hourly cost of downtime

Security, Data Breaches Top Cause of Downtime in 2022

ITIC Reports & Surveys, Laura's Insights ITIC Blog, News / By Laura DiDio

A 76% majority of corporations cite Security and Data Breaches as the top cause of server, operating system, application and network downtime, according to ITIC’s latest 2022 Global Server Hardware Security survey which polled 1,300 businesses worldwide.

Security is a technology and business issue that impacts all enterprises. Some 76% of respondents cited security and data breaches as the greatest threat to server, application, data center, network edge and cloud ecosystem stability and reliability (See Exhibit 1). This is a three-fold increase from the 22% of ITIC corporate survey respondents who said security negatively impacted server and network uptime reliability in 2012. The hacks are more targeted, pervasive and pernicious. They are also more expensive and designed to inflict maximum damage and losses on their enterprise and consumer victims.

Security has a major impact on businesses of all sizes and across all vertical markets. In 2022 nine-in-10 companies estimate that server hardware and server OS security have a significant impact on overall network reliability and daily transactions (See Exhibit 2).

Mean Time to Detection is a Critical Barometer

Security hacks and data breaches are a fact of doing business in the digital age. It’s BIG business for hackers and cyber criminals. At some point, every organization and its critical main line of business servers, server operating systems and applications will be the victims of an attempted or successful data breach of some type.

Data Breaches and Downtime Costs Soar

In 2021 the average cost of a successful data breach increased to $4.24 million (USD); this is a 10% increase from $3.86 million in 2020, according to the 2021 Cost of a Data Breach Study, jointly conducted by IBM and the Ponemon Institute. The $4.24 million average cost of a single data breach is the highest number in the 17 years since IBM and Pokemon began conducting the survey. It represents an increase of 10% in the last 12 months and 20% over the last two years.

The FBI’s 2021 Internet Crime Report, released in March 2022, found that Internet cyber crimes cost Americans $6.9 billion last year. This is more than triple the $2 billion in losses reported in 2020. According to the FBI, it received 847,376 complaints of suspected internet crime; this is a seven percent (7%) compared to 2020.

The FBI 2021 Internet Crime Report said the top three cyber crimes reported by victims in 2021 were: “phishing scams, non-payment/non-delivery scams, and personal data breach. Victims lost the most money to business email compromise scams, investment fraud, and romance and confidence schemes.”

ITIC’s 2022 Global Server Hardware Security survey findings underscore the expensive nature of cyber crime. ITIC’s latest research shows the Hourly Cost of Downtime now exceeds $300,000 for 91% of SME and large enterprises. Overall, 44% of mid-sized and large enterprise survey respondents reported that a single hour of downtime, can potentially cost their businesses over one million ($1 million).

Organizations must rely on strong embedded server and infrastructure security that recognizes the danger, sends alerts and alarms and that possess the ability to isolate the threats. Strong preparedness on the part of the corporation and having a well trained staff of security professionals and IT administrators are of paramount importance.

The more quickly the company’s servers and software can detect a security issue and respond to it, the greater the chances of isolating and thwarting the attack before it can infiltrate the network ecosystem, interrupt data transactions and daily operations and access sensitive data and IP.

Robust security is comprised of two things: solid security products AND strong security policies and procedures administered and monitored by proactive and trained security professionals.

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ITIC 2021 Global Server Hardware, Server OS Reliability Survey Results

2021, ITIC Reports & Surveys / By Laura DiDio

The technical and business challenges posed by the ongoing global pandemic didn’t compromise the core reliability of IBM, Lenovo, Huawei, Hewlett-Packard Enterprise and Cisco servers.

For the 13th straight year, IBM’s Z mainframe and mission critical Power servers achieved the highest server hardware reliability and delivered the strongest server security, among 15 different platforms, in ITIC’s annual 2021 Global Server Hardware, Server OS Reliability Survey.

And for the eighth consecutive year, Lenovo’s ThinkSystem servers again matched their best recorded uptime among all Intel x 86 servers along with Huawei’s KunLun and Fusion platforms. The HPE Superdome and the Cisco UCS hardware (in that order), rounded out the top five most reliable vendor hardware platforms (See Exhibit 1).

ITIC’s 2021 Global Server Hardware, Server OS Reliability independent Web-based survey, polled 1,200 corporations across 28 vertical market segments worldwide on the reliability, performance and security of the most popular server platforms from January through June 2021. Additionally, the preliminary findings from ITIC’s 2021 Global Reliability updated survey conducted from September through November 2021, indicate that the IBM Z, IBM Power servers; the Lenovo ThinkSystem and Huawei KunLun and Fusion servers continue to dominate and deliver the highest uptime, availability and security in datacenters and the cloud.

Among the top survey findings:

