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Network Disruptions: A Billion-Dollar Headache

By Dennis McCafferty on 2010-11-03


While more than eight in 10 CIOs and other IT executives say they have solid plans to keep their enterprise infrastructure running in the event of a major network disruption, these plans fall short when an actual outage occurs. This according to the CDW Business Continuity Report. The report is based on a survey of some 200 IT managers in the U.S. conducted by technology solutions provider CDW. The report reveals that enterprises polled are routinely experiencing network outages lasting more than four hours. The study estimates that U.S. businesses, collectively, lost $1.7 billion in profits last year as a result of network disruptions that lasted four hours or more. “The data and communications network is the foundation of most businesses today,” says Jeff Godlewski, a CDW technology specialist who helped compile the report. “Damage it, and the business is temporarily crippled — or worse. Most businesses take measures to protect themselves from a network outage but still face disruptions for myriad reasons — loss of power, loss of telecom services, cyber-security attacks, natural disasters and more.” And, even while a large majority of senior IT managers feel that improving their business continuity/disaster recovery resources would improve the situation, only a clear minority actually plan to launch such an effort. Here are more revealing findings:

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97 percent of businesses suffered detrimental effects from network disruptions over the last year.

25 percent of businesses experienced a network disruption of four hours or more within the last 12 months.

$1.7 billion is the estimated collective loss in profits for U.S. businesses due to network disruptions lasting four hours or more within the last year.

57 percent of businesses report productivity loss as the top negative effect of these disruptions.

34 percent of businesses report that lost customer communications is a major negative effect of network disruptions.

30 percent of these companies indicate a total business shutdown is a major negative factor caused by network disruptions.

22 percent of businesses say lost employee communications is a top negative factor with network disruptions.

14 percent of businesses say data loss is a significant negative effect of network disruptions.

32 percent of disruptions were caused by a loss of power.

29 percent of disruptions were caused by hardware failure.

21 percent of the disruptions were caused by a loss of telecomm services to facilities.

6 percent of disruptions were caused by a cyber-security attack.

53 percent of businesses say employees are instructed or allowed to work from home when a network disruption is anticipated.

Only one-third of businesses activate standby communications and network systems to support remote access — despite the “work from home” backup plans.

Less than four in 10 employees were able to telework during a recent network outage.

82 percent of respondents say disruptions could have been reduced or avoided by implementing a comprehensive business continuity/disaster recovery (BC/DR) plan.

Yet, only 34 percent of businesses plan to update their BC/DR plan.

30 percent of businesses plan to improve network connectivity to avoid network disruptions.

22 percent of businesses plan to take proactive, preventative measures in the event of a foreseeable disruption.

18 percent of businesses plan to increase remote access for employees.

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