Data center blackout is an occasional occurrence and can be devastating to businesses. In most cases, sudden loss of power in the data center is unexpected. Even though it sometimes happens, in this post, we will discuss some of the significant reasons why a data center might experience a blackout. Impact on Operations
Some of the most valuable assets in a business are its data centers. These facilities are necessary for a company to be able to function effectively. These data centers are the heart of a company's operations, which means we should protect them against potential threats. Unfortunately, there are many ways that a data center can be compromised and put at risk for attack by hackers. When running a business with a data center, you might wonder how this could affect your business operations. To help answer this question, let us look at common ways blackouts can occur and what this means for your business. It is essential to note that even if a blackout does not occur during regular business hours, it still poses risks for your company and its employees. For example, there is an outage at night when no one is working in the office. In that case, it could lead to problems such as increased employee stress and productivity issues due to lack of sleep or other problems associated with sleeping while working. A data center outage is one of the worst nightmares of any business owner. Here are four reasons why a data center blackout can cost businesses too much:
Loss of Revenue The loss of revenue due to a data center blackout can be enormous. It is a significant issue for companies that rely on the Internet and cloud services. According to a global research firm Gartner study, data center outages cost an average of $5 million per hour. The study also revealed that human error caused half of all outages. Organizations must pay close attention to their internal processes and take steps to prevent such issues. Data center outages can result in the loss of revenue in several ways: Business continuity issues: When there is an outage, businesses cannot operate their core functions or provide support to customers trying to access their services. This results in lost revenue opportunities and customer dissatisfaction. Customer churn: If a company's website goes down for several days, it will tempt customers to move their business elsewhere if they find another provider offering similar products or services at a lower price point. Lost sales: Many e-commerce websites use shopping carts for transactions. When these carts do not function correctly during an outage, customers will likely not make purchases at your site. Instead, they will look elsewhere if they need similar products or services. Downtime and Data Loss When business is down, you lose money. Moreover, when losing data can be even more costly. When a business is down for a time, it can lead to lost revenue and missed opportunities. The financial impact of downtime varies depending on the industry, but it is easy to see how it can add up quickly. According to research from Unisys, a four-hour outage costs an average of $100,000 in revenue. That number jumps to $1.3 million if the blackout lasts eight hours or more. Data loss can also significantly impact your bottom line when a company loses valuable data through hardware failure or human error. You could lose money and time trying to recover that data and get back on track again. According to research from EMC Corporation, 68 percent of IT decision-makers believe that data loss has cost their companies money in the past year alone. Restoring Systems A cyber attack or another event can be stressful and disruptive when business is affected. Restoring systems is an essential part of recovering from the disruption. However, repairing systems can also be costly for a business. Restoring Systems Can Be Costly. A backup system that can restore your data and applications may be cheaper than rebuilding everything after an attack. However, converting business systems can be more complex than restoring backup files. There are additional costs that could make fixing more expensive than rebuilding: It increased energy costs to power servers or other equipment that would need to be running during the restoration process. The cost of work overtime personnel and lost productivity from employees who have to wait for restored computer systems before they can continue working on projects or tasks. Reputation Damage Reputation damage can be costly for businesses. Research has shown that acquiring a new customer can cost up to 10 times more than keeping an existing one (McCarthy, 2001). Therefore, businesses must protect their reputations from adverse events that could result in reputation damage and loss of customers. One way of doing this is through social media monitoring. This monitoring involves what people say about the business online, such as through blogs, forums, Twitter, and Facebook pages. If there are any negative comments, they can be addressed by the business before they become too widespread through word-of-mouth or news coverage (Hadar & Barak, 2011). Reputation damage can cost businesses, but there are ways to prevent it. A way for businesses to prevent reputation damage is by managing their reputations strategically (Boyd & Heino, 2004). A strategic reputation management approach involves identifying key stakeholders interested in the organization's reputation and ensuring they are satisfied with its performance (Hadar & Barak, 2011). Through focus groups or surveys, we can identify The stakeholders. Read more about: EU data center regulation expecting more green energy use Data Center Blackouts Can Have Far-Reaching Impact When considering data centers' importance to business, it is easy to see how devastating a blackout can be. The entire organization relies on the availability of servers that house databases and other information needed for daily operations. Employees' productivity and ability to communicate with others depend on access to network resources and applications hosted by the servers. If these systems go down due to a power outage or other problems, it could significantly impact your bottom line.
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