Server Reliability: IBM z14 and z15 outpaced all rivals, matching its best ever results: just 0.60 seconds of per server monthly unplanned downtime. The IBM Power models also equaled their best uptime scores over the last 13 years, with just 1.49 minutes of unplanned per server downtime. The Lenovo ThinkSystem and Huawei KunLun platforms followed closely, each with 1.51 minutes of unplanned per server outages. Inspur was in the middle of the pack with 11 minutes of unplanned per server downtime, while the Dell PowerEdge servers posted 26 minutes of unanticipated outages. Unbranded White box servers (which often run unlicensed or pirated software) again were the least reliable servers with 57 minutes of unplanned per server downtime; this is up two (2) minutes from 2020.
Server Availability: The IBM Z servers are in a class by themselves, a 94% majority of IBM Z customers said their businesses achieved unparalleled fault tolerant levels of six and seven nines – 99.9999% and 99.99999% reliability and continuous availability, the best among all server distributions. The IBM Power is close behind with 91% of customers reporting that the Power9 and latest Power10 models deliver a minimum of five and six nines availability/uptime. Meanwhile, 90% of Lenovo ThinkSystem, Huawei KunLun and HPE Superdome enterprises said their businesses achieve a minimum of five and six nines server availability.
Cost Effectiveness/Total Cost of Ownership: The most reliable IBM z14 and z15; IBM LinuxONE III and the PowerPower8 and PowerPower9 servers deliver the best TCO and near immediate Return on Investment (ROI). A single minute of per server unplanned downtime on an IBM z14 or z15 server, calculated at a rate of $100,000, costs enterprise customers $1,002. One minute of unplanned downtime on a single IBM Power8 and Power9 calculated at $100,000 an hour costs $2,488. The upcoming Power10, slated to ship in September will likely offer better reliability and lower costs even further. The Lenovo ThinkSystem and Huawei KunLun and Fusion offerings each averaged 1.51 minutes of unplanned per server outages; that equates to per server/per minute downtime charges of $2,521. Unbranded White box servers with 57 minutes of unplanned per server downtime could cost corporations $95,190 when hourly downtime losses are calculated at $100,000 (See Exhibit 3 and Exhibit 4).
Security hacks, user error and remote working/remote learning are the top three causes of unplanned downtime. A 73% majority of survey participants cited security as the number one cause of unplanned server downtime; 64% said human error caused unplanned server outages. Meanwhile, 58% of survey participants attributed increased downtime to management and security issues related to COVID-19 issues like remote working and remote academic learning via Zoom meetings for K-through-12 and college classes. While offices and schools were closed during the global pandemic during 2020 and much of 2021, IT and security administrators were hard pressed to effectively manage and secure remote PCs, laptops, notebooks and tablets. Consequently many employees and students did not adequately secure their personal devices. An April 2021 Fortune magazine article noted that hybrid and remote workplace and academic environments created many positive opportunities for businesses and schools, but they also represent a potential boon for hackers.

In 2020, cybercriminals transmitted 61% of malware through cloud applications to target remote workers, according to the July 2021 Netskope Cloud and Threat Report . The report said that utilizing cloud-based applications enables hackers to circumvent older, legacy Email and Web-based security solutions. The Netskope report further noted that security risks are exacerbated by the fact that 83% of employees and students access sensitive personal data via applications installed on corporate and academic devices e.g., laptops, notebooks and tablets. This can result in dire consequences in the connected digital era. To cite one example, in March 2020, the California State Controller’s Office, which handles $100 billion a year, suffered an email phishing attack on an employee that enabled cyber criminals cloud access to internal documents; once they gained entrance to the employee’s device they were able to successfully phish another 9,000 employees.

The reliability and security of server hardware, server operating systems and mission critical applications are critical elements of the core datacenter, network edge and cloud infrastructure.

Eighty-nine (89%) percent of organizations require a minimum of “four nines” – 99.99% reliability to ensure uninterrupted daily business operations and secure data assets to sustain the company’s revenue stream and mitigate risk. And over one-third of organizations now strive for “five nines” 99.999% of uptime; this equals 5.25 minutes of per server unplanned downtime.

Each second and minute of server downtime and the associated mission critical applications costs the business money and raises transactional operations and monetary risks.

In the digital era of interconnected intelligent systems and networks, unplanned downtime of even a few minutes is expensive and disruptive and can reverberate across the entire ecosystem. This includes datacenters; virtualized public, private and hybrid clouds; remote work and learning environments and the intelligent network edge.

ITIC’s 2021 Hourly Cost of Downtime survey indicates a single hour of server downtime totals $300,000 or more for 91% percent of mid-sized enterprises (SMEs) and large enterprises. And among that 91% majority – nearly half or 44% – of corporations said, hourly outage costs exceed one million ($1M) to over five million ($5M).

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IBM, Lenovo and Huawei Servers Most Secure, Suffer Fewest Hacks As COVID-19 Data Breaches Surge

2021, ITIC Reports & Surveys / By Laura DiDio

IBM, Lenovo, Huawei, Hewlett-Packard Enterprise and Cisco hardware are the most secure and reliable servers. These platforms experienced the fewest successful hacks and recorded the least amount of unplanned downtime due to data breaches among mainstream servers in the last year.

Those are the results of the latest ITIC Global Server Hardware, Server OS Reliability and Security survey which polled over 1,000 businesses worldwide across 28 different vertical market sectors from October 2020 through March 2021.

The most recent ITIC survey statistics indicate that reliability and security are closely intertwined and even symbiotic. The top five most reliable server platforms: the IBM Z, the IBM Power Systems, Lenovo ThinkSystem, Huawei KunLun and Fusion Servers, the HPE Superdome Integrity and Cisco UCS (in that order) also boast the strongest security.

ITIC’s most recent Global Security poll similarly found that IBM, Lenovo, Huawei and HPE mission critical servers experienced the lowest percentages of downtime due to successful security hacks and data breaches.

The IBM Z mainframe outpaced all other server distributions and is in a class of its own as it achieved its most robust security and reliability ratings to date in the latest ITIC study.

Only a miniscule – 0.3% – of IBM Z high end servers, suffered a successful data breach. Among other mainstream hardware platforms, just four percent (4%) of IBM Power Systems and Lenovo ThinkSystem users reported their systems were successfully hacked, while five percent (5%) of Huawei KunLun and HPE Integrity Superdome server customers reported a security breach between March 2020 and April 2021.

Just over one-in-ten or 11% of Cisco UCS servers were successfully hacked. Cisco’s hardware performed extremely well, particularly when one considers that many of the UCS servers are deployed in remote locations and at the network edge, which frequently are the first line of defense and take the brunt of hack attacks. Unbranded White box servers were the most vulnerable to security penetrations: 44% of ITIC survey respondents reported they were successfully hacked.

The global pandemic sparked a wave of COVID-19 related data breaches, ransomware, phishing, Business Email Compromise (BEC), CEO fraud and attacks that continue unabated.

Overall, ITIC’s survey findings indicate that there is a clear and widening gap in server hardware security and reliability among the top performing platforms and the most insecure offerings. The global pandemic sparked a wave of COVID-19 related data breaches, ransomware, phishing, Business Email Compromise (BEC), CEO fraud and attacks that continue unabated.

Security and reliability issues are closely intertwined: a successful data breach immediately compromises server, application and network uptime and availability. Security will likely persist as the chief threat that causes expensive unplanned downtime and outages.

