Axios Systems Webinar Blog.axiossystems.com @Axios_Systems Axios on LinkedIn [email protected]m George Spalding Executive Vice President Pink Elephant Joe Beighley Business Solutions Consultant Axios Systems “ITSM ROI – Delivering Business Value Fast” #ITSM #ROI Axios | 1
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George SpaldingExecutive Vice PresidentPink Elephant
Joe BeighleyBusiness Solutions Consultant Axios Systems
“ITSM ROI – Delivering Business Value Fast”
#ITSM #ROI
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Why you need to think about the ROI of ITSM?
Because…
Budget Cuts Outsourcing
and
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Reduced IT Ops Costs Business User SatisfactionReduce Business Outages Reduced Risk/Cost Avoidance
What does ROI mean in ITSM?
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Outages are BAD… and definitely avoidable costs
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People Cause Outages
• 80% of unplanned outages are due to ill-planned changes made by administrators (operations staff) or developers (Source: ITPI Visible Ops)
• 60% of availability and performance errors are the result of misconfigurations. The little changes made to the environment and system configuration parameters all the time. (Source: EMA)
• Through 2015, 80% of outages impacting mission-critical services will be caused by people and process issues, and more than 50% of those outages will be caused by change/configuration/release integration and hand-off issues (Source: Gartner)
• A USA Today survey of 200 data center managers found that over 80% of these managers reported that their downtime costs exceeded $50,000 per hour. For over 25%, downtime cost exceeded $500,000 per hour
• 1 out of 10 companies said they need greater than 99.999% availability (Information and Intelligence Corp)
• $46 Million in employee cost per year lost in downtime for Fortune 500 companies (Dunn & Bradstreet)
• Downtime costs $42,000 per hour (Gartner)
• Data Center downtime costs $5600 per minute (Ponemon Institute)
Throwing money down the can
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Outages Kill Productivity
• Downtime can reach 87 hours per year cumulatively (Source: Gartner)
• Average Outage Period is 200 minutes for full restoration (Source: ITPI)
Frustration!
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Outages Impact Revenue
• $26.5 Billion in lost revenue per year (Source: Information Week)
• On average businesses lose between $84,000 and $108,000 (USD) for every hour of IT system downtime
• Disruption in the supply chain may expose the business to damages and can impact shareholder value
• Not to mention the impact on Reputation, Brand and Customer Loyalty
Outages drain revenue
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Outages Impact Brand Loyalty
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ROI of ITSM
• How many minutes @ $5600/minute will it take to pay for your ITSM program?