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

Follow Us!

CloudTweaks

Established in 2009, CloudTweaks.com is recognized as one of the leading authorities in cloud computing information. Most of the excellent CloudTweaks articles are provided by our own paid writers, with a small percentage provided by guest authors from around the globe, including CEOs, CIOs, Technology bloggers and Cloud enthusiasts. Our goal is to continue to build a growing community offering the best in-depth articles, interviews, event listings, whitepapers, infographics and much more...
Follow Us!
FacebookTwitterLinkedInGoogle+Share

Sorry, comments are closed for this post.

Join Our Newsletter

Receive updates each week on news, tips, events, comics and much more...

Popular

Top Viral Impact

Cloud Infographic: The Education Of Tomorrow

Cloud Infographic: The Education Of Tomorrow

Cloud Infographic: The Education Of Tomorrow  Online Education is a very exciting topic for many as it opens up many new doors and opportunities. We’ve touched on areas such as Massive Open Online Sources (MOOC) which provides tremendous levels of cloud based interconnectivity. We’ve taken a look into higher education,  the increased demand for online courses as well as

Cloud Infographic: Cloud Computing Growth

Cloud Infographic: Cloud Computing Growth

An excellent infographic provided by AwesomeCloud which predicts a continued high level of growth in the cloud computing industry. Potentially staggering numbers for Public Cloud IT Services of $100 Billion by 2016. Infographic Source: AwesomeCloud About Latest Posts Follow Us!CloudTweaksEstablished in 2009, CloudTweaks.com is recognized as one of the leading authorities in cloud computing information. Most of the

Cloud Infographic – Big Data Survey: What Are The Trends?

Cloud Infographic – Big Data Survey: What Are The Trends?

Jaspersoft Big Data Survey Shows Rise in Commitment to Projects and Decline in Confusion Nearly 1,600 Jaspersoft Community Members Participate in Second Jaspersoft Big Data Survey San Francisco, February 4, 2014 – Jaspersoft, the Intelligence Inside applications and business processes, today shared results from its Big Data Survey. Nearly 1,600 Jaspersoft community members responded to

Can I Contribute To CloudTweaks?

Yes, much of our focus in 2015 will be on working with other influencers in a collaborative manner. If you're a technology influencer looking to collaborate long term with CloudTweaks – a globally recognized leader in cloud computing information – drop us an email with “tech influencer” in the subject line.

Please review the guidelines before applying.

Whitepapers

Top Research Assets

HP OpenStack® Technology Breaking the Enterprise Barrier

HP OpenStack® Technology Breaking the Enterprise Barrier

Explore how cloud computing is a solution to the problems facing data centers today and highlights the cutting-edge technology (including OpenStack cloud computing) that HP is bringing to the current stage. If you are a CTO, data center administrator, systems architect, or an IT professional looking for an enterprise-grade, hybrid delivery cloud computing solution that’s open,

Public Cloud Flexibility, Private Cloud Security

Public Cloud Flexibility, Private Cloud Security

Public Cloud Flexibility, Private Cloud Security Cloud applications are a priority for every business – the technology is flexible, easy-to-use, and offers compelling economic benefits to the enterprise. The challenge is that cloud applications increase the potential for corporate data to leak, raising compliance and security concerns for IT. A primary security concern facing organizations moving

Hewlett-Packard Company On-Demand Webinar

Hewlett-Packard Company On-Demand Webinar

Shifting Workloads and the Server Evolution Learn more about the latest industry trends and the challenges customers are talking about. Every ten to fifteen years, the types of workloads servers host swiftly shift. This happened with the first single-mission mainframes and today, as disruptive technologies appear in the form of big data, cloud, mobility and