Skip to content
Contact technical expert

All Blogs | Network Technology: Best Practices | Cubro News | Cubro Product Update | Cubro Technology Trends | Cubro Use Case

The True Cost of Network Downtime and Outages for Businesses

  • 3 min read

In today’s digital landscape, enterprises and service providers rely on complex networks to manage vast amounts of data and ensure uninterrupted service. However, network outages and performance issues can have catastrophic consequences for businesses, leading to significant financial losses and operational setbacks.

The Importance of Network Visibility to Prevent Downtime

To minimize outages and performance issues, it is crucial for data centers and businesses to invest in network visibility solutions. By having complete visibility, companies can secure and manage growing network traffic demands, reduce Mean Time to Repair (MTTR), and boost productivity. According to a report by Gartner, the average hourly cost of downtime is estimated at $42,000 per hour for computer networks.

Key Statistics on the Cost of Network Downtime

  • 98% of organizations report that a single hour of downtime costs over $100,000.
  • 81% indicate that 60 minutes of downtime results in losses exceeding $300,000.
  • 33% of enterprises experience downtime costs between $1 million to $5 million per hour.

(Source: Information Technology Intelligence Consulting Research)

These staggering figures highlight the critical need for robust network monitoring and management tools to prevent costly network failures.

Major Consequences of Network Outages

  1. Loss of Credibility Network outages can severely impact a company’s reputation. A single outage could tarnish the trust built with customers and stakeholders, leading to a crisis. For example, several high-profile airline outages have resulted in significant brand damage. Without proper network management and failure prevention, businesses risk losing credibility in the marketplace.
  2. Decrease in Productivity Unplanned network failures disrupt business operations and reduce employee productivity. The productivity loss multiplies when network issues impact external vendors, partners, or customers. With effective network monitoring solutions, businesses can mitigate this risk and avoid significant losses in manpower and operational efficiency.
  3. Financial Liability Businesses offering network-related services face potential legal and financial liabilities due to service disruptions. Failure to meet Service Level Agreements (SLAs) may result in fines or lawsuits. Avoiding network downtime with network packet brokers and TAPs can save businesses from these costly repercussions.
  4. Loss of Customer Trust In industries like retail and aviation, network downtime directly affects customer trust and loyalty. A network outage not only disrupts services but also drives customers towards competitors, resulting in revenue loss. Network visibility tools help businesses avoid these issues by proactively identifying and addressing potential network threats.

How to Avoid the Costs of Downtime

To prevent the costly consequences of network downtime, it’s essential to have comprehensive network visibility. Cubro’s suite of network visibility solutions provides smart filtering, monitoring, load balancing, aggregation, and metadata extraction capabilities. Our products offer scalable and reliable solutions that improve operational efficiency and network performance.

By leveraging Cubro’s advanced technologies, businesses can effectively minimize downtime, enhance productivity, and maintain customer trust.

Learn more about Cubro’s network visibility products and how we can help your organization prevent network outages and secure long-term operational success.