Justifying investments in ITOps tooling, headcount, and workflows takes solid, industry-vetted data. Leading IT research firm Enterprise Management Associates (EMA) conducted in-depth research with 300+ IT leaders in North America and EMEA to provide BigPanda with a detailed, 360-degree picture of the modern outage on average and according to company size. These slides provide results from this research-based data, including the cost of outages, their frequency and duration, leading causes, and effective measures against them.

1. | @ema_research
2023 ITOps Budgeting to Win:
Use New Research-Based
Outage Cost Data
Valerie O’Connell
Research Director
EMA
Mohan Kompella
VP of Product Marketing
BigPanda

2. | @ema_research
Watch the On-Demand Webinar
• 2023 ITOps Budgeting to Win: Use New Research-Based Outage Cost
Data On-Demand Webinar:
https://info.enterprisemanagement.com/itops-budgeting-to-win-
webinar-ss
• Check out upcoming webinars from EMA here:
https://www.enterprisemanagement.com/freeResearch

3. | @ema_research
| @ema_research
Featured Speakers
Valerie came to EMA with decades of senior-level
experience in the effective marketing of technology.
From strategic positioning with practical go-to-market
planning and compelling messaging, Valerie works with
her clients to drive business. She excels at making the
value proposition of complex products clear in
crowded markets and at equipping sales forces to
strike with precision
© 2022 Enterprise ManagementAssociates, Inc. 3
Valerie O'Connell
Research Director
EMA
Mohan Kompella
VPof Product Marketing
BigPanda
Mohan has over 15 years of experience in IT Ops and
Monitoring. During this time, he worked closely with
F1000 and other large enterprise customers' IT Ops and
NOC teams in a variety of consulting, architecture,
implementation and pre-sales engineering roles. Prior
to BigPanda, Mohan led Product Marketing for
Lightbend.

4. BigPanda © 2022 | All rights reserved | 4 |
Digital transformation broke IT operations
Changes
Observability
and monitoring
Topology
Modern
infrastructure
and applications
Legacy
infrastructure and
applications
DevOps
and SRE
Lines of
business
L1
Engineers
L2
Domain
experts
L3
Shared
services
L1
NOC
L1
Messaging
Runbook
automation
Notifications
Ticketing

5. BigPanda © 2022 | All rights reserved | 5 |
This creates frequent, long, and painful outages
Changes
Observability
and monitoring
Topology
Modern
infrastructure
and applications
Legacy
infrastructure and
applications
DevOps
and SRE
Lines of
business
L1
Engineers
L2
Domain
experts
L3
Shared
services
L1
NOC
L1
Messaging
Runbook
automation
Notifications
Ticketing
Outages are
expensive
Outages =
downtime
Teams are stuck
in reactive
firefighting

6. BigPanda © 2022 | All rights reserved | 6 |
01 02 03
What’s the fix?
Savvy ITOps, NOC and SRE leaders do 3 things
Invest
in their
tools and teams
Measure
the performance of their
teams and tools
Improve
their tools, teams and
incident workflows

7. BigPanda © 2022 | All rights reserved | 7 |
But…
…It’s really, really, really hard
to estimate the cost of an outage.

8. BigPanda © 2022 | All rights reserved | 8 |

9. | @ema_research
“What is the cost of an IT outage?”
© 2022 Enterprise ManagementAssociates, Inc. 9
According to Gartner,
the average cost of
IT downtime is
$5,600 per minute.

10. | @ema_research
Really?
© 2022 Enterprise ManagementAssociates, Inc. 10
Quote from original 2014 Gartner blog, written to drive
traffic to a Gartner document, "Downtime Cost
Calculator for Data Center Disaster Recovery Planning."
Link to the original 2014 blog,
https://blogs.gartner.com/andrew-
lerner/2014/07/16/the-cost-of-downtime/
includes the disclaimer:
“The Gartner Blog Network provides an opportunityfor
Gartner analysts to test ideas and move research
forward. Because thecontent posted by Gartner analysts
on thissitedoes not undergo our standard editorial
review, all comments or opinions expressed hereunder
are those of the individual contributorsand do not
represent the views of Gartner, Inc. or its management.”
“This is a follow-up to last week's post
on network downtime as several have
asked, “What is the cost of network
downtime?” Based on industry surveys, the
number we typically cite is $5,600
p/minute, which extrapolates to well over
$300K p/hour.”
STIC and Ponemon Institute($9,000/minute) are also
sometimes quoted, but the “Gartner”number reigns as
the urban legend of record.

