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Image source : Splunk
• Drains budgets due to cyberattacks . When experiencing a ransomware attack , 67 % of surveyed CFOs advised their CEO and board of directors to pay up , either directly to the perpetrator , through insurance , a third party , or all three . The combination of ransomware and extortion payouts cost US $ 19 million annually .
• Curbs innovation velocity . 74 % of technology executives surveyed experienced delayed time-tomarket , and 64 % experienced stagnant developer productivity , as a result of downtime . Any service degradation often results in teams shifting from high-value work to applying software patches and participating in postmortems .
• Sinks lifetime value and customer confidence . Downtime can dilute customer loyalty and damage public perception . 41 % of tech executives in the report admit customers are often or always the first to detect downtime . In addition , 40 % of Chief Marketing Officers ( CMOs ) reveal that downtime both impacts customer lifetime value ( CLV ), and another 40 % say it damages reseller and / or partner relationships .
Globally , the average cost of downtime per year is more costly for US companies ( US $ 256 million ) than their global counterparts due to various factors including regulatory policies and digital infrastructure . The cost of downtime in Europe reaches US $ 198 million , and US $ 187 million in the Asia-Pacific region ( APAC ). Organisations in Europe – where workforce oversight and cyber-regulation are stricter – pay more in overtime wages ( US $ 12 million ) and to recover from backups ( US $ 9 million ). Geography also shapes how quickly an organisation recovers financially post-incident . Europe and APAC hold the longest recovery times , while companies in Africa and the Middle East recover the fastest .
“ Disruption in business is unavoidable . When digital systems fail unexpectedly , companies not only lose substantial revenue and risk facing regulatory fines , they also lose customer trust and reputation ,” said Gary Steele , President of Go-to-Market , Cisco and GM , Splunk . “ How an organisation reacts , adapts and evolves to disruption is what sets it apart as a leader . A foundational building block for a resilient enterprise is a unified approach to security and observability to quickly detect and fix problems across their entire digital footprint .”
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