Gartner Blog Network


The Cost of Downtime

by Andrew Lerner  |  July 16, 2014  |  88 Comments

This is a follow-up to last weeks post on network downtime as several have asked “What is the cost of  network downtime?” Based on industry surveys, the number we typically cite is $5,600 p/minute, which extrapolates to well over $300K p/hour (see Ensure Cost Balances Out With Risk in High-Availability Data Centers by Dave Cappuccio).

However, this is just an average and there is a large degree of variance, based on the characteristics of your business and environment (i.e., your vertical, risk tolerance etc). For example, this Avaya study indicates the range is from $140K to $540K p/hour. That said, why rely on averages when you can calculate the outage cost as it specifically relates to your organization?  Check out this research for that:

Toolkit: Downtime Cost Calculator for Data Center Disaster Recovery Planning (Robert Naegle)

http://www.gartner.com/document/2674021

Summary: I&O leaders should understand the potential cost impact of their regional disaster profiles to better evaluate DRM programs and disaster recovery spending.

Q&A: How Much Does an Hour of Downtime Cost? (Bill Malik)

http://www.gartner.com/document/1192213

Summary: Companies that understand how to estimate the cost of an outage, in the for-profit and the not-for-profit domains, can better plan their disaster recovery investments.

Regards, Andrew

Category: networking  

Tags: availability  avaya  downtime  outage  

Andrew Lerner
Research Vice President
3 years at Gartner
18 years IT Industry

Andrew Lerner is a Vice President in Gartner Research. He covers enterprise networking products, including SDN, SD-WAN, data center networking, campus networking, application delivery controllers and DDI. Read Full Bio


Thoughts on The Cost of Downtime


  1. […] If you believe in averages, that is. We spotted this stat today, that the average cost of network downtime, across industries (based on surveys) is $5,600 p/minute, which extrapolates to well over $300K p/hour. The range is from $140K to $540K p/hour. (Source) […]

  2. […] ahead of new device implementation. Back in July, Gartner analyst Andrew Lerner explained that network downtime costs companies an average of $5,600 per minute, which is shocking to say the […]

  3. […] or longer, you risk significant network downtime, data leakage and financial loss. According to Gartner, depending on your industry, network downtime can typically cost $5,600 per minute or more than […]

  4. […] With all of the news about data breaches and subsequent damages that has been circulating the national media, many business owners might forget that downtime can be just as devastating, especially as companies become more reliant upon digital technologies. Andrew Lerner, writing for Gartner, recently explained that the industry-recognized average cost of downtime is equivalent to roughly $5,600 each minute. […]

  5. […] are unable to do their jobs due to a technology issue—the business loses money. For example, Gartner has calculated that the average cost of network downtime across industries is $5,600 per […]

  6. […] for today’s business-critical applications. With the cost of network downtime estimated by Gartner to be hundreds of thousands of dollars per hour, the importance of maintaining business continuity […]

  7. […] outage can be a big financial hit. According to Gartner, the average cost of IT downtime is a whopping $5,600 per minute, which exceeds $300,000 per hour. This is an average across all […]

  8. […] of earlier this year, Gartner put the average cost of application downtime at closer to $500k than $700k. You can read more about the cost of downtime here. It’s worth […]

  9. […] also affects revenue. It is estimated that on normal network downtime costs good over $300,000 any hour (roughly £191,000). In terms of performance, a costs are only as high. 47% of website users design […]

  10. […] the amount of money you stand to lose. Midway through last year, Gartner Research estimated the average cost of network downtime was $5,600 per […]

  11. […] typically costs companies $5,600 per minute, Gartner has said. Aside from the financial losses, downtime creates negative customer experiences, and credibility […]

  12. […] typically costs companies $5,600 per minute, Gartner has said. Aside from the financial losses, downtime creates negative customer experiences, and credibility […]

