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How Much Is Network Downtime Costing Businesses Today? Infonetics Report and Calculator


Boston, MASSACHUSETTS (February 2, 2015)—Technology market research firm Infonetics Research, now part of IHS, Inc. (NYSE: IHS), conducted in-depth surveys with 205 medium and large businesses in North America and discovered that companies are losing as much as $100 million per year to downtime related to information and communication technology (ICT).

Infonetics’ survey, The Cost of Server, Application, and Network Downtime, explores the frequency, length, cost and causes of ICT downtime, including those related to the network, security, servers, applications and devices.

To help IT managers calculate the impact of downtime at their own organizations, Infonetics developed a customizable Downtime Calculator that computes the cost of both outages and degradations by type and source.

“Businesses participating in our ICT downtime survey are losing almost $4 million a year to downtime on average, about half a percent of their total revenue,” said Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research.

“Fixing the downtime issue is the smallest cost component. The real cost is the toll downtime takes on employee productivity and company revenue, illustrating the criticality of ICT infrastructure in the day-to-day operations of an organization,” Machowinski added.


  • The most common causes of ICT downtime are failures of equipment, software and third-party services; power outages; and human error
  • Infonetics’ respondent organizations experience an average of two outages and four degradations per month, with each event lasting around six hours
  • Businesses’ top strategies for reducing ICT downtime include implementing network monitoring to speed discovery of outages, building more redundancy into systems and training and hiring staff


Infonetics’ 21-page ICT downtime survey and downtime calculator explore the frequency, length, cost and causes of outages and service degradations related to the network, security, servers, applications and devices. The survey and calculator compute productivity losses, revenue losses, and losses stemming from fixing the problem. The calculator enables businesses, equipment vendors and service providers to model the cost of downtime based on demographics, cost structure and downtime profile. To purchase the survey and calculator, contact Infonetics:


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  • N. America (West), Asia Pacific: Larry Howard,, +1-408-583-3335
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IHS (NYSE: IHS) is the leading source of insight, analytics and expertise in critical areas that shape today’s business landscape. Businesses and governments in more than 150 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs about 8,800 people in 32 countries around the world.

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About Infonetics Research (

Infonetics Research, now part of IHS (NYSE: IHS), is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete more effectively. Follow Infonetics on Twitter for the latest headlines:

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"The real cost is the toll downtime takes on employee productivity and company revenue."

Matthias Machowinski, Directing Analyst
Enterprise Networks and Video


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