Businesses face GBP £500k hourly cost from IT outages
The recent Microsoft 365 outage has highlighted the importance of preparedness for software disruptions, affecting thousands of users globally and drawing significant attention online.
The outage resulted in an unprecedented surge in online searches, with queries such as 'is there a problem with Outlook' increasing by 1545%. While Microsoft has addressed the outage for most users, the incident underscores the risks that businesses face when their digital systems encounter disruptions.
Laura Court-Jones of Bionic discussed the financial implications for businesses, noting that IT downtime can cost companies anywhere between GBP £4,000 and GBP £500,000 per hour, depending on their reliance on digital platforms. "While tech outages are often unavoidable, being prepared can help reduce disruption and keep your business running smoothly," she stated.
One of the key recommendations from Bionic is to ensure that all software is kept up to date. "Outdated software could be the reason you're unable to access your account," Court-Jones remarked. Keeping software updated can mitigate security vulnerabilities and prevent some of the disruptions experienced during outages.
Another measure suggested is enabling offline access for emails and files, where possible. "Some software systems allow you to access certain emails and files offline. Make sure this feature is enabled so you can continue working even if you lose internet connectivity or experience an outage," Court-Jones said.
Having a robust IT contingency plan is also advised. Court-Jones added, "Whether you're a business or an individual user, having a clear plan in place can help you react quickly to future outages. This could include switching to alternative communication platforms like Slack or WhatsApp and ensuring employees know what to do if services go down."
The recent incident is a stark reminder of the potential disruptions technology outages can cause, demanding businesses and individual users alike to be prepared with strategies and systems to minimise impact.
Bionic specialises in business insurance for limited companies, sole traders, partnerships and more.
"Business insurance can protect your business against any accidental losses or claims made against it. None of us can see into the future, but having the right business insurance policies in place can help make sure you're at least covered if the worst should happen," the company says.
"Business insurance policies usually include a range of covers, such as employers' liability insurance, public liability insurance, and cover for your contents, business equipment and stock."
"These combined covers can protect against the financial risks of compensation claims or legal action taken against your business if it's deemed responsible for property damage, injury or lost or stolen items, unexpected closures, and more."