11. | @ema_research
BigPanda and EMA
© 2022 Enterprise ManagementAssociates, Inc. 11
How to help potential clients cost-consider their BigPanda investments
A researched basis for talking about IT outage costs
A defensible, not definitive, average cost of unplanned outages
Demographics and outage questions were asked of all 300 participants.
Specific cost questions were asked in local currency and
reported/consolidated in US dollars
Caveats:
These cost estimates don’t take into consideration the large number of
factors that could go into cost determination (or be left out) – factors that
differ from one organization to another and account for a significant
degree of variability.
And the universal challenge to averages...
...every organization is different.

12. | @ema_research
Cost of an unplanned IT outage: $12,913 per minute
© 2022 Enterprise ManagementAssociates, Inc. 12
Outagecost/minute
by company size
$1,850 $4,542 $8,424 $24,347 $25,402
Outagecost/hour by
company size
(cost/minute x 60)
$111,000 $272,520 $505,440 $1,460,820 $1,524,120
1,000-2,500
employees
2,500-5,000
employees
5,000-10,000
employees
10,000-20,000
employees
More than
20,000
Respondent pool
company size by
number of employees
23.3% 31.7% 15.3% 10.0% 19.7%

13. | @ema_research
No formal definition of calculating unplanned outage cost
© 2022 Enterprise ManagementAssociates, Inc. 13

14. 55.0%
54.7%
43.7%
43.3%
43.0%
25.7%
Business disruption
Impact on employee productivity
Data breach/governance regulatory exposure
Lost revenue
Reputation
Hit to DevOps/SRE productivity
Which factorsare most important to your organizationwhen calculating the cost impact of an outage?
Most important factors in outage cost impacts

15. | @ema_research
The significant outage
© 2022 Enterprise ManagementAssociates, Inc. 15
How much did the most recent significant
outage cost your organization?
$1,477,843
Asked in local currency, report ed in dollars

16. | @ema_research
Cost of last significant outage by company size
© 2022 Enterprise ManagementAssociates, Inc. 16
The duration was calculated for each organization-sized category by dividing significant outage cost by
the reported average cost/minute. The average calculated duration is two hours, plus or minus.
Cost by
company size
1,000-2,500
employees
2,500-5,000
employees
5,000-10,000
employees
10,000-20,000
employees
More than
20,000
$257,545 $467,605 $1,465,800 $2,078,947 $3,119,318
Calculatedduration
in hours
2.3 1.7 2.9 1.4 2.0

17. | @ema_research
Significant outage frequency and duration
© 2022 Enterprise ManagementAssociates, Inc. 17
Fewer
than 30
minutes
20 minutes
to an hour
Up to
2 hours
2-4 hours Half a day
or more
A day
or more
22% 40% 22% 9% 5% 2%
The average was reported at one hour
ITOps reported the average as two hours,
which turns out to be more accurate
How long does a significant outageusually last?

18. AIOps and automation are offensive weapons
Which statement best describesthe cost of an
outage to your organization?
What are the top metrics used to measureAIOps
effectivenessin your organization?
38.1%
36.5%
34.9%
33.3%
31.7%
31.7%
31.7%
31.7%
30.2%
Reduced number of outages
Business outcomes: improved
business process efficiencies
Decrease in war room frequency,
duration, and people involved
Cost savings in operations (OPEX)
Number of manual tasks that are
automated or eliminated
Decrease in number of incidents
User/employee/customer
satisfaction
Business outcomes: revenue
Number of events first detected by
the service desk/user complaints
16.3%
36.0%
22.0%
12.3%
13.3%
It's increasing and likely to
continue increasing
Increased reliance on IT
guarantees continued increase
Increasing, but we think we
can lower the cost with AIOps
and automation
It has been fairly consistent
year over year
It has been decreasing
because of proactive systems
we've put in place

19. | @ema_research
AIOps makes a difference
© 2022 Enterprise ManagementAssociates, Inc. 19

20. | @ema_research
Takeaways
© 2022 Enterprise ManagementAssociates, Inc. 20
Left unchecked, outages will continue to grow in an endless loop of cost,
duration,and impact
Is $12,913 per minute the new $5,160? The modern IT outageis personal.
The averagesin this research offer a quantitative voice in the fight
against complexity.
Although thereis no “cure” for IT outages, AI and automation havea strong
track record of reducing outagefrequency and cost. They strike at the
primary,controllablecauses.
In this research alone, 23% of respondents with mature AIOps
implementations reported an average duration of a significant outage,at
less than 30 minutes. Otherwise, the averagereported was an hour plus. The
averageexperienced was two.
The best outage durationis the one that never happens at all.

21. BigPanda © 2022 | All rights reserved | 21 |
BigPanda helps you
measure and improve IT operations

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BigPanda lets you assess
the value of your observability tools

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BigPanda helps you
measure & improve your team's efficiency

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Learn more about AIOps
What’s the real cost of an
outage? Get the eBook
Try our self-guided
product tour
Contact us!
www.bigpanda.io
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