Downtime across the Asia Pacific is costing businesses USD187 million, according to Splunk’s latest report.
The global report, titled The Hidden Costs of Downtime, produced in conjunction with Oxford Economics, underscores the direct and hidden costs of unplanned downtime, which pertains to any service degradation or outage of a business system.
Key findings from the report include:
- The total cost of downtime for Global 2000 companies amounted to USD400 billion annually, which means every minute of downtime costs an average of USD9,000;
- Lost of revenue is the biggest financial impact, calculated at USD49 million annually;
- Downtime can seriously harm customer loyalty, with 40% of CMOs revealing that downtime impacts customer lifetime value, and another 40% say it damages reseller and/or partner relationships; and
- 74% of technology executives experienced delayed time-to-market and 64% experienced stagnant developer productivity.
The report also shows that resilience organisations rebound from downtime 28% quicker than most, and 23% faster from cybersecurity incidents. Notably, investments tend to include embracing the benefits of artificial intelligence by embedding GenAI features in their tools at a rate 4x faster than others.
Meanwhile, the origins of downtime are reportedly due to security incidents like phishing attacks (56%) and stems from infrastructure issues like software failures (44%). However, human error is the leading cause of downtime and the biggest offender in both scenarios.
You can read the full report here.
