Press Release

Over 40% of businesses experience revenue losses from downtime

Thu 26 Oct 2023

More than half of businesses (56%) reported significant impacts on revenue due to technology downtime, according to a new survey by Hitachi Vantara.

The survey revealed ongoing challenges related to security, inflexible systems, isolated data, a skilled labor shortage, and the need for infrastructure agility.

These challenges are heightened by rising data complexities, rigid technology environments, and increasing costs due to aging or legacy infrastructure.

The ‘Embracing ITaaS For Adaptability and Growth’ study surveyed 213 IT leaders across North America and Europe to assess the IT as a Service (ITaaS) market with a focus on subscription- and consumption-based models.

The survey exposed major legacy infrastructure challenges causing IT decision-makers to report negative impacts on their businesses.

Half of organisations faced a high total cost of ownership (TCO) or technical debt associated with critical applications. Meanwhile, 45% of businesses have difficulties navigating complex cloud landscapes.

“In today’s digital age, IT is not just a department; it is a driving force that propels progress. It enables enterprises to innovate, collaborate, and flourish amid ever-evolving technology,” said Gary Lyng, Vice President for Product and Solutions at Hitachi Vantara.

The survey also found that 55% of enterprises are struggling to derive meaningful insights from their data, highlighting an industry-wide need to deliver technology faster, more reliably and in more places.

“Complexity is hindering innovation, which emphasises the need for trusted specialists to simplify setup for seamless access to data and applications,” added Lyng.

The study also shed light on the recent growth of ITaaS, revealing that 42% of leaders are expanding their adoption.

To conserve capital budgets, IT leaders use ITaaS to shift their IT financing model to a set of operating costs, which are easier to predict and budget for. Decision-makers cite a 20% reduction in TCO on average.

ITaaS is expected to rise not only for individual solutions, but also across the entirety of various infrastructure categories. For example, 56% of respondents are using ITaaS for all of their primary infrastructure today, and this value is expected to go up to 86% in three years.

Infrastructure leaders also noted the importance of choosing the right partner. Beyond pricing, decision-makers carefully consider elements such as the partner’s proficiency in supporting hybrid and multicloud strategies, providing expertise, and enabling faster innovation through seamless technology service integration.

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