The High Cost of “Unpredictable” IT Outages and Disruptions

By Curtis Ryan

High Costs of IT Outages

It is no secret that IT service outages and disruptions can cost companies anywhere from thousands up to millions of dollars per incident – plus significant damage to company reputation and customer satisfaction. In the most high profile cases, such as recent IT outages at Delta and Southwest Airlines, the costs can soar to over $150 million per incident (Delta Cancels 280 Flights Due to IT Outage). Quite suddenly, IT infrastructure performance can become a CEO level issue (Unions Want Southwest CEO Removed After IT Outage).

While those kinds of major incidents make the headlines, there are thousands of lesser known, but still just as disruptive to business, service level disruptions and outages happening daily in just about every sizeable enterprise.

The costs of these often daily occurring incidents, like an unexpected slowdown in response time of a key business application during prime shift, can have a significant cumulative financial impact that may not be readily visible in the company’s accounting system.

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