Survey Highlights

Notably, despite a 31% spike in security hacks and data breaches during the COVID-19 pandemic over the last 16 months, IBM, Lenovo, Huawei, HPE and Cisco maintained their top positions as the most reliable and secure server platforms.

Additionally, the top five server distributions achieved the best security ratings of among all mainstream server hardware platforms in every security category in ITIC’s latest poll, including:

The least number of attempted security hacks/data breaches
The fewest number of successful security hacks/data breaches
The fastest Mean Time to Detection (MTTD) from the onset of the attack until the company isolated and shut it down

The strong security results posted by IBM, Lenovo, Huawei, HPE and Cisco (in that order) are especially noteworthy since they occurred during the height of the COVID-19 global pandemic. Some 31% of ITIC survey respondents said their servers, operating systems and critical business applications suffered successful penetrations by myriad security hacks and data breaches since the outset of COVID-19 in early 2020. This is an increase of 12 percentage points, up from the 19% in ITIC’s 2020 Global Server Hardware, Server OS Reliability survey.

Security is a core component of every organization’s network. Robust security is even more crucial in the COVID-19 era which ushered in a variety of new scams. Some 69% of organizations cited security and data breaches as the greatest threats to the reliability of server, application, data center, network edge and cloud ecosystems. The hacks themselves are more targeted, prevalent, pervasive and pernicious: They are designed to inflict maximum damage and losses on their enterprise and consumer victims.

Data Breaches are Big Business

Data breaches are big business and a primary business for the burgeoning professional hacking community. A successful hack is expensive on many levels. In 2020, the cost of a data breach averaged $3.86 million, according to the 2020 Cost of a Data Breach Study jointly conducted by IBM and the Ponemon Institute[1]. This represents a 10% increase since 2015.

ITIC’s latest survey data also indicates that the Hourly Cost of Downtime now exceeds $300,000 for 88% of businesses. Overall, 40% of mid-sized and large enterprise survey respondents reported that a single hour of downtime, costs their firms over one million ($1 million). A data breach that occurs during peak usage hours and interrupts crucial business operations can cost businesses millions per minute.

Besides the obvious monetary losses due to productivity and disrupted operations, businesses must factor in amount of manpower hours and the number of IT and security administrators involved in remediation efforts and full return to operation. Companies must also determine whether or not any data or intellectual property (IP) was lost, stolen, damaged, destroyed or changed. Organizations must also add in the cost of any litigation as well as potential civil or criminal fines/penalties associated with security incidents and data breaches. Some costs, like damage to an organization’s reputation are incalculable and may result in lost business.

Hackers pick and choose their targets with great precision and are quick to take advantage of every opportunity. The COVID-19 pandemic is a prime example. Hackers immediately set their sights on teleworkers and remote learning students taking online and Zoom classes. They zeroed in on so-called “soft targets.” Local and state municipalities; small and mid-sized school districts, hospitals, health care clinics, doctors’ offices and branch bank offices that may lack full-time onsite security and IT administrators and may not have installed the latest security.

It’s no surprise that vendors like IBM, Lenovo, Huawei, HPE, which perennially achieve top server reliability ratings were also among the most secure hardware platforms. These vendors and more recently Cisco, have made server security – and in Lenovo’s case server, PC and laptop security – a top priority and have invested heavily in bolstering the inherent security of their product offerings over the last several years. So when the Covid-19 pandemic hit, they already had strong, embedded security and this stood them and their customers in good stead.

The most secure server hardware platforms experienced the fewest successful security breaches. The IBM Z running the z/OS and RHEL Linux and IBM LinuxONE III respondents all said those platforms had no successful security hacks over the 16 months. They were followed by the IBM Power Systems and Linux ThinkSystem servers with one each; Huawei KunLun which averaged two hacks; the HPE Integrity with three successful penetrations and Cisco’s UCS servers with seven data breaches. The unbranded White box servers were the most porous, averaging 20 successful data breaches in the past 16 months.

Data breaches are big business. And they are expensive. The average cost of a data breach in 2020 is $3.86 million, according to the latest 2020 Cost of a Data Breach Study jointly conducted by IBM and the Ponemon Institute[2]. While the report indicates that the average data breach cost declined by a slight 1.5% compared with 2019’s study, the $3.86 million figure still represents a 10% increase since 2015.

A DTEX Systems Report found that “only 30% of organizations were prepared to secure a complete shift to remote work.” The DTEX Systems study also found that almost 75% of organizations are concerned about the security risks introduced by users working from home and 73% of businesses admitted they have partial or no visibility into user activity if their VPN is disabled by remote workers. Another alarming finding is that teleworkers use their work laptops for personal use; with 25% of respondents acknowledging this increases the risk of drive-by-downloads, with 15% saying their firms are more susceptible to Phishing attacks.

Conclusions and Recommendations

Security is now the number one issue that negatively undermines the reliability of server hardware, server OS and business critical applications. All organizations should make security a priority and work closely with their vendors to mitigate security risks to an acceptable level.

Every added second and minute of server downtime and application unavailability negatively impacts business operations, employee productivity and revenue.

No server platform, server OS or business application will provide foolproof security. However, IBM, Lenovo, Huawei, HPE and Cisco which are among the most reliable server platforms also provide the greatest levels of inherent security. This enables customers to achieve the greatest economies of scale and safeguard their sensitive IP and data assets. That said, security is a 50/50 proposition. While vendors must deliver robust security, corporations are responsible for maintaining the reliability of their server and overarching network infrastructure. ITIC strongly advise businesses to:

Take inventory of all devices and applications across the ecosystem.
Conduct security vulnerability testing at least annually and work with third party experts.
Have a remediation and governance plan in place in the event your firm is successfully hacked.
Ensure that Security and IT professionals receive adequate training.
Ensure that end users as well as contract workers and temporary employees receive adequate security awareness training on the latest Email and Phishing scams and ransomware threats.
Implement strong security policies and procedures and enforce them.
Regularly replace, retrofit and refresh server hardware and server operating systems with the necessary patches, updates and security fixes as needed to maintain system health.
Keep up-to-date on the latest security patches and fixes.
Ensure that your firm’s hardware and software vendors and cloud vendors meet or exceed the terms of their Service Level Agreements (SLAs) for agreed upon security and reliability levels.

