequency of consumer-facing IT incidents they currently face. Although 83.9 percent of IT personnel who took the survey felt confident that their IT organization is prepared to support digital services, 59.1 percent of those who identified as prepared to support digital services are still experiencing customer-impacting incidents (slowness or downtime) at least one or more times a week.

They cited increased complexity resulting in more cognitive load, an increase in the number of tools and increased difficulty in capacity planning (e.g., increase in volume of data) as the top operations challenges, illustrating how the rise in digital service offerings has created operations challenges for IT organizations.

Consumers' demands for digital services will continue to grow alongside their high expectations for flawless experiences. To prepare for this, organizations must gain a better understanding of the digital customer journey and employ the right combination of digital operations practices. By turning to DevOps, event management and modern incident management, organizations will be able to not only close the customer expectation gap, but exceed customer expectations.

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Like most digital transformation shifts, organizations often prioritize productivity and leave security and observability to keep pace. This usually translates to both the mass implementation of new technology and fragmented monitoring and observability (M&O) tooling. In the era of AI and varied cloud architecture, a disparate observability function can be dangerous. IT teams will lack a complete picture of their IT environment, making it harder to diagnose issues while slowing down mean time to resolve (MTTR). In fact, according to recent data from the SolarWinds State of Monitoring & Observability Report, 77% of IT personnel said the lack of visibility across their on-prem and cloud architecture was an issue ...

In MEAN TIME TO INSIGHT Episode 23, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses the NetOps labor shortage ... 

Technology management is evolving, and in turn, so is the scope of FinOps. The FinOps Foundation recently updated their mission statement from "advancing the people who manage the value of cloud" to "advancing the people who manage the value of technology." This seemingly small change solidifies a larger evolution: FinOps practitioners have organically expanded to be focused on more than just cloud cost optimization. Today, FinOps teams are largely — and quickly — expanding their job descriptions, evolving into a critical function for managing the full value of technology ...

Enterprises are under pressure to scale AI quickly. Yet despite considerable investment, adoption continues to stall. One of the most overlooked reasons is vendor sprawl ... In reality, no organization deliberately sets out to create sprawling vendor ecosystems. More often, complexity accumulates over time through well-intentioned initiatives, such as enterprise-wide digital transformation efforts, point solutions, or decentralized sourcing strategies ...

Nearly every conversation about AI eventually circles back to compute. GPUs dominate the headlines while cloud platforms compete for workloads and model benchmarks drive investment decisions. But underneath that noise, a quieter infrastructure challenge is taking shape. The real bottleneck in enterprise AI is not processing power, it is the ability to store, manage and retrieve the relentless volumes of data that AI systems generate, consume and multiply ...

The 2026 Observability Survey from Grafana Labs paints a vivid picture of an industry maturing fast, where AI is welcomed with careful conditions, SaaS economics are reshaping spending decisions, complexity remains a defining challenge, and open standards continue to underpin it all ...

The observability industry has an evolving relationship with AI. We're not skeptics, but it's clear that trust in AI must be earned ... In Grafana Labs' annual Observability Survey, 92% said they see real value in AI surfacing anomalies before they cause downtime. Another 91% endorsed AI for forecasting and root cause analysis. So while the demand is there, customers need it to be trustworthy, as the survey also found that the practitioners most enthusiastic about AI are also the most insistent on explainability ...

In the modern enterprise, the conversation around AI has moved past skepticism toward a stage of active adoption. According to our 2026 State of IT Trends Report: The Human Side of Autonomous AI, nearly 90% of IT professionals view AI as a net positive, and this optimism is well-founded. We are seeing agentic AI move beyond simple automation to actively streamlining complex data insights and eliminating the manual toil that has long hindered innovation. However, as we integrate these autonomous agents into our ecosystems, the fundamental DNA of the IT role is evolving ...

AI workloads require an enormous amount of computing power ... What's also becoming abundantly clear is just how quickly AI's computing needs are leading to enterprise systems failure. According to Cockroach Labs' State of AI Infrastructure 2026 report, enterprise systems are much closer to failure than their organizations realize. The report ... suggests AI scale could cause widespread failures in as little as one year — making it a clear risk for business performance and reliability.

The quietest week your engineering team has ever had might also be its best. No alarms going off. No escalations. No frantic Teams or Slack threads at 2 a.m. Everything humming along exactly as it should. And somewhere in a leadership meeting, someone looks at the metrics dashboard, sees a flat line of incidents and says: "Seems like things are pretty calm over there. Do we really need all those people?" ... I've spent many years in engineering, and this pattern keeps repeating ...

The State of Digital Operations: Downtime Costs $1 Million Per Hour

Eric Sigler

Many organizations are struggling to resolve customer-impacting incidents quickly enough to preserve brand loyalty and revenue, according to PagerDuty's recent State of Digital Operations Report. Through a two-part survey of more than 300 IT personnel in development and operations, as well as over 300 consumers, the report also revealed a perception gap among those IT personnel who feel their organizations are properly equipped to support digital services, and revealed superiority in the use of DevOps practices to achieve the best IT outcomes.

DevOps is King

While digital services are adding extra pressure on developers and IT operations teams, many practitioners identified a number of processes and tools that help them prevent disruptions.

According to the report, DevOps reigns supreme among IT organizations that feel they are equipped to handle the rise in digital services.

Other best practices employed by these organizations include incident management and modern development methods like agile or continuous delivery.

Nearly one third of these organizations are also using ChatOps, or conversation-driven development, to help support digital services.

The Digital Services Expectation Gap

The survey of IT personnel in development and operations illustrated a gap between IT teams' ability to fix disruptions in digital services, and the performance consumers expect from these services. It found that consumer-impacting incidents take IT teams approximately double the amount of time consumers are willing to wait for a service that isn't working properly. According to the survey results, 69.2 percent of consumers will stop trying or even leave a digital app or service if it takes more than 15 minutes to resolve a service disruption (i.e., stops working or the service slows down).

