Adrian Johnson
TLDR:
- Unplanned downtime costs enterprises $400 billion annually, with hidden costs beyond revenue loss.
- Investing in AI and security, like observability, can prevent downtime incidents and reduce recovery time.
Downtime is a costly issue for enterprises, with a new report by Splunk revealing that the top 2,000 companies globally lose a combined $400 billion per year due to unplanned downtime. While known costs like revenue loss are significant, the report highlights hidden costs such as slower time to market and damaged brand reputations. The study, conducted in collaboration with Oxford Economics, analyzed the root causes of downtime and found human error to be the most common trigger.
Investing in AI and security measures, such as observability, emerged as crucial strategies to prevent downtime incidents. Companies identified as ‘resilience leaders’, who recover from downtime the fastest, invested significantly more in cybersecurity and observability. These organizations reported faster recovery times from incidents and ransomware attacks, showcasing the effectiveness of such investments.
According to Splunk, AI can act as an accelerant for companies, aiding in simplifying IT monitoring and identifying optimization opportunities to mitigate against downtime. The report also emphasized the importance of a unified approach to security observability and data management to enhance resilience and prevent costly downtime incidents.
Overall, the findings underscore the significance of proactive measures, like investing in AI and security tools, to minimize downtime costs and ensure business continuity in an increasingly digital landscape.