  13. […] typically costs companies $5,600 per minute, Gartner has said. Aside from the financial losses, downtime creates negative customer experiences, and credibility […]

  14. […] typically costs companies $5,600 per minute, Gartner has said. Aside from the financial losses, downtime creates negative customer experiences, and credibility […]

  15. […] a support agreement than without it. Cost of downtime varies widely between organizations. Gartner estimates the average cost of downtime is $5,000 per […]

  16. […] benefits of Cloud. In the circumstances of a major event, most industry estimates reveal that the average cost of downtime is $5,600 per minute or more than $300k per […]

  17. […] conducted by research firm Gartner discovered that the average cost of network downtime was around $5,600 per minute, or more than $300,000 per […]

  18. […] or lost document in a business critical application is going to be costly. The average cost of datacenter downtime is around $300,000 per hour, so having at least a modest data protection plan in place moves from a […]

  19. […] or lost document in a business critical application is going to be costly. The average cost of datacenter downtime is around $300,000 per hour, so having at least a modest data protection plan in place moves from a […]

  20. […] or lost document in a business critical application is going to be costly. The average cost of datacenter downtime is around $300,000 per hour, so having at least a modest data protection plan in place moves from a […]

  21. […] to recent research from Gartner, network downtime costs the typical business an average of $5,600 per minute, and the final price tag for an outage could reach as much as $300,000 for each hour the network is […]

  22. […] shows why outages should be feared. Google “cost of downtime” and you’ll find one analyst estimating network downtime can set a business back $300,000 per hour. Avaya suggests the average cost of a […]

  23. […] has estimated the average cost of downtime at $5,600 per minute. Avaya researchers suggest the average downtime […]

  24. […] – If your company faces an outage and your equipment and software is on-site, you are down. Did you know that the average downtime cost is around $5,600 per minute, according to a recent study…? Access to your files and software during a disruption is key to a business’s success. A question […]

  25. […] shows why outages should be feared. Google “cost of downtime” and you’ll find one analyst estimating network downtime can set a business back $300,000 per hour. Avaya suggests the average cost of a […]

  26. […] Andrew Lerner reported last summer that the average cost of an outage will generally begin at $5,600 for each minute of network downtime, and work into the hundreds of thousands of dollars when reaching hours of consistent disruption. […]

  27. […] center downtime is horrendously expensive; while cost estimates vary widely by industry, some of the most comprehensive research concludes the “average cost of data […]

  28. […] be very costly for all sorts of organizations. An hour of downtime typically sets a business back around $300,000 an hour, but costs can easily be as high $540,000 or more, according to Gartner analyst Andrew Lerner. […]

  29. […] guarantee around-the-clock availability or risk losing customers. With downtime costing companies $300K per hour or $5,600/minute, the solution that solves the problem the fastest will get the business. Walking the show floor at […]

  30. […] Others have described how expensive failed transaction can be to an enterprise (in the region of $300K/hour) or delays due to poor performance (up to 7% conversions loss due to 1 second […]

  31. […] as time and enterprise needs progress. After all, when the current cost of Internet downtime is $300,000 per hour and other solutions, such as MPLS, are similarly cost-prohibitive, partners can gain headway in the […]

  32. […] be considerable. Research firm Gartner has estimated that the average cost of network downtime is $5,600 per minute, or more than $300,000 per hour. Each enterprise must determine what functions are at risk from a […]

  33. […] The Cost of Downtime – blogs.gartner.com […]

  34. […] their continuity strategies, which is a major error. Gartner's Andrew Lerner estimated that the average cost of network downtime is roughly $5,600 per minute, and $300,000 each hour. Network contingencies should be implemented […]

  35. […] the floor as potential site visitors are unable to reach your website through their browser bar. Website downtime could cost your business millions of pounds in revenue, so don’t let your site go offline because […]

  36. […] catastrophe all aspects of that business are quickly and negatively impacted. In fact, according to Andrew Lerner’s post on Gartner’s Blog, industry averages of financial loss were calculated as high as $300K per hour. Suddenly, the […]

