Research reveals the true cost of system downtime

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SERVERS 2Research by Agilitas, the leading European innovator of customer driven inventory-as-a-service solutions has today revealed the results of research into the impact of inventory-as-a-service.

The survey of resellers, MSPs, and systems integrators revealed that 54% estimated their customers could lose anything from £10,000 up to £1m from just a single hour of downtime. More worryingly, 40% are seeing over four hours of downtime when hardware goes wrong.

“Having IT hardware spares available has for many years been essential to business continuity and maximum uptime, however, as organisations become more dependent on technology, service level agreements (SLAs) are being shortened and expectations raised,” explains Shaun Lynn, CEO of Agilitas. “Two hour part to site SLAs 24x7x365 are becoming the norm,”

The research also revealed:

  • 40% of customers see on average over four hours of downtime when hardware fails
  • 40% of providers find meeting SLAs the greatest challenge to providing inventory support to customers, and 25% sourcing parts
  • 20% are struggling to get parts to customers on time in order to meet critical SLAs

“Meeting SLAs and reducing downtime through flexible support should be the key aim for service providers” argues Lynn. “Inventory-as-a-service’s ability to distribute parts quickly from multiple locations means that providers won’t need to worry about getting a part from A-to-B again, coupled with direct access to technical and remote support 24x7x365.”

Agilitas also surveyed service providers running their own in-house operations, revealing:

  • a quarter currently run complete in-house inventory operations despite the rising cost of office and warehouse space
  • over a fifth aren’t sure how much storing parts costs each year
  • one in seven say the high costs of managing inventory is preventing investment in other areas of their business

Lynn explains: “The increasingly high capital (CAPEX) cost of managing hardware often makes it unsustainable for many IT providers. Organisations want an always-on service, with two hour SLAs met 24x7x365. As a result, organisations moving towards inventory-as-a-service are reducing CAPEX, as the service keeps costs stable, ensuring inventory management is an operational (OPEX), not capital expenditure.”

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