Meanwhile, 38.4 percent of organizations take at least 30 minutes to resolve IT incidents that impact consumer-facing digital services, increasing the chances that customers will leave during the time it takes to get things back up and running.


As 59.8 percent of consumers surveyed use digital services to complete tasks such as banking, making dinner reservations or finding transportation at least one or more times daily, and 85.3 percent use these services at least one or more times a week, it's no surprise that consumer brand loyalty is heavily influenced by digital experiences.

But the impact of IT disruptions doesn't stop at the developer and IT operations teams responsible for managing infrastructure. Nearly one third of respondents (32.7 percent) reported that one hour of IT downtime costs their companies $1 million or more, meaning stakeholders in the lines of business –– ranging from finance to marketing to customer service –– are also facing difficulties due to the disruptions.

IT Readiness Perception vs. Reality

The survey also showed a misalignment between IT professionals' perception of their organizations' readiness to deploy, manage and maintain digital services, and the high frequency of consumer-facing IT incidents they currently face. Although 83.9 percent of IT personnel who took the survey felt confident that their IT organization is prepared to support digital services, 59.1 percent of those who identified as prepared to support digital services are still experiencing customer-impacting incidents (slowness or downtime) at least one or more times a week.

They cited increased complexity resulting in more cognitive load, an increase in the number of tools and increased difficulty in capacity planning (e.g., increase in volume of data) as the top operations challenges, illustrating how the rise in digital service offerings has created operations challenges for IT organizations.

Consumers' demands for digital services will continue to grow alongside their high expectations for flawless experiences. To prepare for this, organizations must gain a better understanding of the digital customer journey and employ the right combination of digital operations practices. By turning to DevOps, event management and modern incident management, organizations will be able to not only close the customer expectation gap, but exceed customer expectations.

Hot Topics

The Latest

Like most digital transformation shifts, organizations often prioritize productivity and leave security and observability to keep pace. This usually translates to both the mass implementation of new technology and fragmented monitoring and observability (M&O) tooling. In the era of AI and varied cloud architecture, a disparate observability function can be dangerous. IT teams will lack a complete picture of their IT environment, making it harder to diagnose issues while slowing down mean time to resolve (MTTR). In fact, according to recent data from the SolarWinds State of Monitoring & Observability Report, 77% of IT personnel said the lack of visibility across their on-prem and cloud architecture was an issue ...

In MEAN TIME TO INSIGHT Episode 23, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses the NetOps labor shortage ... 

Technology management is evolving, and in turn, so is the scope of FinOps. The FinOps Foundation recently updated their mission statement from "advancing the people who manage the value of cloud" to "advancing the people who manage the value of technology." This seemingly small change solidifies a larger evolution: FinOps practitioners have organically expanded to be focused on more than just cloud cost optimization. Today, FinOps teams are largely — and quickly — expanding their job descriptions, evolving into a critical function for managing the full value of technology ...

Enterprises are under pressure to scale AI quickly. Yet despite considerable investment, adoption continues to stall. One of the most overlooked reasons is vendor sprawl ... In reality, no organization deliberately sets out to create sprawling vendor ecosystems. More often, complexity accumulates over time through well-intentioned initiatives, such as enterprise-wide digital transformation efforts, point solutions, or decentralized sourcing strategies ...

Nearly every conversation about AI eventually circles back to compute. GPUs dominate the headlines while cloud platforms compete for workloads and model benchmarks drive investment decisions. But underneath that noise, a quieter infrastructure challenge is taking shape. The real bottleneck in enterprise AI is not processing power, it is the ability to store, manage and retrieve the relentless volumes of data that AI systems generate, consume and multiply ...

The 2026 Observability Survey from Grafana Labs paints a vivid picture of an industry maturing fast, where AI is welcomed with careful conditions, SaaS economics are reshaping spending decisions, complexity remains a defining challenge, and open standards continue to underpin it all ...

The observability industry has an evolving relationship with AI. We're not skeptics, but it's clear that trust in AI must be earned ... In Grafana Labs' annual Observability Survey, 92% said they see real value in AI surfacing anomalies before they cause downtime. Another 91% endorsed AI for forecasting and root cause analysis. So while the demand is there, customers need it to be trustworthy, as the survey also found that the practitioners most enthusiastic about AI are also the most insistent on explainability ...

In the modern enterprise, the conversation around AI has moved past skepticism toward a stage of active adoption. According to our 2026 State of IT Trends Report: The Human Side of Autonomous AI, nearly 90% of IT professionals view AI as a net positive, and this optimism is well-founded. We are seeing agentic AI move beyond simple automation to actively streamlining complex data insights and eliminating the manual toil that has long hindered innovation. However, as we integrate these autonomous agents into our ecosystems, the fundamental DNA of the IT role is evolving ...

AI workloads require an enormous amount of computing power ... What's also becoming abundantly clear is just how quickly AI's computing needs are leading to enterprise systems failure. According to Cockroach Labs' State of AI Infrastructure 2026 report, enterprise systems are much closer to failure than their organizations realize. The report ... suggests AI scale could cause widespread failures in as little as one year — making it a clear risk for business performance and reliability.

The quietest week your engineering team has ever had might also be its best. No alarms going off. No escalations. No frantic Teams or Slack threads at 2 a.m. Everything humming along exactly as it should. And somewhere in a leadership meeting, someone looks at the metrics dashboard, sees a flat line of incidents and says: "Seems like things are pretty calm over there. Do we really need all those people?" ... I've spent many years in engineering, and this pattern keeps repeating ...