Top 5 Ways System Downtime Affects a Company

With so many companies today offering services and products over cloud-based networks, a dependable IT infrastructure is more crucial than ever. When a network goes down, companies are often left to muddle through a range of costly consequences. This downtime, however, is far more than merely an inconvenience; it can easily impose a punch worthy of driving a company out of business. Therefore, it is worthwhile to understand precisely how system downtime affects the operations of a company. 

Lost Profitability 

Businesses depend on online services and communication, so when network access is lost, workplace function comes to a standstill. While waiting for servers to come back online, employees are left with nothing to do; however, even if no meaningful work is completed during the downtime, labor and other operating costs must still be paid regardless of network availability.  

For manufacturing companies, system downtime may mean the production line is shut down. Not all organizations are equipped with the framework to continue running even after being disconnected. This affects the supply chain as delays in one area make for problems or delays in others. 

Lost Opportunities 

For organizations that do considerable business online, a loss of network service means customers will not be able to find them, let alone purchase products and services. When online sales dip, this equates to a loss of revenue. Furthermore, connecting with existing patrons will be unlikely, breaking down the chain of communication and customer relations.  

Customers expect a website to load within a couple of seconds, making even slow service unacceptable. For a company that depends a great deal on online sales to drive its business, system downtime can be incredibly distressing.   

Reputation Damage 

System downtime also affects a company’s reputation, and this can be even more detrimental than immediate issues such as lost productivity and opportunities. Damage to an organization’s reputation can create long-term effects. The more frequently clients experience server issues, the more likely they are to stop consuming a company’s products or services. Given the negative impacts of a server outage, even smaller businesses cannot afford this risk and seek more dependable solutions for their cloud infrastructure. 

They will also share their negative experiences with others, impacting a company’s profit, for it is happy customers who bring about new customers. Bad word of mouth can spurn potential clients and leave the company with an image to rebuild. This is no easy feat considering it takes winning back the public’s trust.  

Lost Data 

System downtime also carries the potential for data loss or exposure. Even though most service providers back up data, unforeseen issues can arise. Failures in security can create opportunities for cyberattacks, compromising valuable data. Files may be corrupted or damaged as well.  

Even if backed up, the inability to access data can create panic along with a loss of confidence a customer has in a company. Losing even a portion of their data resources can be a crippling blow for organizations that rely heavily on big data analytics.  

SLA Disbursements 

Customers want assurance that they will be able to access their products and services when needed, and in some cases, companies provide this through SLAs (Service-Level Agreements). SLAs contain specific language regarding financial remuneration in the event of a server outage.  

It is one thing for software problems within the company’s control to create system downtime, but it is another issue entirely when it results from a third-party cloud provider’s downtime. And while a company may be entitled to compensation, it may do little to mend the damage done to its reputation in customers’ eyes or make up for lost opportunities. 

Why Partner with Excipio Consulting?

How well prepared is your organization to recover from a technology outage? With our Disaster Recovery service, we develop a comprehensive, real-world, prioritized plan. that includes precise documentation. Take the first step and contact us or call us at (918) 357-5507 for more information on how your company can benefit from our Disaster Recovery Solutions.

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