ISLANDIA, N.Y., Dec. 9, 2010 /PRNewswire/ -- CA Technologies
(Nasdaq: CA) today announced the results of an independent study
revealing that North American businesses are collectively losing
$26.5 billion in revenue each year as
a result of slow recovery from IT system downtime. In fact,
such downtime reduces the average company's ability to generate
revenue by 29 percent.
The study quantifies the financial losses that occur when
businesses cannot quickly recover from service outages. Based
on results from 200 companies across North America, it reveals that the average
respondent suffers 10 hours of IT downtime a year—which translates
to more than 1.6 million* hours across North America.
During these periods of downtime, respondents estimate that
their ability to generate revenue is reduced by nearly a third (29
percent). Even after service is restored to critical systems,
businesses experience an additional 7.5 hours of compromised
operation because of the time it takes to recover lost data.
Across North America as a whole, that amounts to another 1.25
million** total hours of impaired business performance.
Respondents estimate that during this post-outage impairment,
their ability to generate revenue is still reduced by an average of
17 percent.
The study found that much of this considerable cost to
businesses and the economy can be avoided through better data
protection strategies that enable more rapid recovery of critical
services.
"IT organizations can't always prevent service outages, but they
can take the right steps to improve the speed of recovery when
outages occur," said Mike Crest,
general manager, Data Management, CA Technologies. "This will
become even more important as businesses become increasingly
dependent on both traditional and cloud IT services for the ongoing
generation of revenue."
The study also highlights significant differences across market
segments, such as financial services (where companies lost an
average of $224,297 per year) and the
public sector (with agencies losing only $99,094 per year). This was due to the
amount of revenue generated by those respective segments—since the
public sector experienced the highest amount of downtime (16.6
hours per year compared to the overall average of 10.0 hours).
Other key findings included:
- 71 percent of companies surveyed said that the IT services
affected by outages were mission-critical.
- The departments most likely to experience downtime were
operations (62 percent), finance (48 percent) and procurement (39
percent).
- Small companies suffer the most during periods of downtime,
showing the least ability to generate revenue (39 percent compared
to 19 percent for medium-sized companies and 28 percent for large
companies). A similar pattern emerged during recovery time
(23 percent for small companies, 11 percent for medium and 18
percent for large).
A parallel study was conducted across 11 European countries in
July 2010. A comparison of the
two studies shows that on average North American businesses lose
less revenue than their European counterparts ($159,331 vs. $349,014 per company). The primary reason
for this is that, although the two regions had a similar number of
outages per year (2.2 in North
America, 2.3 in Europe),
the duration of IT outages in Europe was longer. The total downtime
per outage (including time taken to recover the data) in
Europe was 10.3 hours—compared to
7.9 hours in North America.
For further information and materials from the survey, please
visit http://arcserve.com/us/lpg/cost-of-downtime.aspx. For
additional information about the CA ARCserve Family of Products,
please visit www.ARCserve.com.
* 1,661,321 hours
** 1,255,220 hours
About the study
The study was conducted by an independent research firm, Coleman
Parkes. All interviews were undertaken during November 2010. The study was based on a
total of 200 online interviews amongst CIOs/IT Directors/IT
Managers and a small proportion of COOs/Operations Directors across
an even split of small (50-499 employees), medium (500-999
employees) and large (1000+ employees) companies.
(Logo: http://photos.prnewswire.com/prnh/20100516/NY05617LOGO
)
About CA Technologies
CA Technologies (Nasdaq: CA) is an IT management software and
solutions company with expertise across all IT environments – from
mainframe and distributed, to virtual and cloud. CA
Technologies manages and secures IT environments and enables
customers to deliver more flexible IT services. CA Technologies
innovative products and services provide the insight and control
essential for IT organisations to power business agility. The
majority of the Global Fortune 500 relies on CA Technologies to
manage evolving IT ecosystems. For additional information,
visit CA Technologies at www.ca.com.
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Press Contacts
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Phone: (631) 342-6508
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SOURCE CA Technologies