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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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Ask an infrastructure team how confident they are in their ability to govern AI, and most will tell you they've got it handled. A recent survey of 406 IT decision-makers and platform engineering leaders found 86% expressing exactly that confidence. Ask the same group whether they have a formal written AI governance policy, and the number drops to 30%, according to Spacelift's Infrastructure Automation Report ...

In MEAN TIME TO INSIGHT Episode 27, Shamus McGillicuddy, EMA VP of Research, Network Infrastructure and Operations, and Parker Hathcock, EMA Research Director covering IT Service/Operations (ServiceOps), discuss observability unification in modern IT operations ... 

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

Two years ago, almost every customer conversation about AI started with the same questions: Which model should we use? What can it do? Is it ready for the enterprise? Today, those discussions have moved on. CIOs are far more interested in how to govern AI, integrate it with existing systems, prepare their workforce and make it part of everyday operations. The challenge is no longer to prove that AI can deliver value. It's instead about how to embed AI into the business in a way that's secure, scalable and delivers measurable outcomes ...

 

Two things happened to production incidents between 2023 and now, and they did not happen at the same speed. The first is that a class of dependency that barely existed three years ago now accounts for one incident in ten. Incidents disclosed by AI model and AI application providers rose from 1.7% of all disclosed unplanned incidents in 2023 to 10.7% in 2026 year to date, roughly a sixfold rise; that counts only incidents at AI companies themselves, so the true share is higher. The second is that the time to close an incident has not come down ...

When an AI assistant gives an incomplete or incorrect answer, teams often blame the model. They adjust prompts, switch models, increase context windows or test a new retrieval strategy. However the model may not be a problem. In many enterprise AI workflows, the problem begins inside the document-ingestion pipeline ...

If you talk to any security or observability teams right now, they're all fighting the same fire: their tooling was built to ingest X, but their sources are pumping Y and soon to be doing Z. The knee-jerk reaction is always the same: we need more platform. However, this reaction is wrong. Let me explain why, because the solution to this problem is foundational, not financial. Instead of hurling yet more money at the problem, make sure you've done what's needed upstream ...

Rapid AI adoption and the unique ways AI workloads operate is redefining the scope and structure of what these teams must deliver. This shift is forcing organizations to rethink how they manage scale, automation, and control, according to The State of SRE and Platform Engineering 2026, a new report from Dynatrace ...

AI is usually talked about as a software tool, but it also depends heavily on the network behind it. Whether a company is using AI for chatbots, automation, monitoring, analytics, or employee support, all of that information has to move across the network in a reliable and secure way. That means AI is not just an application decision. It is also an infrastructure decision. Before organizations rush into AI, they should ask a simple question: Is our network ready to support it? ...

Enterprise AI often lacks governed access to where business processes actually execute. Without that access, AI agents may be able to reason, but they cannot operate reliably across enterprise workflows. For AI agents to effectively carry out workflows, they will require integration-layer context and controls. Organizations can implement these prerequisites by providing AI with managed access to the middleware layer ...

Enterprise networks rarely behave the same way for very long. A routing adjustment in one region may unexpectedly alter application performance in another. A cloud migration may introduce hidden dependencies that go unnoticed until an outage occurs. All the while, the network is managed by several different teams, each of whom use different tool sets — and as a result, have different views of the network ... There’s usually an engineer who remembers why traffic fails over a certain way between sites, or which transparent firewall was added where. The problem is that human memory cannot scale alongside enterprise-scale networks ...

Ask an infrastructure team how confident they are in their ability to govern AI, and most will tell you they've got it handled. A recent survey of 406 IT decision-makers and platform engineering leaders found 86% expressing exactly that confidence. Ask the same group whether they have a formal written AI governance policy, and the number drops to 30%, according to Spacelift's Infrastructure Automation Report ...

In MEAN TIME TO INSIGHT Episode 27, Shamus McGillicuddy, EMA VP of Research, Network Infrastructure and Operations, and Parker Hathcock, EMA Research Director covering IT Service/Operations (ServiceOps), discuss observability unification in modern IT operations ...