Research Highlights the Rising Cost of Datacenter Network Outages

A new study conducted by Opengear ha found that network outages are becoming not only more frequent but also more costly for organizations. The study surveyed hundreds of network engineers, CIOs and CSOs from the U.S., Australia, the UK, Germany, and France.

The research, which focused on datacenter management, found that as advanced technologies like edge computing and AI are adopted, the challenges faced in embracing those technologies are becoming more complex. Those challenges include ensuring regulatory compliance, integrating advanced technologies while using legacy infrastructure, security threats, and managing the scale and cost of implementing modernization.

Survey respondents from the UK reported that 32% of them had incurred costs of £1m-£5m ($1.35m-$6.75m) arising from network outages. As for the U.S. and Europe, 35% of study participants said they had faced costs due to network outages ranging from $1 million to $5 million each year.

About 84% of the CSOs and CIOs surveyed revealed that network outages had increased in frequency over the previous 24 months, with more than half of them stating that their organizations had experienced an uptick in outages ranging between 10% to 24% within 24 months. Notably, 26% of survey respondents said network outages had increased by 25%-50% within that timeframe.

From those observations, Opengear flagged these increases as significant business concerns given that just a paltry 6% said their organizations had witnessed declining network outages.

The network engineers surveyed attributed most outages to defects within infrastructure. Changes to device configuration and failures in server hardware were the most common outage triggers identified by these engineers.

Patrick Quirk, the President of Opengear, said that the research shows that aging infrastructure, cyber attacks and human error are resulting in more network outages and that incidents are no longer isolated. He added that outages adversely impact productivity, revenue and trust. The shift to decentralized datacenter infrastructure can help in addressing outages since datacenters are constructed within the areas where data is being consumed or generated, he added.

However, such decentralization also presents a new set of risks with regard to security and management, so these also need to be carefully weighed during implementation.

The major tech firms, such as Microsoft Inc. (NASDAQ: MSFT), are racing to increase their datacenter footprint across different regions in a bid to ramp up their capacity as demand increases around the world. As network infrastructure improves, there is hope that the challenges created by outages will gradually be addressed.

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