DowntimeStarHub Business Site
StarHub Business Site
What internet downtime
is costing your SME
In 2013, a lapse in cable maintenance sparked a fire in Bukit Panjang exchange. Telecommunication operations nationwide came to a halt, and close to 270,000 subscribers experienced service disruption, which was only fully restored 8 days later. In the meantime, banking services like ATM cash withdrawals were affected, AXS kiosks could not process payments and several polyclinics were unable to access their patient records.
Although the occasional period of internet downtime might not seem like as much of a pressing issue to smaller businesses, here are a few ways it could cause your business considerable damage.
Loss of productivity
If your data is stored in a cloud solution, or if your mission-critical applications rely on internet connection, your business loses majority of its operation capacity until online access is restored. A drop in internet connectivity culminates in interrupted operations. The resulting loss in productivity could take form in a serious decline in consumers. See how businesses which use cloud-based POS systems are affected by downtime:
Important data can also be lost during the outages, no matter how short they might be. For example, files being transferred or uploaded online are compromised by poor connectivity, and recovering the lost data eats into your time and resources.
Employee productivity also sees a serious drop. A survey conducted among SME employees last year found that during internet downtime, only 30% continue to do work-related activities1.
“70% of employees do anything from taking extended coffee breaks to searching for other jobs when office internet is down.”
Decrease in service production
With fewer channels for communication between you and your customers, you are most likely unable to deliver your product or service on time. Businesses cannot offer prompt responses to customer queries or delivery orders, decreasing faith in the brand. If you’re in a consumer-facing or commerce business, a heavy dent in brand reliability is especially detrimental to your business’s success.
Furthermore, as most communications are conducted via online mediums like email, a disruption in the connection means your business is ultimately at a standstill until the problem is fixed.
As any business owner would know, a dip in productivity and service production can result in tangible repercussions in the loss of revenue:
“The average SME loses anywhere between $20,000 and $100,000 from just one hour of internet downtime2.”
The massive damage comes from paying unproductive employees, the cost to restore IT infrastructure and a lack of communication channels critical for day-to-day operations.
Other possible downsides, depending on your type of business, includes compliance violations and loss in stock value. For a closer estimate of how much your business stands to lose from downtime, try this downtime calculator.
According to IDA investigations, the Bukit Panjang exchange disruption was caused by the assumption that the fibre cable paths were diversified when in actual fact, several connections were made through the same entry point. This proved to be incredibly risky: damage to the sole point of connection brought about failure in the multiple cable paths that relied on it.
While internet outage of this large a scale is unlikely for SMEs, the crux of the downtime problem remains the same—a lack of link diversity. This is easily prevented through load balancing. A good load balancer can cut internet downtime to virtually zero by automatically rerouting to a backup connection when one link fails.
For a robust connection that ensures uninterrupted business operations, try StarHub’s DualConnect Broadband. This connectivity solution comprises dynamic broadband connectivity and load balancer with an auto failover function, ensuring that you have a constant connection even when one link is down.