New research shows that European organisations are collectively losing up to €17-billion in revenue each year by failing to protect their business- critical systems.
Information technology (IT) management firm CA Southern Africa reports that international research conducted by CA Tech- nologies during 2010 shows that this figure equates to 13,5% of the proposed European Union budget for 2011.
CA Southern Africa’s chief technology officer, Andrea Lodolo, says that the results of this independent report hold great significance and lessons for local companies. These shocking statistics reveal how much room for improvement there is.
“In a First World computing society, we would expect more from mature environments. We can extrapolate from this that we, in countries that typically lag the First World, such as in Africa, are worse. If nothing else, this shows the extreme need to con- tinue focusing on the basics of infrastructure management,” he says.
The report illustrates that the financial losses associated with IT outages quickly escalate the longer organisations take to fix the problem.
The survey, consisting of 1 808 organisations across 11 European countries, reveals that each suffers an average of 14 hours of IT downtime a year, which equates to almost one-million hours across the European continent.
The UK experienced the most downtime with an average for each organisation of 27 hours a year, whereas in Belgium average downtime for each company was only eight hours a year.
During these periods, when business-critical systems are interrupted, European organisations estimate that their ability to generate revenue is reduced by 32%.
Of the countries surveyed, companies in France experienced the highest average revenue loss from downtime at nearly €500 000 a year.
Italy experienced the lowest at just under €34 000.
After each downtime, when IT systems are up and running, there is an additional delay of nine hours every year at each firm during which time data is still being recovered.
Across Europe, that’s another 628 565 hours when business operations are not fully operational.
“Moreover, in this post-outage period when data recovery is taking place, company revenue generation is still severely hampered, down by an average of 25%,” says CA Southern Africa MD Gary Lawrence.
He estimates that the results of this independent survey alone are a significant indicator for South African companies of the importance of investing in protection for critical business systems.