Why downtime is expensive and what you can do about it
Just like accidents, website downtime can happen to anyone, including global enterprises and institutions that have sophisticated IT infrastructure.
Take Amazon for example. The world’s largest retailer held its Prime Day holiday on mid-July where Amazon Prime members can grab products at significant discounts. Due to the heavier-than-usual web traffic caused by the event, some buyers encountered issues in accessing product pages — some were stuck on a loading page or greeted by error messages indicating that something went wrong on Amazon’s end.
For e-commerce and online retail companies, experiencing website downtime can be extremely expensive. In Amazon’s case, the company lost an estimated $1.2 million per minute.
Why is downtime expensive?
First, you face several direct losses in revenue. An hour without an online store is an hour without sales. A lot of outages are caused by too much traffic that your site and servers weren’t ready for. In these cases, you’re not just losing an hour of regular business; you’re losing an hour of peak, jam-packed business.
Not only do you lose revenue, but you incur expenses, too. Getting your website back online with the help of an IT support technician, who usually has an hourly rate, will rack up quickly. The total cost will go up if you need new equipment, your network goes out, or you need to pay extra for a faster response time.
There are also several indirect costs. Customers who are used to having a seamless online shopping experience have low tolerance for downtime. If not remedied immediately, they are unlikely to come back to your site. You lose sales, lead conversion, and potential return business.
All of these elements combined can translate to revenue loss as high as millions. In worst cases, it can even drive a company bankrupt.
Keeping your website in tip-top shape
The cloud has transformed the way we do business and there’s more to it than just storage. Here are some of the ways it can help protect your website from expensive downtime.
With the potential losses amounting to millions downtime can definitely be considered as a disaster to any company. Fortunately however there are disaster recovery services out there that aim to minimize adverse effects by allowing business operations to continue smoothly after. Our CloudServers solution powered by CloudSigma, for example, ensures that your company can do business as usual in the midst of virtual disasters. By creating a real-time backup of your data and your IT systems, you can fall over to a second virtual site almost instantly should downtime occur. Workloads are then failed back to their original locations when the crisis is resolved.
2. DDoS Mitigation
Cyber-attacks can also be a reason for downtime, and the most common type of it is a Distributed Denial of Service (DDoS) attack. These are attacks that overwhelms servers by sending multiple requests for images, files, or some other information. Being protected by DDoS Mitigation is vital especially for attack-prone organizations such as online gaming companies, financial institutions, and government agencies. Our partner NexusGuard, for example, has an Origin Protection Service which guards against threats that target network resources. The service is especially beneficial for organizations that can’t afford a second of downtime of their network assets.
3. Web Application Firewall
Apart from DDoS Mitigation, companies can protect and reinforce their servers further by applying a Web Application Firewall (WAF). This acts as a filter to any incoming traffic to a server as its purpose is to detect and block anything malicious. With this, the chances of cyber-attacks are diminished.
E-commerce companies and financial institutions aren’t the only ones that should be strategizing to prevent downtime. Especially now, in an increasingly mobile economy, websites play a vital role in reaching the right audiences.
To protect your business from website downtime, visit http://ipc.ph/.