Understanding the business impact and cost of IT outages | Network Management Solutions

Understanding the Cost of IT Outages

You insure your business, home, auto, life, health, maybe even purchase some sort of insurance for information technology.  Utilizing insurance as a tool to mitigate financial risk is common practice. Much of the insurance we purchase we don’t think twice about as we may be mandated to comply or it just makes good logical sense when considering the potential downside.

The same logic however many times does not seem to apply when considering what the cost of an IT outage means to a particular business and what the organization can do to better prepare to mitigate the risk.  Many small to mid-sized businesses knowingly have significant IT risks due to weak implementations and poor operational management and choose to act only when crisis erupts, deferring the obvious believing this is some how sensible.  Many times a major IT disruption severely impacts the business and its ability to operate for an extended period leading to both financial and long-lasting reputational harm.

Perhaps many businesses are not thinking about the daily cost of slow downs, minor outages, and other nuisances which make the staff and business inefficient.  There is a quantifiable cost and in most cases it far exceeds the cost to maintain the right equipment and operational support. Beyond that, proper maintenance ensures that the likelihood of major disruptions are significantly reduced.

Most small to mid sized businesses are experts in areas other then information technology.  Even organizations that properly fund IT initiatives may find it difficult to hire, retain and manage the area. Managed Services Providers can be a beneficial resource to expand technical expertise, oversee key areas, reduce the cost of operations while improving service levels.

For further information about how Network Management Solutions can assist your organization in improving services while effectively managing technology spend please contact us.

 

 

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