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!

Sorry, comments are closed for this post.

Comics

At CloudTweaks, we're plugged into the cloud, the internet of things and all that the web has to offer. From wearable technology, to mobile computing, cloud computing and big data, CloudTweaks is your source for updates and news on the most innovative technology.

Popular

Top Viral Impact

Forrester Releases Its “15 Emerging Technologies To Watch Before 2020” Report

Forrester Releases Its “15 Emerging Technologies To Watch Before 2020” Report

15 Emerging Technologies To Watch Before 2020 The cloud, big data, the internet of things, and wearable technology have all featured heavily in Forrester’s latest list of fifteen technologies to watch before 2020. It is becoming a reality for businesses that they need to adapt and change to an increasingly technologically-minded customer base. Traditional marketing…

Cloud Infographic – Cloud Computing And SMEs

Cloud Infographic – Cloud Computing And SMEs

Cloud Infographic – Cloud Computing And SMEs SMEs (Small/Medium Sized Enterprises) make up the bulk of businesses today. Most cloud based applications created today are geared toward the SME market. Accounting, Storage, Backup services are just a few of them. According to the European Commission, cloud based technology could help 80% of organisations reduce costs by…

The Industries That The Cloud Will Change The Most

The Industries That The Cloud Will Change The Most

The Industries That The Cloud Will Change The Most Cloud computing is rapidly revolutionizing the way we do business. Instead of being a blurry buzzword, it has become a facet of everyday life. Most people may not quite understand how the cloud works, but electricity is quite difficult to fathom as well. Anyway, regardless of…

Cloud Infographic – The Internet Of Things In 2020

Cloud Infographic – The Internet Of Things In 2020

Cloud Infographic –  The Internet Of Things In 2020 The growing interest in the Internet of Things is amongst us and there is much discussion. Attached is an archived but still relevant infographic by Intel which has produced a memorizing snapshot at how the number of connected devices have exploded since the birth of the…

Featured Sponsors

The Internet of Everything Opens Up The World

The Internet of Everything Opens Up The World

Shaping The World With New Technologies As a connected collection of intelligent objects, the Internet of Everything promises to open up those areas of the world hardest hit by economic, political and agricultural blights. Relatively inexpensive devices, paired with revolutionary energy sources and unprecedented access to information offer great promise to farmers and workers in…

Moving From Email Into The Cloud

Moving From Email Into The Cloud

Mobile Collaboration In The Cloud Imagine that you, as a manager, are told by the powers that be that you have to find “efficiencies” within your department that will result in one million dollars of savings annually. You struggle with this. You send an email to everyone on your senior team. “Where can we save…

Sponsors

Cloud ERP Starter’s Guide: When QuickBooks Is Not Enough

Cloud ERP Starter’s Guide: When QuickBooks Is Not Enough

Cloud ERP Starter’s Guide: When QuickBooks Is Not Enough You’ve been running your small business on QuickBooks, or a product like it, to automate your accounting function and produce basic financial reports. So, what’s wrong? Things just don’t seem to be working well. It takes too long to get a “picture” of how your business…

Placement Opportunities - Find Out!

Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and 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.

You can help continue to support our community by social sharing, sponsoring, partnering or contributing to this great educational resource.

Contact

CloudTweaks Media
Phone: 1 (212) 763-0021

Join Our Newsletter