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  • Writer's pictureHoward Wright

The Intangible Effects IT Downtime Has on Your Business

Updated: Oct 3, 2023


The Intangible Effects Technological Downtime has on your business, overlaid over a flipped open laptop
The Intangible Effects Technological Downtime has on your business

The cost of IT downtime can have a severe impact on businesses of any size. A survey conducted by CA Technologies found that $26.5 billion in revenue is lost each year due to IT downtime, with businesses suffering an average of 14 hours of downtime per year. This downtime can significantly affect a company's reputation, with half of the businesses surveyed reporting a negative impact and 18% describing it as "very damaging." The Ponemon Institute also reported that the average downtime across industries costs a company $5,600 per minute, with the highest cost of a single event reported at over $1 million.

$26.5 billion in revenue is lost each year due to IT downtime

Technological downtimes can be disastrous for a business in more ways than just its effect on the bottom line. Employees may be unable to perform their duties, which can lead to lost productivity and decreased morale. Malfunctioning systems and lack of access to the internet can result in a loss of productivity for employees who rely on these tools to perform their job functions. This can lead to missed deadlines and potentially require overtime work to make up for lost time.


the average downtime across industries costs a company $5,600 per minute
the average downtime across industries costs a company $5,600 per minute

IT recovery costs can also be significant, particularly if a business is unable to quickly restore its systems after a downtime event. In addition, the cost of restoring IT systems can be high, particularly if data is lost permanently. This can result in a loss of critical business data, which can be detrimental to a company's operations.


Supply chain ripple effects are another potential impact of technological downtimes. If a company is unable to perform its duties due to a technological issue, this can impact other businesses that rely on its services. In addition, compliance violations or materials lost can result in legal and financial consequences, including fines and lawsuits. Damage to brand loyalty is another intangible effect of technological downtime. Customers may become dissatisfied with a business that experiences frequent downtime, leading to decreased brand loyalty and potentially lost business in the long term.


In conclusion, technological downtime affects a business in more ways than just lost sales revenue. It can also result in lost employee productivity, potential employee overtime costs, IT recovery costs, cost of restoring IT systems, supply chain ripple effects, compliance violations, and damage to brand loyalty.


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