In today’s fast-paced capital markets, just minutes of downtime can throttle your bottom line. You can protect your budget from these costs by knowing how downtime affects your business.
What is the Cost of Downtime?
Every investor relations program will have planned outages as you update services and improve security, according to the investor relations consulting experts in Q4. These scheduled upgrades aren’t causing concern. The problem lies with unplanned interruptions that blindside your IROs.
The exact cost of unscheduled downtime depends on a lot of factors — from your company size, market volatility, and industry vertical. However, you can ballpark this figure by looking at some studies.
In 2014, research and consulting firm Gartner estimated network downtime costs an average of $5,600 per minute — or $360,000 an hour.
A year later, these costs increased when Avaya, a multination tech organization, showed costs ranging from $140,000 to $540,000 an hour.
Another year after that, the Ponemon Institute also estimated the average downtime would cost about $540,000 per hour. However, its 2016 research shows the worst outages could top out at $17,000 per minute. That’s a whopping $1,020,000 per hour.
The Ongoing Pandemic’s Impact on Downtime
A lot has happened since 2014. Namely, the COVID-19 outbreak has accelerated digitization.
In 2020, the corporate world shuttered its doors and canceled in-person investor conferences, causing many businesses to race to adapt.
Like other companies, you likely invested in better security to support work-from-home teammates. You adopted innovative webcasting tools to pivot to virtual bus tours, roundtables, and investor conferences.
Since more of your day-to-day operations rely on uninterrupted uptime, the cost of downtime has likely increased since the Ponemon Institute’s last report in 2016.
What Can You Do to Limit Downtime?
First and foremost, choosing the right investor relations tools can insulate your bottom line from downtime.
The best investor relations tools are intuitive programs that prioritize functionality, so you’re wasting less time waiting for your software to respond and perform essential tasks.
This software often ends up being cloud-based programs that consolidate all your IR intelligence into one place, so you can quickly track and report analytics in real-time. It also includes IR websites and webcasting tools that easily integrate with your desktop program.
These investor relations tools can also guarantee a 99.99% uptime, so you can stay connected without worry. That 0.01% usually comes from infrequent yet essential scheduled updates that improve your IR experience, and you’ll receive advance warning to ensure you have a backup plan in place.
Software glitches aren’t the only source of your downtime when power outages and cyberattacks could also threaten your team’s ability to work. Once you upgrade your investor relations tools, make sure they can perform at their best by cracking down on your cybersecurity and investing in power backups.
Losing network access to your CRM analytics and IR website means you’ve lost the pulse on relative performance, sentiment, and volatility. Even a brief interruption in this IR intelligence can leave your team off balance and unprepared.
But more importantly, these unplanned network interruptions come with an enormous cost. In some cases, it comes with a $1 million price tag.
Save yourself the bill by upgrading your tech, enhancing your security, and investing in alternative power sources.