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Resilient African enterprises are reducing cost of downtime
Splunk in collaboration with Oxford Economics , released a new global report , The Hidden Costs of Downtime , which highlights the direct and hidden costs of unplanned downtime . The survey calculated the total cost of downtime for Global 2000 companies to be $ 400B annually , or 9 % of profits , when digital environments fail unexpectedly .
The analysis revealed the consequences of downtime go beyond immediate financial costs and take a lasting toll on a company ’ s shareholder value , brand reputation , innovation velocity and customer trust .
10 industries : energy and utilities , financial services , healthcare and life sciences , information services and technology , manufacturing , communications and media , public sector , retail , transportation and logistics , and travel and hospitality .
The report highlighted the origins of downtime . 56 % of downtime incidents are due to security incidents such as phishing attacks , while 44 % stem from application or infrastructure issues like software failures . Human error is the number one cause of downtime and the biggest offender for both scenarios .
Source : The Hidden Costs of Downtime by Splunk and Oxford Economics
Oxford Economics researchers surveyed 2,000 executives from Forbes ’ Global 2000 companies in technology , including security , IT , and engineering titles , finance , including Chief Financial Officers , and marketing functions , including Chief Marketing Officers .
The report surveyed 53 countries , in regions including Africa , APAC , Europe , Middle East , North America and South America . In addition , respondents were from
There are practices that can help reduce downtime occurrences and lessen the impacts of direct and hidden costs . The research revealed an elite group of companies , the top 10 %, are more resilient than the majority of respondents , suffering less downtime , having lower total direct costs and experiencing minimal impacts from hidden costs .
These organisations are defined as resilience leaders and their shared strategies and traits provide a blueprint for bouncing back faster . Resilience leaders are also more mature in their adoption of Generative AI , expanding their use of embedded Generative AI features in existing tools more than at four times the rate of other organisations .
Resilience leaders , or companies that recover faster from downtime , share common traits and strategies that provide a blueprint for digital resilience . They also invest more strategically , rather than simply investing more .
Investing in both security and observability . Compared to other respondents , resilience leaders spend $ 12M more on cybersecurity tools and $ 2.4M more on observability tools .
Embracing the benefits of GenAI . Resilience leaders are also more mature in their adoption of Generative AI , expanding their use of embedded Generative AI features in existing tools at four times the rate , compared to the remaining respondents .
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