[1] “2020 Cost of a Data Breach Study,” IBM and the Ponemon Institute. URL: https://www.ibm.com/security/data-breach

[2] “2020 Cost of a Data Breach Study,” IBM and the Ponemon Institute. URL: https://www.ibm.com/security/data-breach

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Forty Percent of Enterprises Say Hourly Downtime Costs Top $1Million

2020, ITIC Reports & Surveys / By Laura DiDio

Four in 10 enterprise organizations – 40% – indicate that a single hour of downtime can now cost their firms from $1 million to over $5 million – exclusive of any legal fees, fines or penalties.

Those are the results of ITIC’s 11th annual Hourly Cost of Downtime Survey. ITIC polled 1,000 businesses from March through June 2020. All categories of businesses were represented in the survey respondent pool: 27% were small/midsized (SMB) firms with up to 200 users; 28% came from the small/midsized (SME) enterprise sector with 201 to 1,000 users and 45% were large enterprises with over 1,000 users. data indicates that over 98% of large enterprises with more than 1000 employees say that on average, a single hour of downtime per year costs their company over $100,000. These statistics represent the “average” hourly cost of downtime. In a worst case scenario – such as a catastrophic outage that occurs during peak usage times or an event that disrupts a crucial business transaction – the monetary losses to the organization can reach and even exceed millions per minute.

Once again, as in ITIC’s 2019 Hourly Cost of Downtime poll, only a tiny two percent minority of respondents — mainly very small businesses with fewer than 50 employees – reported that downtime costs their companies less than $100,000 in a single 60-minute time period. Downtime costs are also expensive for SMBs with 200 to 500 employees. Nearly half – 47% – of SMB survey respondents estimate that a single hour of downtime can easily cost their firms $100,000 or more in lost revenue, end user productivity and remedial action by IT administrators. To reiterate, these figures are exclusive of penalties, and any ensuing monetary awards that are the result of litigation, civil or criminal non-compliance penalties.

It’s easy to underestimate the cost of downtime, but it adds up quickly. For example: one minute of downtime for a single server in a company that calculates its hourly cost of downtime for a mission critical server or application at $100,000 is $1,667. The overwhelming majority of firms will have multiple servers impacted in an outage — particularly if those servers are located in the cloud or a virtualized environment. That $100,000 of hourly downtime calculation of $1,667 per minute for a single server quickly grows to $16,670 per minute when downtime affects 10 servers and main line of business applications/data assets! Downtime costs add up quickly for corporate enterprises. And once again, these are just the costs of the actual downtime. It does not factoring in any lost, damaged, stolen, destroyed or changed data.

Small businesses are equally at risk, even if their potential downtime statistics are a fraction of large enterprises. For example, an SMB company that estimates that one hour of downtime “only” costs the firm $10,000 could still incur a cost of $167 for a single minute of per server downtime. Similarly, an SMB company that assumes that one hour of downtime costs the business $25,000 could still potentially lose an estimated $417 per server/per minute. Very small SMBs – companies with 1 to 100 employees – generally would not rack up hourly downtime costs of hundreds of thousands or millions in hourly losses. Small companies however, typically lack the deep pockets, larger budgets and reserve funds of their enterprise counterparts to absorb financial losses associated with downtime.

Hourly downtime costs of $25,000; $50,000 or $75,000 (exclusive of litigation or civil and even criminal penalties) may be severe enough to put the SMB out of business – or severely damage its reputation and cause it to lose business.

ITIC’s latest Hourly Cost of Downtime survey revealed that for large enterprises, the price tag associated with a 60 minute outage is much steeper: it routinely tops the $5 Million (USD) mark for the top 10 verticals. These include: Banking/Finance; Food; Energy; Government; Healthcare; Manufacturing; Media & Communications; Retail; Transportation and Utilities.

These highly regulated vertical industries must also factor in the potential losses related to litigation. Businesses may also be liable for civil penalties stemming from their failure to meet Service Level Agreements (SLAs) or Compliance Regulations. Moreover, for select organizations, whose businesses are based on compute-intensive data transactions, like stock exchanges or utilities, losses may be calculated in millions of dollars per minute.

ITIC’s 11th annual Hourly Cost of Downtime Survey, conducted in conjunction with the ITIC 2020 Global Server Hardware Server OS Reliability Survey – found that an 87% majority of organizations now require a minimum of 99.99% availability. This is up from 81% in the last 2 ½ years. The so-called 99.99% or “four nines” of reliability equals 52 minutes of unplanned per server/per annum downtime for mission critical systems and applications or, 4.33 minutes of unplanned monthly outages for servers, applications and networks.

Overall, hourly downtime costs will continue to soar. And this means that companies of all sizes across all vertical markets will have little or no tolerance for downtime.

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ITIC Editorial Calendar

Laura's Insights ITIC Blog / By Laura DiDio

March/April 2020: ITIC 2020 Global Server Hardware and Server OS Reliability Survey

Description: Reliability and uptime are absolutely essential. Over 80% of corporations now require a minimum of 99.99% availability and greater; and an increasing number of enterprises now demand five nines – 99.999% or higher reliability. But which platforms actually deliver? This survey polls businesses on the reliability, uptime and management issues involving the inherent reliability of 14 different server hardware platforms and server operating system. The survey polls corporations on the frequency, the duration and reasons associated with Tier 1, Tier 2 and Tier 3 outages that occur on their core server OS and server hardware platforms. The results of this independent, non-vendor sponsored survey will provide businesses with the information they need to determine the TCO and ROI of their individual environments. The survey will also enable the server OS and server hardware vendors to see how their products rate among global users ranging from SMBs with as few as 25 people to the largest global enterprises with 100,000+ end users.

