Core News Facts
1. Time taken to fix failed IT systems costs the average financial organisation in the UK Â£330,000* a year through lost revenue or nearly Â£350 million** collectively, the CA Technologies âAvoidable Cost of Downtime 2010 Reportâ found. The survey was conducted by an independent research firm, Coleman Parkes.
2. The report reveals that when business-critical systems are compromised, organisations in the UK estimate that their ability to generate revenue is reduced by 32%.
3. Much of this downtime and associated cost is avoidable - organisations can tackle it through a re-evaluation of their disaster recovery strategy.
CA Technologies (NASDAQ: CA) today announced the results of an independent report revealing that financial organisations in the UK are each losing nearly Â£330,000* in revenue each year from the time taken to recover from IT downtime, significantly more than the average organisation in the UK which loses just over Â£200,000 a year***. This equates to nearly Â£350 million** collectively for all the finance organisations in the UK. CA Technologies believes that much of this considerable cost to business and the economy can be avoided through better data protection strategies that focus on the speed of data recovery.
The CA Technologies âAvoidable Cost of Downtime 2010 Reportâ illustrates that the financial losses associated with IT outages quickly escalate the longer organisations take to fix them. The survey of 200 companies in the UK (1808 in total throughout Europe) reveals that each financial organisation suffers from an average of 32 hours of IT downtime a year. During these periods, when business-critical systems are interrupted, organisations estimate that their ability to generate revenue is reduced by 32%.
Chris Ross, Vice President EMEA and Asia-Pacific, Recovery Management and Data Modelling Customer Solutions Unit, CA Technologies, said: âThe smooth running of IT is critical for finance organisations in todayâs fragile economic climate and any degradation in service not only impacts employee productivity, but can be very visible to customers too. With companies increasingly dependent on online services to generate revenue or provide an essential channel of customer communication, the financial impact of outages is becoming a critical issue. Fortunately, much of this cost is avoidable - organisations can tackle it through a re-evaluation of their disaster recovery strategy. Doing so could have a direct impact on their financial position and help them manage their emergence from the recession.â
The CA Technologies âAvoidable Cost of Downtime 2010 Reportâ also reveals that post IT downtime (i.e. when IT systems are up and running), finance companies suffer an additional delay of 26 hours per year during which time data is still being recovered. In this post-outage period when data recovery is taking place, company revenue generation is still hampered, down by an average of 19%. Overall, finance organisations were found to incur a longer total amount of downtime and recovery time than the average organisation in the UK, 58 hours as compared to 38.
âMany organisations endure longer than necessary interruptions to their IT systems, because their data protection policies arenât robust enough,â continued Ross. âOrganisations often focus their efforts on backing up data securely while neglecting to consider how quickly they can recover their data in the event of a failure. This âspeed of recoveryâ is a good starting point for organisations planning or re-evaluating their disaster recovery needs. With the correct data recovery and back-up solution organisations can redress this balance, and ultimately save money and increase competiveness.â
Other key findings from the survey included:
â¢ Three quarters (74%) of the organisations surveyed said that the IT systems and applications effected by IT outages were mission critical.
â¢ The departments most likely to suffer during downtime were operations (84%), finance (48%) and HR/personnel (40%).