IT outages in Indian organisations cost over $62 million annually: Report

The median annual cost of information technology (IT) outages is $62.79 million in India, a new report has found. Close to half of the respondents in India said that critical business app outages cost over $500,000 per hour of downtime. 

The report was created by observability and IT monitoring services provider New Relic to understand the current state of observability by interviewing 1,700 technology professionals in 15 countries. Observability is the ability to measure an IT system’s performance based on the data it generates.

The New Relic report further stated that about 75% of the respondents from India said that observability solutions improve the time taken to resolve such outages. It is also found that Indian organisations are challenged with tool sprawl, which refers to using unnecessarily large numbers of IT tools for different use cases. In fact, India bests other surveyed countries by a large margin; over 70% of Indian organisations use over 10 tools for observability.

“Tool sprawl and data silos are largely impacting Indian organisations’ ability to reduce downtime and the costs attached to it,” said Peter Marelas, Chief Architect, APJ, New Relic. “The Observability Forecast reveals that 43% of businesses in India have siloed telemetry data, creating blindspots in monitoring and maintaining system health. It’s clear that full-stack observability can help resolve some of the most pressing challenges that are facing Indian organisations.”

None of the interviewed respondents in India use just a single platform for observability but 51% of them showcased interest in having a consolidated platform and said that having too many monitoring tools posed a challenge to achieving full-stack observability. Additionally, a third of Indian organisations (33%) plan on consolidating their tools next year to maximise the value of their observability spend. 

A July report by market research firm MarketsandMarkets showed that the observability tools and platforms market size is expected to grow from $2.4 billion in 2023 to $4.1 billion by 2028 at a CAGR of 11.7%. Some of the key drivers for this growth are advancements in cloud technology, open source software, artificial intelligence and machine learning, and real-time analytics.