Latest benchmark study from Emerson and Ponemon Institute finds price
of downtime continues to climb; average outage cost rose 38 percent in
five years
Emerson Network Power, a business of Emerson (NYSE: EMR) and the world’s
leading provider of critical infrastructure for information and
communications technology systems, in conjunction with the Ponemon
Institute, today released the 2016
Cost of Data Center Outages report that estimates the full costs
associated with unplanned outages at data centers. Emerson and the
Ponemon Institute polled 63 data center organizations in the U.S. that
had experienced an outage in the past 12 months.
The two organizations co-released the original Cost of Data Center
Outages study, the first independently conducted research on the cost
and causes of data center downtime, in 2010. It was updated in 2013 and
again this year. Key findings from the new report include:
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The average total cost per minute of an unplanned outage increased
from $5,617 in 2010 to $7,908 in 2013 to $8,851 in this report.
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The average cost of a data center outage rose from $505,502 in 2010 to
$690,204 in 2013 to $740,357 in the latest study. This represents a 38
percent increase in the cost of downtime since the first study in 2010.
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Maximum downtime costs are rising faster than average, increasing 81
percent since 2010 to a current high of $2,409,991.
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UPS system failure, including UPS and batteries, is the No. 1 cause of
unplanned data center outages, accounting for one-quarter of all such
events. Cybercrime represents the fastest growing cause of data center
outages, rising from 2 percent of outages in 2010 to 18
percent in 2013 to 22 percent for those sampled in the latest cost
of downtime study.
“The complexity of today’s data centers continues to create challenges
for organizations as they architect and manage their IT infrastructure
to reduce costly interruptions,” said Steve Hassell, president of data
center solutions for Emerson Network Power. “Our goal with the Ponemon
Institute research is to provide industry benchmarks and insight that
help organizations make smart business decisions to mitigate costly
failures.”
The Ponemon Institute is recognized in the information technology
industry for its independent research on privacy, data protection and
information security policy.
This is the first in a series of five research reports from the two
organizations that will create industry benchmarks and provide insight
into the key challenges and decision points organizations face as they
construct an IT infrastructure to support internal users, partners,
suppliers and customers in the digital age.
“Emerson laid out a bold challenge to create benchmarks that would
better capture the myriad of challenges data center developers and
managers face as they support their organizations’ digital
transformations,” said Dr. Larry Ponemon, chairman of the Ponemon
Institute.
To download this report and future studies as they become available and
view additional supporting content, visit www.EmersonNetworkPower/Benchmarks.
About Emerson Network Power
Emerson Network Power, a business of Emerson, is the world’s leading
provider of critical infrastructure technologies and life cycle services
for information and communications technology systems. With an expansive
portfolio of intelligent, rapidly deployable hardware and software
solutions for power, thermal and infrastructure management, Emerson
Network Power enables efficient, highly-available networks. Learn more
at www.EmersonNetworkPower.com.
About Emerson
Emerson (NYSE: EMR), based in St. Louis, Missouri (USA), is a global
leader in bringing technology and engineering together to provide
innovative solutions for customers in industrial, commercial, and
consumer markets around the world. The company is comprised of five
business segments: Process Management, Industrial Automation, Network
Power, Climate Technologies, and Commercial & Residential
Solutions. Sales in fiscal 2015 were $22.3 billion. For more
information, visit Emerson.com.
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