The 2020 ITIC Global Reliability Survey has also been updated and expanded to include questions on:

Component level failure data comparisons between IBM Power Servers and Intel-based x86 servers such as Dell, HP, Huawei, Lenovo and Cisco.
Percentage of component level failure data comparisons by vendor according to age (e.g. new to three months; three to six months; six months to 1 year; 1 to 2 years; 2 to 3 years; 3 to 4 years; 4 to 5 years; over five years).
Which component parts fail and frequency of failure
A percentage breakout of server parts failures for parts such as hard disk drives(HDD), processors, memory, power components, fans, or other
Where available, how the component failed. For example: memory multi-bit errors, HDD read failures, processor L1/L2 cache errors, etc.

April/May: 2020 Hourly Cost of Downtime

Description: Downtime impacts every aspect of the business. It can disrupt operations and end user productivity, result in data losses and raise the risk of litigation. Downtime can also result in lost business and irreparably damage a company’s reputation. The cost of downtime continues to increase as do the business risks. ITIC’s 2019 Hourly Cost of Downtime survey found an 85 % majority of organizations now require a minimum of 99.99% availability. This is the equivalent of 52 minutes of unplanned outages related to downtime for mission critical systems and applications or just 4.33 minutes of unplanned monthly outage for servers, applications and networks. This survey will once again poll corporations on how much one hour of downtime costs their business – exclusive of litigation, civil or criminal penalties. ITIC will also interview customers and vendors across 10 key vertical markets including: Banking/Finance; Education; Government; Healthcare; Manufacturing; Retail; Transportation and Utilities. The Report will focus on the toll that downtime extracts on the business, its IT departments, its employees, its business partners, suppliers and its external customers. This report will also examine the remediation efforts involved in resuming full operations as well as the lingering or after-effects to the corporation’s reputation as the result of an unplanned outage.

May/June 2020: ITIC Sexual Harassment, Gender Bias and Pay Equity Survey

Description: ITIC’s “Sexual Harassment, Gender Bias and Pay Equity Gap,” independent Web survey polled 1,500 women professionals worldwide across 47 different industries, with a special emphasis on STEM disciplines. The survey focuses on three key areas of workplace discrimination: Sexual Harassment, Gender Bias and Unequal Pay.

July/August: 2020 IoT Deployment and Usage Trends Survey and Report

Description: The Internet of Things (IoT) has been one of the hottest emerging technologies of the last several years. This ITIC Report will present the findings of an ITIC survey that polls corporations on the business and technical challenges as well as the costs associated with IoT deployments. This IoT Report will also examine the ever present security risks associated with interconnected environments and ecosystems. ITIC’s IoT 2020 Deployment and Usage Trends Survey will also query global businesses on a variety of crucial issues related to their current and planned Internet of Things (IoT) usage and deployments such as how they are using IoT (e.g. on-premises versus Network Edge/Perimeter deployments); the chief benefits and biggest challenges and impediments to IoT upgrades. Vendors profiled for this report will include: AT&T, Bosch, Cisco, Dell, Fujitsu, General Electric (GE), Google, Hitachi, Huawei, IBM, Intel, Microsoft, Particle, PTC, Qualcomm, Samsung, SAP, Siemens and Verizon.

August: ITIC 2020-2021 Security Trends

Description: Security, security, security! Security impacts every aspect of computing and networking operations in the Digital Age. And it’s never been more crucial as businesses, schools, government workers and consumers are working at home amidst the ongoing Nouvel and damaging security hack impacting the lives of millions of consumers and corporations. This Report will utilize the latest ITIC independent survey data to provide an overview of the latest trends in computer security including the latest and most dangerous hacks and what corporations can do to defend their data assets. Among the topics covered:

Security threats in the age of COVID-19
The most prevalent type of security hacks
The percentage of corporations that experienced a security hack
The duration of the security hack
The severity of the security hack
The cost of the security hack
Monetary losses experienced due to security breaches
Lost, damaged, destroyed or stolen data due to a security breach
The percentage of time that corporations spend securing their networks and data assets
Specific security policies and procedures companies are implementing
The issues that pose the biggest threats/risks to corporate security

August/September: ITIC 2020 Global Server Hardware Server OS Reliability Survey Mid-Year Update

Description: This Report is the Mid-year update of ITIC’s Annual Global Server Hardware, Server OS Reliability Survey. Each year ITIC conducts a second survey of selected questions from its Annual Reliability poll. ITIC also conducts new interviews with C-level executives and Network administrators to get detailed insights on the reliability of their server hardware and operating system software as well as the technical service and support they receive from their respective vendors. ITIC will also incorporate updated PowerPoint slides and statistics to accompany the report.

October/November: AI, Machine Learning and Data Analytics Market Outlook

Description: This Report will examine the pivotal role that AI, Machine Learning and IoT-enabled predictive and prescriptive Analytics plays in assisting businesses sort through the data deluge to make informed decisions and derive real business value from their applications. AI and Machine Learning take Data Analytics to new levels. They can help businesses identify new product opportunities and also uncover hidden risks. Machine intelligence is already built into predictive and prescriptive analytics tools, speeding insights and enabling the analysis of vast probabilities to determine an optimal course of action or the best set of options. Over time, more sophisticated forms of AI will find their way into analytics systems, further improving the speed and accuracy of decision-making. Rather than querying a system and waiting for a response, the trend has been toward interactivity using visual interfaces. In the near future, voice interfaces will become more common, enabling humans to carry on interactive conversations with digital assistants while watching the analytical results on a screen. Analytics makes businesses more efficient; it enables them to cut costs and lower ongoing operational expenditures. It also helps them respond more quickly and agilely to changing market conditions – making them more competitive and thus driving top line revenue in both the near term and long term strategic sales. Vendors Profiled: AppDynamics, BMC, Cisco, IBM, Microsoft, Oracle, SAP and SAS. It also discusses how non-traditional vendors in the carrier and networking segments e.g. Dell/EMC, GE, Google, Verizon and Vodafone have fully embraced AIOps and analytics via partnerships, acquisitions and Research and Development (R&D) initiatives and have moved into this space and challenged the traditional market leaders. And it will provide an overview of the latest Mergers and Acquisitions (M&A) and their impact on the Analytics industry.

