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Business Trends

How Downtime and Outages Hurt Your Business

In today’s times, where businesses generate a major part of their revenue online, it is important to remain up and running 24/7. When you experience downtime for any length of time, it can have a negative chain reaction for your business operations. With most businesses offering cloud-based products and services, the cost of downtime is greater than before.

 

There are several ways that downtime and outages can negatively affect your business operations and we’ve outlined them here so you can put the necessary prevention measures in place to save precious time and money.

 

Data loss

 

The worst-case scenario when you experience outages is that data servers are vulnerable to data loss and exposure. And it will have major consequences for your clients’ security. Even if your data is securely backed up, when your systems are down even for a short time, it can cause customers to panic and may lead to mistrust.

 

One of the best ways to protect your business and clients is through colocation data centers. Your data is stored in a dedicated server monitored 24/7 in one of Logix Texas data centers. Their data solutions offer you fault-tolerant infrastructure intended for simpler disaster recovery and better protection against outages.

 

Lost employee productivity 

 

As businesses and individuals move their operations into the digital space, often using cloud-based solutions, they become more vulnerable when outages occur. An outage can interrupt the entire workflow system and, as a result, leaves employees with nothing to do until the problem is fixed.

 

These interruptions in productivity can be costly to maintain and often you’ll end up paying wages and salaries despite a lost day. The best thing to ensure your business runs without interruption is to secure as many processes from the possible effects that downtime may cause.

 

Lost opportunities

 

For most businesses selling products and services online, network interruptions result in customers being able to make purchases and fewer customers mean less revenue. This is especially the case if your business relies on network connectivity to deliver a product or service.

 

Servers crash all the time and it’s usually because they are overworked by the number of visitors to a site. It’s especially the case if sales or limited time deals are being offered. It’s difficult to predict when downtime will occur, but the best practice is to be as prepared as possible.

 

Brand damage

 

Another way that outages can hurt your business is through your brand reputation. In most cases, downtime on a network is short-lived and can be attended to in good time. But, when customers experience network interruptions often on your site, their trust in your brand’s ability to deliver a service is hindered.

 

If your company experiences frequent downtime, consider switching providers. Your business reputation depends on it. Today, customers are looking for the most convenient and reliable services – something that can be found elsewhere, if not with you. So, for positive brand interactions, prioritize modern and reliable connectivity infrastructure.

 

SLA payouts

 

Your customers want assurance that you will deliver quality products and services to them when they need them. Some companies will provide SLA uptime contracts that specify financial remuneration in the event of server downtime. Downtime as a result of in-house company software and downtime because of third-party software are two different things.

 

The clauses provided in the SLA should be clear and distinctions should be made between the two if it affects remuneration, which will ensure a positive customer experience. While your company may be entitled to compensation in regards to the latter, that may not be enough to repair the damage your brand incurred because of a third-party mishap.

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