Business interruptions due to website outages incur substantial monthly expenses for various organizations.
In the digital age, fast, reliable hosting is not just a luxury, but an essential component for a business to grow sustainably, according to Sachin Puri, President of Liquid Web. This assertion is backed by recent statistics, which reveal that hosting-related issues can have significant financial repercussions for businesses.
A survey of 500 business owners, developers, and IT decision-makers reveals an average loss of 5 hours per month due to website downtime. This downtime, coupled with the costs of fixing hosting issues, results in an average monthly loss of around $418 for typical businesses. Some sectors, such as education and healthcare, experience higher losses, with education reporting an average of $663 per month and healthcare $478. In extreme cases, one in five companies can lose more than $2,500 per month due to hosting downtime alone.
The financial impact of downtime is particularly significant for eCommerce or businesses dependent on web traffic. Even seconds of delay can reduce conversions by 7%, and minutes of downtime during peak events can cause thousands of dollars in lost revenue. More severe industry-wide estimates place the cost of IT downtime at an average of $5,600 per minute, amounting to more than $300,000 per hour, but these figures typically apply to very large enterprises with mission-critical systems.
Security threats also contribute to these losses. Around half of businesses reported that poor hosting led to security vulnerabilities, and roughly one-third experienced data breaches due to poor hosting security. These incidents cause downtime, reputational damage, and often costly remediation.
These findings underscore the importance of investing in reliable, secure hosting infrastructure. Ryan MacDonald, chief technology officer at Liquid Web, emphasises this point, stating that businesses should start treating hosting as a critical investment in security, performance, and growth.
However, switching hosting providers can also come with its own set of challenges. Nearly seven-in-ten businesses have delayed changing hosting providers due to fears around downtime, migration costs, and technical complexity. Despite this, 26% of businesses would switch hosting providers due to frequent downtime, and 28% due to slow website performance.
In summary, poor hosting infrastructure and security vulnerabilities translate into substantial ongoing costs for companies across industries. Businesses should prioritise investing in reliable hosting solutions to minimise downtime, reduce security risks, and safeguard their growth.
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- The financial consequences of website downtime can be substantial, with businesses experiencing an average monthly loss of $418 due to hosting issues.
- Security vulnerabilities caused by poor hosting can result in data breaches and downtime, causing additional financial losses and reputational damage.
- Investing in reliable and secure hosting infrastructure is crucial for businesses, as it can help minimize downtime, reduce security risks, and support sustainable growth.
