The Costly Truth: Severe Network Outages are Costing £160 Billion Globally
In a shocking revelation, research from Cisco highlights that severe network outages are wreaking havoc on businesses worldwide, leading to a staggering £160 billion in losses annually. As IT leaders grapple with the implications, it’s clear that a critical transformation in enterprise network architecture is needed.
The Shift in Thinking
A recent survey conducted by Sandpiper Research & Insights, on behalf of Cisco, polled over 8,000 senior IT and business leaders across 30 markets. The findings reveal that while most outages are triggered by congestion, cyber attacks, and misconfigurations, IT leaders are increasingly recognising the potential of robust infrastructure to enhance performance and drive future value.
Six Signals of Change Cisco identifies six key trends reshaping the network landscape:
- Strategic Priority: The network is now a top business priority.
- Mission-Critical Security: Secure networking is essential for growth.
- AI Demand: The rise of AI necessitates resilient networks.
- Revenue Growth Focus: IT leaders are leveraging AI to boost revenues.
- Infrastructure Evolution: AI is transforming network infrastructure.
- Smart Networks: There’s a strong desire to enhance network intelligence.
Unlocking Value
The study emphasises that IT leaders are already reaping financial benefits from their networks, primarily by improving customer experiences (55%), boosting efficiency (52%), and fostering innovation (51%). However, Cisco warns that much of this value is at risk without infrastructure designed for AI and real-time scaling. To fully harness their potential, IT leaders highlighted critical gaps needing attention, such as siloed systems (58%), incomplete deployments (51%), and excessive manual oversight (48%). Investing in smarter, more secure networks is the way forward.
Driving Revenue and Savings
An impressive 89% of respondents believe that enhanced networks will directly drive revenue, with 93% expecting significant cost savings through improved operations, reduced outages, and lower energy consumption.
The Foundation for Future Growth
The network has been the backbone of every digital transformation wave, and to support AI, IoT, and cloud computing at scale, a solid network foundation is crucial. Nearly all surveyed leaders (94%) anticipate that these technologies will significantly impact their networks in the next two years. However, many networks struggle to keep pace with the demands of AI. While AI-native, autonomous networks are deemed essential for future growth, only 41% have implemented intelligent features like segmentation and visibility.
The Real Cost of Outages
With 77% of respondents experiencing major outages in the past two years, the leading causes—congestion, cyber attacks, and configuration errors—are clear. These disruptions primarily affect revenue, resulting in an eye-watering £160 billion loss globally from just one severe outage per business per year.
A Call to Action
As cyber threats evolve, the network becomes the first line of defence against emerging risks. A whopping 98% of leaders see secure networking as vital to operations and growth, with 94% believing a modernised network will enhance cybersecurity.
In the words of Chintan Patel, CTO at Cisco EMEA, “The network has powered every wave of digital transformation. Those who act now will lead in the AI era.” Now is the time for IT leaders to rethink their network strategies to safeguard their organisations and drive future innovation. Don’t let outages cost you—invest in smarter, more secure networks today!