  37. […] nines of uptime (99.999%) is the absolute lowest acceptable level of uptime you should consider. At thousands of dollars per hour for downtime costs, that .001% can get really expensive really fast. Study the SLA (service level […]

  38. […] fact, the same applies to businesses. Gartner recently predicted that downtime can cost companies as much as $5,600 a minute averaging out to $300k per hour. […]

  39. […] to Gartner, the cost of network downtime averages $5,600 per minute or more than $300,000 per hour. For […]

  40. […] applications are slowed or go down, even temporarily, the impact and cost could be colossal – up to $5,600/minute for downtime. To meet business Service Level Agreements of near-zero Recovery Point Objectives (RPOs) and […]

  41. […] to figures from Gartner, businesses can lose an average of $5,600 per minute in an outage, adding up to over $300,000 per […]

  42. […] o total de prejuízo com falhas de TI na economia mundial em $3 trilhões por ano. Um estudo do Gartner de 2014 oferece pontos mais detalhados sobre essa questão, colocando que o custo estimado com […]

  43. […] a drain on your organization’s human resources, but they can be quite costly. As an example, based on industry surveys, network downtime costs approximately $5,600 per minute (over $300k per […]

  44. […] Gartner pegs the cost of downtime for computer networks at $5,600 per minute. […]

  45. […] has estimated the average cost of downtime at $5,000 per […]

  46. […] VPS vs. unmanaged VPS balance sheet: save time spent checking for outages yourself, decrease the amount of downtime you experience, and the length of time it takes to get your site back […]

  47. […] security, monitoring of power and cooling and failover solutions in place to ensure maximum uptime. According to Gartner, every hour of downtime can cost an organization up to $300,000. Speed of deployment, […]

  48. […] Network downtime is an unfortunate reality, and according to Gartner, companies lose an average of $5,600 every minute their systems are offline. With the transition to the IoT, these costs will likely skyrocket, given […]

  49. […] So, what is the impact to an organization after they are struck with an IT disaster? A conservative estimate from Gartner pegs the cost of downtime for computer networks at $5,600/min, which extrapolates to well over $300K/hour. Read more here […]

  50. […] According to Gartner, every hour of downtime can cost an organization up to $300,000. Speed of deployment, cost-effective scalability, and ease of management with limited resources are also chief concerns. […]

  51. […] [ 1 ] Gartner.com: “The Cost of Downtime” [ 2 ] Dell.com: “Extended Service Warranty” […]

  52. […] downtime is expensive.  Some downtime calculations have put the number at over $5,000/minute!  But, this is only the tip of the […]

  53. […] schätzt in diesem Zusammenhang, dass ein Unternehmen bei einem Netzwerkausfall insgesamt bis zu 474.500 Euro pro Stunde an Umsatz verlieren kann. Dabei spielt es keine Rolle, ob die Unternehmen den Cloud-Dienst, das […]

  54. […] to Gartner, the average cost of downtime has been calculated to be roughly $5,600 per minute. That means that a power outage lasting only an hour could cost your business up to $300,000. […]

  55. […] to Gartner, the average network downtime costs around $5,600 every minute. This makes a lot of sense, considering the importance of connectivity in the Internet age, […]

  56. […] can stand to lose thousands of dollars — $300,000 per hour on average, according to Gartner — and they have no way […]

  57. […] a figure on the money your company can expect to lose per minute of downtime – in 2014 Gartner put it at around £3,900, or £234,000 per […]

  58. […] This article will look at four simple tips for avoiding data center downtime. Data center outages can be costly, and you don’t want to be responsible for […]

  59. […] a dedicated IT team supporting your employees, who do they turn to when a system error pops up or a server goes down? You? Each other? No one at all? Even if you have a dedicated in-house IT team, they can be easily […]

