Spectrum Internet Outage And Why Your Business Needs Backup Internet

Spectrum Internet Outage And Why Your Business Needs Backup Internet

On July 9, 2024, businesses across Texas experienced an unexpected halt in operations. The culprit? A Spectrum internet outage caused by Hurricane Beryl. Spectrum, a giant in the telecommunications industry, faced a significant service disruption to essential services, including 911 calls. This outage highlighted the critical need for businesses to have backup internet solutions. The disruption not only affected productivity but also posed significant risks to operations and safety.

 

The True Cost of Business Downtime from Internet Outage

It’s frustrating when the internet is down, because so is productivity. The TRUE cost of network downtime extends far beyond immediate financial losses. It includes missed meetings, unfulfilled orders, delayed product deliveries, and potential legal repercussions. Here’s a checklist to understand the full spectrum of downtime costs:

• Missed deadlines and contract penalties
• Lost business opportunities and sales
• Decreased employee productivity
• Customer dissatisfaction and damaged reputation
• Fees and fines from regulatory bodies
• Long-term revenue loss

Financial Impact of Downtime

• Lost Revenue: A 2016 Ponemon Institute study found that the average cost of an unplanned outage is $9,000 per minute.
• Missed Opportunities: Downtime during critical business hours can result in missed sales opportunities, costing businesses thousands of dollars in potential revenue.
• Operational Costs: Additional costs, such as overtime pay for employees working to resolve the issue, can quickly add up, further straining the budget.

Productivity Loss Due to Internet Outages

• Employee Downtime: If your business has 50 employees with an average hourly wage of $30, one hour of downtime can result in $1,500 in lost productivity.
• Project Delays: Delayed projects due to connectivity issues can impact future revenue streams and client satisfaction, potentially costing hundreds of thousands of dollars in long-term losses.
• Workflow Disruptions: Repeated interruptions can lead to inefficiencies and decreased employee morale, further affecting overall productivity.

Customer Dissatisfaction and Brand Reputation

• Loss of Customers: A survey by American Express found that U.S. consumers are willing to spend 17% more to do business with companies that deliver excellent service. Repeated outages can drive customers to competitors, resulting in significant revenue loss.
• Brand Damage: Gartner reports that businesses can lose up to $5,600 per minute in revenue due to IT downtime, and the long-term impact on brand reputation can be even more costly, requiring extensive marketing and PR efforts to rebuild trust.
• Service Expectations: Ensuring a backup internet solution helps maintain customer trust and protects your brand’s image, mitigating the risk of revenue loss and reputation damage.

Without a Business Continuity and backup and recovery plan, these issues can escalate. They can lead to extended downtime and significant financial strain.

 

The Importance of Backup Internet for Business

Businesses must invest in redundant internet solutions to skate the risks associated with internet outages. Redundant or ‘backup’ internet makes sure operations continue to run smoothly, even when the primary connection fails. This is where business continuity planning becomes crucial. A well-crafted business continuity plan includes:

1. Multiple internet service providers (ISPs) to ensure continuous connectivity
2. Automatic failover systems to switch to backup connections seamlessly
3. Regular testing and updating of the redundancy plan

Redundant internet isn’t just a luxury; it’s a necessity for any business aiming for resilience and uninterrupted service. If you cannot afford to be down, backup internet is a no-brainer.

 

Three Business Continuity Challenges You May Face

As a business owner or senior IT leader, you face several critical challenges when it comes to ensuring business continuity.

Lack of Awareness: You might be underestimating how often internet outages can happen and how severely they can impact your operations. Without recognizing the necessity of a robust business continuity plan, you risk significant downtime.

Resource Constraints: As an IT decision maker in a small to mid-sized business, you might find it challenging to allocate sufficient resources for comprehensive continuity solutions. This can leave your business exposed during outages.

Inadequate Expertise: Implementing an effective continuity plan isn’t straightforward. It requires specialized knowledge that your in-house IT team might not have. This gap can hinder your ability to ensure uninterrupted operations.

These challenges can be overcome by consulting a Virtual Chief Security Officer (vCSO). A vCSO can guide you in creating a tailored business continuity plan, including setting up redundant internet with the best providers available.

 

Backup Internet for Business FAQs

Isn’t redundant internet expensive?

Think of redundant internet as an investment in your business’s future. The financial losses from downtime far outweigh the relatively lower cost of redundancy.

Our IT team can handle it, right?

Your IT team is undoubtedly skilled, but a vCSO brings specialized expertise in continuity planning, ensuring your solutions are both comprehensive and effective.

We’ve never had a major outage before. Why now?

The recent Spectrum outage demonstrates that no business is immune. Preparing now can prevent significant costs and headaches in the future.

Not having the right consultant can lead to several pitfalls, such as inadequate redundancy setups that fail during critical times, overlooking essential aspects of continuity planning, and increased costs from inefficient solutions. Choosing the right consultant involves seeking out expertise, a proven track record, and a clear understanding of your business needs.

 

Trustworthy Virtual CSO Services by 7tech

7tech’s Virtual CSO (vCSO) Services offer expert guidance to address your business continuity challenges. Our vCSO helps you develop robust continuity plans, ensuring reliable and redundant internet setups. Optimize your network security and compliance with our tailored solutions.

The benefits of having a vCSO are transformative, enabling smooth operations with minimal disruptions. Always be prepared for unexpected challenges and handle any internet outage with ease. Our vCSO brings peace of mind, allowing your business to thrive without interruption.

What we have learned from the Spectrum internet outage, is that with a reliable, redundant internet setup, you can keep your business running smoothly. Don’t wait for the next outage—call 7tech today to ensure your business avoids downtime. Contact us at (844) 701-6777 to get started with a Free 15-Minute Discovery Call and secure your business’s future now!