Median cost of IT outages at Indian firms now Rs 520 cr a year: Report
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The median cost of IT outages at Indian organisations now stands at around Rs 520 crore ($62.79 million) per year, a new report said on Wednesday.
According to the web analytics and software company New Relic, about 74 per cent said that the time taken to resolve these outages improved after adopting observability solutions.
"The Observability Forecast reveals that 43 per cent of businesses in India have siloed telemetry data, creating blindspots in monitoring and maintaining system health. It’s clear that full-stack observability can help resolve some of the most pressing challenges that are facing Indian organisations," said Peter Marelas, Chief Architect, APJ, New Relic.
The report surveyed 1,700 technology professionals across 15 countries. According to the report, organisations in India are challenged with tool sprawl.
They used more tools than any other country by a wide margin with almost 72 per cent using over 10 tools for observability.
Although no respondents in India use just one single platform for observability, 51 per cent said they prefer a single, consolidated platform and highlighted too many monitoring tools as the biggest challenge to achieving full-stack observability.
Additionally, a third of Indian organisations (33 per cent) said they plan on consolidating their tools next year to maximise the value of their observability spend.
Moreover, the report said that almost half (45 per cent) of respondents in India stated that critical business app outages cost more than $500K per hour of downtime.
About 44 per cent said observability improves revenue retention and 35 per cent said it creates revenue-generating use cases.
Globally, respondents with full-stack observability are more likely to experience the fastest mean time to resolution (MTTR) and were 19 per cent more likely to resolve high-business-impact outages in 30 minutes or less compared to those without full-stack observability, the report mentioned.
As the cost of critical business application outages rises, nearly a third (32 per cent) of respondents in India said the cost of that significant downtime was more than $1 million per hour of downtime -- more than any other country.
