For most modern companies, their network is the backbone of their business. When they lose access to resources because of network connection issues, it often leads to costly downtime and even data loss. While downtime caused by hackers locking your network gets a lot of attention, the most common causes of network outages are more common than you may think.
58% of downtime for businesses is due to human error.
The number one cause of data loss is human error.
What do we mean by human error? Patrick from Marketing tripping on an essential power cord or accidentally deleting an entire folder worth of customer records. It doesn’t matter how up-to-date and flashy your technology is, it only takes one mistake by an employee to damage data.
The consequences of a network connection issues include far more than wasted time as employees wait for IT to get the network back up. Although, it’s important to note that small business employees suffer a 34% loss in productivity during network downtime. Here are some other consequences of network downtime you may not have realized.
Consequences of data loss from network connection issues
- Loss of Data: 62% of mid-sized businesses say they have lost access to critical data during outages. Remember when Mecklenburg County was hacked? Without access to its network, the county couldn’t access permit records, leading to delays in building projects for homeowners and businesses across the county.
- Loss of revenue: According to self-reported data, downtime can cost small businesses up to $8,600 an hour. The inability to make sales, or access customer data can drive that cost up. Business owners also have to think about the cost of employees working overtime to recover data, or deal with issues from downtime. Returning again to the Mecklenburg County hack, the County decided not to pay the hackers, and rebuild applications and data. That means overtime for IT employees. Some businesses may also see a negative effect on their supply chain caused by downtime, causing delays and fees.
- Risk of Security Breach: When the network is down, or even when employees have a difficult time connecting to it, they will often turn to third-party services that are not secured or approved by IT. This opens the company up to the risk of a data leak or hack. In one survey, 45% percent of employees admitted to using Dropbox during downtime.
- Loss of reputation: Some of the costs of downtime are difficult to quantify, such as loss of reputation. Downtime could cause your company to miss deadlines, or be unavailable to customers, which could lead to lack of trust. It could also mean decreased employee satisfaction. Frequent downtime can lead to frustration and stress for employees, causing low morale, or even high turnover.
The Network Team has an easy to use tool to help you determine the cost of downtime at your business, as well as solutions to help reduce downtime and data loss. Contact us today to help reduce costly downtime at your business.