New global research calculates unplanned downtime to cost Global 2000 companies US$400B annually. Stock prices can plunge up to 9% after a single incident and take 79 days to recover.

In collaboration with Oxford Economics, Splunk has also released a new global report The Hidden Costs of Downtime, which highlights the direct and hidden costs of unplanned downtime.

Unplanned downtime — any service degradation or outage of a business system — can range from a frustrating inconvenience to a life-threatening scenario for customers. The report surveyed 2,000 executives from the largest companies worldwide (Global 2000) and showed downtime causes both direct and hidden costs as defined below:

  • Direct costs are clear and measurable to a company. Examples of direct costs are lost revenue, regulatory fines, missed SLA penalties and overtime wages.
  • Hidden costs are harder to measure and take longer to have an impact, but can be just as detrimental. Examples of hidden costs include diminished shareholder value, stagnant developer productivity, delayed time-to-market, tarnished brand reputation and more.