December: ITIC 2021 Technology and Business Outlook

Description: This Report will be based on ITIC survey results that poll IT administrators and C-level executives on a variety of forward looking business and technology issues for the 2020 timeframe. Topics covered will include: Security, IT staffing and budgets; application and network infrastructure upgrades; hardware and software purchasing trends and cloud computing.

Survey Methodology

ITIC conducts independent Web-based surveys that contain multiple choice and essay questions. In order to ensure the highest degree of accuracy, we employ authentication and tracking mechanisms to prohibit tampering with the survey results and to prohibit multiple votes by the same party. ITIC conducts surveys with corporate enterprises in North America and in over 25 countries worldwide across a wide range of vertical markets. Respondents range from SMBs with 25 to 100 workers to the largest multinational enterprises with over 100,000 employees. Each Report also includes two dozen first person customer interviews and where applicable, vendor and reseller interviews. The titles of the survey respondents include:

Network administrators
VPs of IT
Chief information officers (CIOs)
Chief technology officers (CTOs)
Chief executive officers (CEOs)
Chief Information Security Officers (CISOs)
Chief Marketing Officers (CMOs)
Consultants
Application developers
Database Administrators
Telecom Manager
Software Developer
System Administrator
IT Architect
Physical Plant Facilities Manager
Operations Manager
Technical Lead
Cloud Managers/Specialists
IoT Manager
Server Hardware/Virtualization Manager

ITIC welcomes input and suggestion from its vendor and enterprise clients with respect to surveys, survey questions and topics for its Editorial Calendar. If there are any particular topics or questions in a specific survey that you’d like to see covered, please let us know and we will do our best to address it.

About Information Technology Intelligence Corporation (ITIC)

ITIC, founded in 2002, is a research and consulting firm based in suburban Boston. It provides primary research on a wide variety of technology topics for vendors and enterprises. ITIC’s mission is to provide its clients with tactical, practical and actionable advice and to help clients make sense of the technology and business events that influence and impact their infrastructures and IT budgets. ITIC can provide your firm with accurate, objective research on a wide variety of technology topics within the network infrastructure: application software, server hardware, networking, virtualization, cloud computing, Internet of Things (IoT) and Security (e.g. ransom ware, cyber heists, phishing scams, botnets etc.). ITIC also addresses the business issues that impact the various technologies and influence the corporate business purchasing decisions. These include topics such as licensing and contract negotiation; GDPR; Intellectual Property (IP); patents, outsourcing, third party technical support and upgrade/migration planning.

For more information visit ITIC’s website at: www.itic-corp.com.

To purchase or license ITIC Reports and Survey data contact: Fred Abbott

Email: fhabbott@valleyviewventures.com;

Valley View Ventures, Inc.

Phone: 978-254-1639

www.valleyviewventures.com

ITIC Editorial Calendar Read More »

IBM, Lenovo, HPE and Huawei Servers Maintain Top Reliability Rankings; Cisco Makes Big Gains IBM, Lenovo hardware up to 24x more reliable; 28x more economical vs. least reliable White box servers

2019, ITIC Reports & Surveys / By Laura DiDio

ITIC’s latest 2019 Global Server Hardware, Server OS Reliability Mid-Year Update survey results indicate that mission critical servers from IBM, Lenovo, Hewlett-Packard Enterprise (HPE) and Huawei all maintained their top positions, achieving “four to six nines” of uptime.
These findings come at a time when businesses’ demand for high reliability and continuous, uninterrupted data access is at an all-time high.
ITIC’s latest survey data finds that the most reliable mainstream server platforms – the IBM Power Systems, Lenovo ThinkSystem, Hewlett-Packard Enterprise (HPE) and Huawei KunLun deliver up to 24x more uptime and availability than the least dependable unbranded “White box” servers. Additionally, the superior uptime of the above top ranked mission critical hardware makes them up to 28x more economical and cost effective than the least stable White box servers.
High end mission critical server distributions from IBM, Lenovo, HPE and Huawei each recorded just under or approximately two (2) minutes of per server, per annum unplanned downtime due to inherent flaws in the underlying hardware or component parts (See Exhibit 1). By contrast, the least consistent hardware – unbranded White box servers – averaged 49 minutes of unplanned per server, per annum downtime due to problems or failures with the server or its components (e.g. hard drive, memory, cooling systems etc.).
Server hardware reliability directly impacts ongoing daily business transactions and productivity. There are immediate monetary costs associated with server outages of even a few minutes. The disparity in the annual downtime cost comparisons among the top performing and the least reliable server hardware, is eye-opening.

A single hour of downtime calculated at $100,000 equates to $1,667 per server/per minute.

Corporations that deploy the most highly reliable servers: the IBM Power Systems; Lenovo ThinkSystem; HPE Superdome and Huawei KunLun (in that order) that averaged just under or about two (2) minutes of unplanned per server downtime, potentially could expect to lose approximately $3,000 per server/per minute for an hour of downtime calculated at a very conservative $100,000. By contrast, businesses that deploy the least reliable unbranded White box servers which recorded 49 minutes of unplanned per server annual downtime due to the inherent hardware instability could potentially lose $81,683 based on hourly downtime costs of $100,000. The superior economics of the most reliable versus least reliable servers is even more apparent for businesses that estimate or calculate hourly downtime losses of $300,000; $500,000 or $1,000,000 or higher.

Servers are the bedrock upon which the entire network infrastructure and extended network ecosystem rests. When servers fail, data access is denied. Business stops. Productivity ceases. Revenue suffers.

Some 86% of organizations now require a minimum 99.99% reliability for their firms’ server hardware, operating systems and main line-of-business applications to ensure productivity and deliver uninterrupted data access. High reliability and availability also safeguards the corporation’s daily operations, business processes and revenue stream.

