High Cost of Downtime Part 1

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With the Costs of Downtime so High, Failover is a Wise Investment

A tree falls in high winds. A snowstorm sweeps into town. A backhoe digs a little too far to the left. Lightning strikes a telephone pole. Floodwaters inundate city streets. All of these acts of nature (or of humans) threaten business continuity. When a business loses its Internet connections, it loses revenue — and a whole lot more.

Gartner estimates that every hour of Internet downtime typically costs enterprise organizations in the neighborhood of $300,000. In addition to an immediate hit on revenue from Point-of-Sale system failure, other costs can include:

·      Non-PCI compliance, which can leave businesses open to security risks and fraud.

·      Inoperable inventory management systems, which can bring operations to a halt.

·      Inability to sync cloud-based applications for communications, security and data storage.

·      The need for IT truck rolls, and dependence on cable company repair schedules.

·      Damage to brand reputation and loyalty, which can lead to further loss of revenue.

Don’t let your organization be a statistic. Having a business continuity plan in place is imperative for todays distributed enterprise. 

American Apparel plays it Safe with Wireless 4G Failover

Based in Los Angeles and with more than 280 stores located in the United States, Europe, China, Japan, Korea, Brazil, Mexico, and Australia. American Apparel has taken steps to make sure that none of its stores’ Internet connections goes down—ever. 

Each American Apparel location needs PCI-compliant Internet access to process credit card transactions, conduct time management tasks, provide email communications, and manage inventory control.

Osvaldo Hurtado, American Apparel’s Director of Store IT Infrastructure, says the company has installed Cradlepoint Routers in its stores to deliver 99.99% uptime for its store networks using wireless as a failover solution. Primary Internet service providers offer only a 99.5% availability standard, which equals about 4 hours of downtime a month—or as much as $1,200,000 in lost revenue. With Cradlepoint’s “four-nines” 4G LTE availability, Hurtado can measure Internet downtime by seconds or minutes, not by hours.

“The Cradlepoint device is carrier agnostic and works with just about any carrier network available, giving our stores a wireless failover solution if they go offline. If the Internet connection is down, our stores aren’t able to perform many of their daily operations, putting them in a very frustrating position. With the Cradlepoint, I can get the store up and operational within minutes,” said Osvaldo Hurtado, American Apparel’s Director of Store IT Infrastructure.

By using Cradlepoint’s NetCloud Manager, Hurtado and his team can remotely manage all 280 of its routers over the network. NetCloud Manager enables American Apparel’s IT department to identify devices whether they are offline or online, configure and upgrade routers automatically, and configure individual routers or groups of routers—all from one unified dashboard. That’s failover and management for distributed enterprises made easy.

In Part 2 of our “High Costs of Downtime” series, we will take a look at all the failover options available to help distributed enterprises avoid costly Internet downtimes, and how to choose the option that’s right for you.