5 Effects of a network failure

A survey on enterprise network reliability in 2021 found that 91% of respondents estimated that one hour of downtime costs their business €300,000 or more. 44% of respondents stated that the hourly cost of downtime now exceeds €1 million. An unexpected outage of your WAN/LAN can be very critical. If your network is down, you are no longer able to work with your IT, perform basic business functions such as inventory management in your stores, process online orders, update internal software and communicate with employees outside the office. For companies that don’t have a large IT department, an outage of individual network components can last for days. Here are just some of the possible effects of a network outage on a company:

1. lost revenue

If your network goes down, your business is also paralyzed. Customers won’t be able to check out, contact support or use your services. You may not be able to send invoices, process credit card payments or communicate with your customers to inform them of a problem, so they will have to contact another business. Research shows that 50% of customers abandon their online purchase if web pages don’t load within six seconds. What are the chances that customers will wait hours or days for your business to get back up and running?

2. website is taken hostage

Regardless of the size of your business, the reason for your network outage could be a cyber attack. Hackers try to take advantage of vulnerable systems. They often take down your network, hold your data or servers digitally hostage and demand a ransom. Last year, DDoS attacks increased by 341% and cost companies around 30,000 euros per hour. In addition, unexpected outages due to cyberattacks can completely erase data from your systems, making it almost impossible to recover this information.

3. damage to image

Network outages can give the impression that your company is unreliable. If customers can’t reach support or make appointments, they can’t rely on you to remain a customer. Don’t let an unreliable network affect customers’ image of your company.

4. loss of productivity

While your IT department is trying to get your network back up and running, your entire organization may be wasting valuable time that could be used for other business-critical tasks. In the event of an outage, you won’t be able to update software, run your CRM systems, analyze and send data, support customers or maintain other important business functions. You probably won’t even be able to get in touch with your employees to coordinate a plan to get you back online.

5 SLA penalties

Many companies give an availability guarantee for their network or services. In the event of unforeseen outages, compensation payments can be threatened. SaaS providers in particular are at great risk here. Slack, for example, guarantees its customers 99.99% availability and offers service credits if this standard is not met.

Conclusion

Don’t let network outages have a negative impact on your business. Make sure your network infrastructure is prepared for potential problems. With high-speed Dedicated Internet Access (DIA), cyber security and a team of experts to help you manage your network. Savecall and its partners provide reliable, dedicated and secure internet security solutions for businesses. We provide everything you need to keep your systems and networks online and avoid unnecessary downtime.