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Study: Hourly Cost of Application Downtime Nearly $68K

A new study puts the hourly cost of downtime for high-priority applications at $67,651 per hour.

The survey of 1,550 business leaders and IT decision makers in 22 countries was conducted earlier this year on behalf of data management specialist Veeam Software.

One question asked respondents to estimate their downtime costs per hour for high-priority applications and for normal applications. The cost for normal applications came to $61,642. Although in our all-data-all-the-time world, the amount of applications that respondents rated as high-priority was a whopping 51 percent.

Alongside those costs, the survey also tried to nail down the prevalence of data outages and reached some high numbers on that front as well. Nearly all organizations (95 percent) reported unexpected downtime, with one server in 10 having at least one outage per year.

When it comes to time, the average outage is 117 minutes, just a few minutes short of two hours.

As a company specializing in cloud-focused and virtualization-centric methods for backing up data and moving around workloads on the fly, Veeam posed a number of questions about where organizations were in their journey to having their business continuity infrastructure modernized.

For the purpose of the survey, Veeam defined legacy as tools designed to back up on-premises file shares and applications. The survey found that 40 percent of organizations were relying on legacy systems to protect their data.

Asked to pick defining aspects of a modern data management solution, respondents put Disaster Recovery as a Service (DRaaS) first. DRaaS was followed in descending order by the ability to move workloads from on-premises to cloud, the ability to move workloads from one cloud to another and the ability to automate recovery workflows/orchestration.

Lack of staff and lack of budget each counted as inhibitors to new initiatives for about 40 percent of respondents.

As for the factors that would drive organizations to change their primary backup solution, respondents most often cited the ability to improve the reliability of backups (39 percent) and reduced software or hardware costs (38 percent).

About two in five respondents reported that they planned to leverage cloud-based backup managed by a backup-as-a-service provider within the next two years.

Posted by Scott Bekker on June 02, 2020 at 8:52 AM


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