  60. […] downtime.  This latter point is particularly compelling, as analyst firm Gartner states that the average cost of downtime across a range of industry sectors is well over $300,000 per hour – supporting Benjamin […]

  61. […] disaster. If you’re hesitant to upgrade your old backup systems, this might change your mind: studies compiled by Gartner put the average cost of system downtime in the range of thousands of dollars per […]

  62. […] to adopt incident management solutions in order to reduce the impacts of IT downtime. According to Gartner, the potential cost of downtime for organizations can approach $540K an hour. If reduced, mean time […]

  63. […] catastrophe all aspects of that business are quickly and negatively impacted. In fact, according to Andrew Lerner’s post on Gartner’s Blog, industry averages of financial loss were calculated as high as $300K per hour. Suddenly, the […]

  64. […] businesses can stand to lose thousands of dollars — $300,000 per hour on average, according to Gartner — and they have no way […]

  65. […] was estimated to have cost the retailer about $3.75 million. A conservative (and somewhat dated) estimate from Gartner puts the average hourly cost of downtime in business at about […]

  66. […] of the problem is that the stakes are so high. Gartner estimates that businesses lose $5,600 on average for every minute of downtime. And it’s not like […]

  67. […] value to downtime casts a wide net, Gartner places the figure around $5,600 per minute – or more than $300,000 an hour – on […]

  68. […] the risk of network downtime. This latter point is particularly compelling, as analyst firm Gartner states that the average cost of downtime across a range of industry sectors is well over $300,000 […]

  69. […] the risk of network downtime. This latter point is particularly compelling, as analyst firm Gartner states that the average cost of downtime across a range of industry sectors is well over $300,000 […]

  70. […] Whether it is a simple app for a small group of users or a large service used by millions, downtime costs a lot of money and ruins everyone’s day. No matter how hard we try, downtime is inevitable. The easiest way to […]

  71. […] That said, figuring out exactly how much a company will lose isn't easy, especially for law firms. A good place to start is the Gartner estimate that found the average cost of downtime to be $5,600 per minute. […]

  72. […] events — hurricanes, tornados, wildfires and winter storms. The average business loses $5,000 per hour when they are down. While many businesses have experienced power outages or flooding caused by […]

  73. […] to the reputation and confidence of your business. In fact, since the cost of downtime is an industry average of $5,600 per minute or $300,000 per hour, the investment you make in securing the network now […]

  74. […] to the reputation and confidence of your business. In fact, since the cost of downtime is an industry average of $5,600 per minute or $300,000 per hour, the investment you make in securing the network now […]

  75. […] monitoring of power and cooling and failover solutions in place to ensure maximum uptime. According to Gartner, every hour of downtime can cost an organization up to $300,000. Speed of deployment, […]

  76. […] yourself and your company. According to an article by Andrew Lerner written for the website called Gartner, the cost of network downtime, in particular, is around $5,600 per minute. If you multiply that by […]

  77. […] Andrew Lerner, The Cost of Downtime, Gartner, http://blogs.gartner.com/andrew-lerner/2014/07/16/the-cost-of-downtime (July. 14, 2014); NTT America, Successfully combating DDoS Attacks, […]

  78. […] money this wastes has been the subject of much debate – Gartner has said it costs around $5,600 per minute while the Ponemon Institute has said it's closer to $7,900 per minute. Regardless of which […]

  79. […] of network downtime? Various reports cite a range of costs, but it is mostly put in the range of $140k to $540k per hour! That of course does not include the value of opportunities lost. If an outage happens to hit a […]

  80. […] liberally. An oft-quoted figure is Gartner’s estimate that put the cost of downtime in 2010 at a painful $5,600 per minute, while a more recent report by Emerson and the Ponemon Institute suggests that figure has climbed […]

  81. […] firm Gartner says the average cost is over $300,000 an hour though it can be more or less depending on the characteristics of the business environment. Other […]



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