The High Cost Of Cloud Service Provider Downtime

The High Cost Of Cloud Service Provider Downtime

The High Cost Of Cloud Service Provider Downtime

disaster-recovery-cloud

With so many businesses moving over the cloud, even just a few minutes of service provider downtime can have a massive effect not only on individual businesses, but on the economy as a whole. Over the last five years, there has been an estimated 568 hours of provider downtime, resulting in an economic impact of $71.7 million. The average business loses an average of $300,000 per hour in an outage, with brokerage firms missing out on approximately $6.5 million per hour. Clearly, it’s time to take a good look at your provider and decide if they are giving you the best possible service.

Of course, most providers issue Service-Level Agreement (SLAs) to their customers, but these agreements all too often give little more than an illusion of safety. Most providers state they have 99.95% availability and will pay out if they fall below that level, but as stated in this whitepaper, that number can be misleading. On one hand, this percentage could either be averaged out monthly or over the entire year, allowing a four hour outage once a year without payout. As stated earlier, that much downtime would cost the average business over a million dollars.

Clearly, relying on SLAs simply isn’t enough. Instead, the prudent end-user needs to do some in depth research before signing a contract with a provider. First steps naturally involve diving into the provider’s history of outages and how they were handled. Failure to follow best practices when responding to an outage is a good indication that problems in the future are likely to reoccur. One provider simply failed to switch over to backup generators in a power outage, prolonging the outage considerably. Such a failure suggests the provider has failed to have emergency procedures in place or has left improperly trained staff on duty, both of which don’t bode well for the future.

In an age of increasing frequency in natural disasters, many SLAs state that they are not responsible for any outages caused by factors outside their control. Hurricanes, floods, tornadoes, and earthquakes could shut data centers for an unacceptable amount of time with no payout from the SLA. If your SLA does not cover you for natural disasters, it’s important to make sure the provider has multiple data centers spread out geographically and can store backups of all your information.

And so it’s time to take a good look at our providers and decide if they really are the right match for us. While migrating to a different provider can be costly, in the end uptime is king. If someone else can guarantee fewer outages, higher levels of redundancy, and a faster response time when outages inevitably happen, the cost of migration pales in comparison. If you’re unsure how to proceed from here, be sure to read this paper, which breaks down uptime standards into six basic characteristics.

By Nick Kleeman

About CloudTweaks

Established in 2009, CloudTweaks is recognized as one of the leading authorities in connected technology information and services.

We embrace and instill thought leadership insights, relevant and timely news related stories, unbiased benchmark reporting as well as offer green/cleantech learning and consultive services around the world.

Our vision is to create awareness and to help find innovative ways to connect our planet in a positive eco-friendly manner.

In the meantime, you may connect with CloudTweaks by following and sharing our resources.

View All Articles

Sorry, comments are closed for this post.

The Most Powerful Free Cloudware Tools Available to Modern Businesses

The Most Powerful Free Cloudware Tools Available to Modern Businesses

5 Essential Cloud Tools for Your Innovative Business Why these cloudware tools are a must for any modern business Smart business owners are always on the lookout for ways to save money. One of the best ways is capitalising on some of the best free cloudware tools available to businesses. Sixty percent of small and medium…

Eventually Everything Will Wind Up In The Public Cloud

Eventually Everything Will Wind Up In The Public Cloud

The Public Cloud “Eventually everything will wind up in the public cloud.” Diane Greene, Google’s New Cloud Chief, May 6, 2016 “Private cloud is what most companies are adopting.” “No, public cloud is better and will dominate in the end.” “Nonsense, hybrid cloud is the way to go.” Need an answer? It’s in Manitoba! CIOs…

Are You Sure You Are Ready For The Cloud: Type of Cloud

Are You Sure You Are Ready For The Cloud: Type of Cloud

Type of Cloud Continuing this theme on “Are you ready for the Cloud”, we are going to move forward with a new question: What type a cloud? That can be encompassed with many different connotations. It could mean it’s going to be hosted by a provider, or is it going to be an on-prem cloud?…

Smart Umbrellas – Wearable, Portable and Stayable

Smart Umbrellas – Wearable, Portable and Stayable

They automatically open when it starts to rain. A rising tide lifts all boats. What does a deluge do? Lifts everything, docks, piers, boats and anyone standing in the way. IoT post the Consumer Electronic Show is no longer a rising tide it is a deluge. You can avoid a rising or surge tide unless…

Connecting Cars To The Cloud

Connecting Cars To The Cloud

The Cloud Connection Cars are becoming more and more connected. There are many YouTube videos of people seizing control of a car remotely and forcing it to operate in unexpected ways. But overall the reality of connection is good. As machines extend human functions we are better off. That said, I was thinking about automation…

New Smartphones From Apple, Samsung and HTC Promise To Light Up 2016

New Smartphones From Apple, Samsung and HTC Promise To Light Up 2016

New Smartphones from Apple, Samsung and HTC (Sponsored post courtesy of Verizon Wireless) The launch of the Galaxy S7 Edge at the Mobile World Congress in Barcelona during February was the first shot in a vintage year for mobile phones. The S7 is an incredible piece of hardware, but launches from HTC and Apple later in the…

Featured Sponsored Articles
How Successful Businesses Ensure Quality Team Communication

How Successful Businesses Ensure Quality Team Communication

Quality Team Communication  (Sponsored post courtesy of Hubgets) Successful team communication and collaboration are as vital to project and overall business success as the quality of products and services an organization develops. We rely on a host of business tools to ensure appropriate customer interactions, sound product manufacturing, and smooth back-end operations. However, the interpersonal relationships…

Featured Sponsored Articles
How To Develop A Business Continuity Plan Using Internet Performance Management

How To Develop A Business Continuity Plan Using Internet Performance Management

Internet Performance Management Planning CDN Performance Series Provided By Dyn In our previous post, we laid out the problems of business continuity and Internet Performance Management in today’s online environment.  In this article, we will take a look at some of the ways you can use traffic steering capabilities to execute business continuity planning and…

Featured Sponsored Articles

CloudTweaks is recognized as one of the leading influencers in cloud computing, infosec, big data and the internet of things (IoT) information. Our goal is to continue to build our growing information portal by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Sponsor