IBM Z, IBM POWER, Lenovo ThinkSystem, HPE Integrity and Huawei KunLun Servers Maintain Highest Uptime Rankings

The latest ITIC 2019 Reliability Mid-Year Update survey polled over 800 corporations from July through early September. The study compared the reliability and availability of over one dozen of the most widely deployed mainstream server platforms and one dozen operating system (OS) distributions. ITIC’s latest study updated a select subset of the survey questions from its annual 2019 Global Server Hardware, Server OS Reliability poll. The poll also tracked the impact of pivotal issues like security, human error, software flaws and aging server hardware on corporate server reliability. To obtain the most accurate and unbiased results, ITIC accepted no vendor sponsorship.

Organizations conduct business 24 x 7 irrespective of time or location, 365 days a year. Corporations continue to expand their operations into the cloud and connect people, applications and devices via the Internet of Things (IoT). Applications like Analytics, AI and Business Intelligence (BI) are complex and compute intensive. They place greater demands on the server hardware. The corporate workforce is increasingly mobile. Users access data from myriad devices. Companies require fast, efficient processing and throughput. It must be secure by design, secure in use, secure in transmission and secure at rest.

To reiterate, all of the high end mission critical servers maintained their top ranked positions from ITIC’s earlier 2019 Global Server Hardware Server OS Reliability Survey published in the first calendar quarter of this year.
The IBM Z mainframe system is in a class of its own, delivering true fault tolerance – “six nines” – 99.9999% uptime to 89% of enterprise users. It delivered imperceptible instances of inherent server failure – 0.74 seconds per/server due to any inherent flaws in the server hardware.

Among the mainstream server distributions, IBM’s Power Systems topped the poll, registering a record low of 1.75 minutes per server downtime followed very closely by the Lenovo Think System servers with 1.88 minutes of per server downtime due to any flaws in the server hardware. Hewlett Packard Enterprise’s (HPE) Superdome X, Huawei’s KunLun FusionServer x86 platforms each recorded 2 minutes of server downtime due to any underlying problems with the server hardware.
Each of these distributions delivered a solid “five nines,” 99.999% of inherent hardware reliability. These leading edge server platforms experienced minimal amounts of unplanned downtime due to flaws in the server hardware or any of its component parts.
ITIC’s 2019 Reliability Mid-Year Update Survey did deliver a few surprises. Cisco Systems’ Unified Computing System (UCS) servers – which are frequently deployed at the network edge – showed a marked improvement in reliability. The Cisco UCS servers reduced per server/per annum downtime by nearly 50% from the 4.1 minutes in ITIC’s prior first quarter reliability survey to 2.3 minutes in the latest poll.
ITIC’s Mid-Year Update survey for the first time also included uptime statistics for Inspur Systems, headquartered in Jinan, China as one of the top five server vendors worldwide in terms of shipments. Inspur server offerings scored in the middle range of hardware platforms with 9.1 minutes of unplanned downtime.

Metrics of three, four and five nines of uptime – 99.9%, 99.99% and 99.999%, – equate to 8.76 hours; 4.38 hours, 52.56 and 5.26 minutes of per server/per annum downtime, respectively.

IBM, Lenovo, HPE and Huawei Servers Maintain Top Reliability Rankings; Cisco Makes Big Gains IBM, Lenovo hardware up to 24x more reliable; 28x more economical vs. least reliable White box servers Read More »

Hourly Downtime Costs Rise: 86% of Firms Say One Hour of Downtime Costs $300,000+; 34% of Companies Say One Hour of Downtime Tops $1Million

2019, ITIC Reports & Surveys / By Laura DiDio

Hourly downtime costs continue to increase for all businesses irrespective of size or vertical market. This trend has been evident over the last five to seven years. ITIC’s latest 2019 Global Server Hardware, Server OS Reliability Survey, which polled over 1,000 businesses worldwide from November 2018 through January 2019, found that a single hour of downtime now costs 98% of firms at least $100,000. And 86% of businesses say that the cost for one hour of downtime is $300,000 or higher; this is up from 76% in 2014 and 81% of respondents in 2018 who said that their company’s hourly downtime losses topped $300,000. Additionally, ITIC’s latest 2019 study indicates that one-in-three organizations – 34% – say the cost of a single hour of downtime can reach $1 million to over $5 million. These statistics are exclusive of any litigation, fines or civil or criminal penalties that may subsequently arise due to lawsuits or regulatory non-compliance issues.

Given organizations’ near-total reliance on systems, networks and applications to conduct business 24 x 7, it’s safe to say that the cost of downtime will continue to increase for the foreseeable future.

Although large enterprises with over one thousand employees may experience the largest actual monetary losses, downtime can be equally devastating to small and mid-sized businesses that typically lack the financial resources of larger firms. A single hour of downtime that occurs during peak usage hours or even a five, 10, 20 or 30 minute outage that disrupts productivity during a critical business transaction, can deal corporations a significant monetary blow, damage their reputation and result in litigation. For SMBs that lack the financial resources of their larger enterprise counterparts, extended downtime could potentially put them out of business.

At the same time, ITIC survey data shows that an 85% majority of corporations now require a minimum of “four nines” of uptime – 99.99% for mission critical hardware, operating systems and main line of business (LOB) applications. This is the equivalent of 52 minutes per server/per annum or 4.33 minutes per server/per month of unplanned downtime. This in an increase of four (4) percentage points from ITIC’s 2017 – 2018 Reliability survey.

The message is clear: in today’s Digital Age of “always on” interconnected networks, businesses demand near-flawless and uninterrupted connectivity to conduct business operations. When the connection is lost, business ceases. This is unacceptable and expensive to all parties.

High reliability, availability and strong security are all imperative in order to conduct business.

