INFOGRAPHIC
Splunk report shows downtime costs global 2000 companies US $ 400 billion annually
New global research reveals stock price can plunge up to 9 % after a single incident and take 79 days to recover .
Splunk , in collaboration with Oxford Economics , has released a new global report The Hidden Costs of Downtime , which highlights the direct and hidden costs of unplanned downtime .
The survey calculated the total cost of downtime for Global 2000 companies to be US $ 400 billion annually , or 9 % of profits , when digital environments fail unexpectedly . The analysis revealed the consequences of downtime go beyond immediate financial costs and
Europe and APAC hold the longest recovery times , while companies in Africa and the Middle East recover the fastest . take a lasting toll on a company ’ s shareholder value , brand reputation , innovation velocity and customer trust .
Unplanned downtime – any service degradation or outage of a business system – can range from a frustrating inconvenience to a life-threatening scenario for customers . The report surveyed 2,000 executives from the largest companies worldwide ( Global 2000 ) and showed downtime causes both direct and hidden costs as defined below :
• Direct costs are clear and measurable to a company . Examples of direct costs are lost revenue , regulatory fines , missed SLA penalties and overtime wages .
• Hidden costs are harder to measure and take longer to have an impact , but can be just as detrimental . Examples of hidden costs include diminished shareholder value , stagnant developer productivity , delayed time-to-market and tarnished brand reputation .
The report also highlighted the origins of downtime – 56 % of downtime incidents are due to security incidents such as phishing attacks , while 44 % stem
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