Negative Impacts of Network Outages

Network outages can result from several circumstances, including hardware failure, device configuration changes, or operational human error, among numerous other possibilities. Because a network involves so many vital interconnected elements, a single fault or mishap can cause the whole system to go down. When such outages occur, their effects can have disastrous repercussions on a company. As such, implementing resiliency and enhancing security throughout a network is essential. To further understand the importance of such preventative measures, read about some of the negative impacts of network outages.

Hurt productivity

High productivity is at the core of any successful company. When network outages occur, such productivity becomes nearly impossible. Employees often require certain network services to carry out their work, so outages may completely halt their workflow. If the responsibilities of employees are interlinked with those of others in your company, a harmful domino effect of lost productivity could occur in various sectors. The effects of lost productivity are especially detrimental in competitive industries in which time to market is central to the success of their products or services.

Financial loss

One of the most significant negative impacts of network outages is the financial loss they often incur. When your network goes down, a series of ripple effects often occur, each of which takes a toll on the bottom line of your company. For example, network outages can lead to lost productivity, which prevents employees from creating product—which in turn can lead to lost sales revenue. To make up for the loss of productivity, you may need to pay employees overtime to meet deadlines. In addition, you’ll likely have to pay hefty IT costs to get your system back up and running and to recover any lost data.

There’s no limit to the financial implications of network outages. As such, it’s imperative to take measures to effectively prevent an outage.

Hurt reputation

When network outages occur, your production will likely halt until the network gets back up and running. Depending on how long the outage lasts, you may not be able to provide products or services to customers as promised. By inconveniencing customers or business partners, your reputation could take a hit—especially if the people you upset voice their unhappiness on online review sites or social media. As a result of your damaged reputation, customers may flock to your competition instead, which could significantly hurt your business.