Hourly Downtime Costs Rise: 86% of Firms Say One Hour of Downtime Costs $300,000+; 34% of Companies Say One Hour of Downtime Tops $1Million Read More »

ITIC 2020 Editorial Calendar

2019, 2020, Editorial Calendars / By Laura DiDio

March/April 2020: ITIC 2020 Global Server Hardware and Server OS Reliability Survey

The 2020 ITIC Global Reliability Survey has also been updated and expanded to include questions on:

Component level failure data comparisons between IBM Power Servers and Intel-based x86 servers such as Dell, HP, Huawei, Lenovo and Cisco.
Percentage of component level failure data comparisons by vendor according to age (e.g. new to three months; three to six months; six months to 1 year; 1 to 2 years; 2 to 3 years; 3 to 4 years; 4 to 5 years; over five years).
Which component parts fail and frequency of failure
A percentage breakout of server parts failures for parts such as hard disk drives(HDD), processors, memory, power components, fans, or other
Where available, how the component failed. For example: memory multi-bit errors, HDD read failures, processor L1/L2 cache errors, etc.

April/May: 2020 Hourly Cost of Downtime

May/June 2020: ITIC Sexual Harassment, Gender Bias and Pay Equity Survey

July/August: 2020 IoT Deployment and Usage Trends Survey and Report

August: ITIC 2020-2021 Security Trends

Security threats in the age of COVID-19
The most prevalent type of security hacks
The percentage of corporations that experienced a security hack
The duration of the security hack
The severity of the security hack
The cost of the security hack
Monetary losses experienced due to security breaches
Lost, damaged, destroyed or stolen data due to a security breach
The percentage of time that corporations spend securing their networks and data assets
Specific security policies and procedures companies are implementing
The issues that pose the biggest threats/risks to corporate security

August/September: ITIC 2020 Global Server Hardware Server OS Reliability Survey Mid-Year Update

October/November: AI, Machine Learning and Data Analytics Market Outlook

December: ITIC 2021 Technology and Business Outlook

Survey Methodology

Network administrators
VPs of IT
Chief information officers (CIOs)
Chief technology officers (CTOs)
Chief executive officers (CEOs)
Chief Information Security Officers (CISOs)
Chief Marketing Officers (CMOs)
Consultants
Application developers
Database Administrators
Telecom Manager
Software Developer
System Administrator
IT Architect
Physical Plant Facilities Manager
Operations Manager
Technical Lead
Cloud Managers/Specialists
IoT Manager
Server Hardware/Virtualization Manager

About Information Technology Intelligence Corporation (ITIC)

To purchase or license ITIC Reports and Survey data contact: Fred Abbott

Email: fhabbott@valleyviewventures.com;

Valley View Ventures, Inc.

Phone: 978-254-1639

www.valleyviewventures.com

ITIC 2020 Editorial Calendar Read More »

Hourly Downtime Tops $300K for 81% of Firms; 33% of Enterprises Say Downtime Costs >$1M

2017, ITIC Reports & Surveys / By Laura DiDio

The cost of downtime continues to increase as do the business risks. An 81% majority of organizations now require a minimum of 99.99% availability. This is the equivalent of 52 minutes of unplanned outages related to downtime for mission critical systems and applications or ,just 4.33 minutes of unplanned monthly outage for servers, applications and networks.

Over 98% of large enterprises with more than 1,000 employees say that on average, a single hour of downtime per year costs their company over $100,000, while an 81% of organizations report that the cost exceeds $300,000. Even more significantly: three in 10 enterprises – 33% – indicate that hourly downtime costs their firms $1 million or more (See Exhibit 1). It’s important to note that these statistics represent the “average” hourly cost of downtime. In a worst case scenario – if any device or application becomes unavailable for any reason the monetary losses to the organization can reach millions per minute. Devices, applications and networks can become unavailable for myriad reasons. These include: natural and man-made catastrophes; faulty hardware; bugs in the application; security flaws or hacks and human error. Business-related issues, such as a Regulatory Compliance related inspection or litigation, can also force the organization to shutter its operations. For whatever the reason, when the network and its systems are unavailable, productivity grinds to a halt and business ceases.

Highly regulated vertical industries like Banking and Finance, Food, Government, Healthcare, Hospitality, Hotels, Manufacturing, Media and Communications, Retail, Transportation and Utilities must also factor in the potential losses related to litigation as well as civil penalties stemming from organizations’ failure to meet Service Level Agreements (SLAs) or Compliance Regulations. Moreover, for a select three percent of organizations, whose businesses are based on high level data transactions, like banks and stock exchanges, online retail sales or even utility firms, losses may be calculated in millions of dollars per minute. …

Hourly Downtime Tops $300K for 81% of Firms; 33% of Enterprises Say Downtime Costs >$1MRead More »

Hourly Downtime Tops $300K for 81% of Firms; 33% of Enterprises Say Downtime Costs >$1M Read More »

Cost of Hourly Downtime Soars: 81% of Enterprises Say it Exceeds $300K On Average

2016, ITIC Reports & Surveys / By Laura DiDio

The only good downtime is no downtime.

ITIC’s latest survey data finds that 98% of organizations say a single hour of downtime costs over $100,000; 81% of respondents indicated that 60 minutes of downtime costs their business over $300,000. And a record one-third or 33% of enterprises report that one hour of downtime costs their firms $1 million to over $5 million.

For the fourth straight year, ITIC’s independent survey data indicates that the cost of hourly downtime has increased. The average cost of a single hour of unplanned downtime has risen by 25% to 30% rising since 2008 when ITIC first began tracking these figures.

In ITIC’s 2013 – 2014 survey, just three years ago, 95% of respondents indicated that a single hour of downtime cost their company $100,000. However, just over 50% said the cost exceeded $300,000 and only one in 10 enterprises reported hourly downtime costs their firms $1million or more. In ITIC’s latest poll three-in-10 businesses or 33% of survey respondents said that hourly downtime costs top $1 million or even $5 million.

Keep in mind that these are “average” hourly downtime costs. In certain use case scenarios — such as the financial services industry or stock transactions the downtime costs can conceivably exceed millions per minute. Additionally, an outage that occur in peak usage hours may also cost the business more than the average figures cited here. …

Cost of Hourly Downtime Soars: 81% of Enterprises Say it Exceeds $300K On AverageRead More »

Cost of Hourly Downtime Soars: 81% of Enterprises Say it Exceeds $300K On Average Read More »

Mean Time to Detection is a Critical Barometer

Survey Methodology

Survey Methodology

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