Story image

IT incidents costing businesses more than $150,000 every time, survey finds

23 Nov 2017

Organisations are experiencing five critical IT incidents per month, each costing organisations upwards of NZ$150,000 to the business, a new study by Quocirca confirms.

A survey commissioned by the firm by data analytics provider Splunk found that out of 1000 organisations, each incident cost IT departments more than NZ$52,000.

As a result, IT departments are taking resources away from development and instead using them to maintain their current infrastructure.

According to Quocirca analyst Bob Tarzey, organisations are finding it difficult to maintain end-to-end visibility because their IT systems and infrastructure are generating more data every day.

“This is holding IT teams back from being able to drill down and pinpoint the root cause of issues that are causing frequent and recurring problems. This often results in reputational damage and poor customer experience, impacting a company’s bottom line,” he explains.

70% of organisations say that a past critical incident has caused reputational damage.

However they are not putting the right solutions in place: 96% of organisations are failing to learn from previous incidents. 13.3% of those incidents are caused because teams can’t properly figure out the root cause of issues.

“Organisations need to be able to collect and analyse data across all their IT infrastructure more effectively to reduce the time spent in damage control mode and increase time spent on pro-active digital innovation,” Tarzey continues.

80% of respondents said they could improve the mean-time-to-detect incidents. The average time to repair is 5.81 hours.

“Today’s IT environments are more complex than ever, spanning data centres, cloud services and on-the-edge devices such as mobile and IoT. Because systems are often siloed, IT can struggle to collect and correlate information, making it difficult to monitor infrastructure and rapidly troubleshoot problems,” comments Splunk’s senior vice president of IT markets, Rick Fitz.

80% of respondents have operational blind spots, especially in their next-generation technology stacks. 2% say they have full visibility.

He says that by collecting and correlating machine data across all tiers and devices in the form of real-time analytics, there is more time for troubleshooting, monitoring and detecting anomalies.

“Reducing costs from IT incidents allow IT leaders to focus their funding and resources on developing the new digital services essential for remaining competitive.”

Quocirca surveyed 1000 companies across Australia, Japan, Singapore, the US, UK, France, Germany, Sweden and the Netherlands.

Splunk is a data analytics provider that works with customers to solve IT, IoT and security challenges. It provides a range of security solutions including analytics-driven SIEM, anti-fraud, log management, ransomware and security investigation.

Cloud application attacks in Q1 up by 65% - Proofpoint
Proofpoint found that the education sector was the most targeted of both brute-force and sophisticated phishing attempts.
Huawei picks up accolades for software-defined camera ecosystem
"The company's software defined capabilities enable it to future-proof its camera ecosystem and greatly lower the total cost of ownership (TCO), as its single camera system is applicable to a variety of application use cases."
Gartner: Good talent put off by old tech
Technology now ranks in the top ten reasons Australian employees will leave their current role, according to Gartner’s 4Q18 Global Talent Monitor.
App downtime costs businesses over $700k per event
One hour of business-critical application downtime can cost larger companies $144,062.52 per hour, with an average repair time of over five hours.
Why application downtime costs Aussie businesses more than $762,000 on average
“These findings highlight the critical need for all Australian businesses to ensure ongoing monitoring of applications."
How AI is changing the medical industry
With NVIDIA Clara, developers can speed up their medical imaging applications and implement AI.
The Data Literacy Project expands its library of free courses
Upskilling the workforce in data literacy is fundamental to unlocking business growth.
Digital experience managers, get excited for Adobe Summit 2019
“Digital transformation may be a buzzword, but companies are trying to adapt and compete in this changing environment.”