[2-minute reading time…]
Are you buried in millions of events from your monitoring tools? Tired of swivel chair management and emails? Spending long hours figuring out what’s wrong when an application goes down?
That’s why you need IT event management. With event management, you consolidate all of your monitoring data into one place, rather than having multiple people staring at multiple screens. And, IT event management also intelligently filters, correlates and analyzes this monitoring data, so you don’t waste days trying to find the root cause of business service issues. A top of the class IT event management system can even predict outages before they happen.
But, you know that. Here’s the real question. How do you convince your CIO that IT event management is a top priority – not just for you, but for your business?
Here are three reasons why your CIO should care about IT event management.
Reason #1 – The Cost of Downtime
If one of your critical applications goes down, how much does it cost your business? Some industry experts have pegged the number at $100,000 an hour — and that’s probably too low, particularly for major corporations. A 2014 IDC survey found that unplanned application downtime cost Fortune 1000 companies between $500,000 and $1 million an hour. And, since then, things haven’t got better. In a 2017 ITIC study, 33% of enterprises said that unplanned application downtime costs between $1 million and $5 million every hour.
That’s staggering. Let’s do the math. According to IHS Markit, the average North American enterprise suffers 5 application outages and 27 hours of total downtime per month. Even at $100,000 an hour, that’s $2.7 million a month — or $32 million a year. At $1 million an hour, the figure skyrockets to $320 million. That’s just for lost revenues and productivity. It doesn’t take into account other key factors – such as damage to your company’s reputation.
Now, let’s assume conservatively that IT event management prevents 20% of outages and reduces MTTR by 20%. That monthly downtime now drops to 17 hours. At $100,000 an hour, you save your business $12 million a year, and this goes up to $120 million at $1 million an hour. Those are eye-watering numbers that your CIO should care about.
Reason #2 – Driving Business Innovation
For CIOs, aligning IT with the business is a top priority. This is about growing and transforming the business, using IT to respond to business needs and drive business innovation. This type of digitalization is top of the CIO agenda, and delivers significant business benefits. A 2017 Bain and Company survey found that digital leaders grew annual revenues at 14% – twice the rate of digital laggards. That’s an enormous business impact.
However, the same report also says that, “A great many executives are skeptical that they can translate the buzz around digital into meaningful improvements in performance.” In other words, your CIO needs to win the confidence of the business to succeed. And, frequent and prolonged service outages destroy confidence and trust – creating a direct threat to your CIO’s agenda. In fact, that’s the driving force behind the rise of the Chief Digital Officer (CDO), with CDOs mandated to drive innovation while CIOs are relegated to keeping the lights on. Francois Lancon, Oracle’s SVP, Asia Pacific, sums up the situation by saying, “Either CIOs become the head of the digital transformation, or the Chief Digital Officer is going to take over IT and they will be history.”
Event management builds that confidence. And, it’s also a direct enabler for innovation. The IoT is a prime example. As machines become connected and intelligent, they create major new business opportunities. And, as those machines become mission-critical, availability becomes a top priority. With billions of devices out there, hand-crafted monitoring just isn’t going to scale. Automated event management is one of the key technologies that makes the IoT possible.
Reason #3 – The IT Talent Shortage
Do we really have a tech talent shortage? Recently, there’s been a lot of debate. However, your CIO knows the truth. Scarce IT skills are the number one barrier to achieving CIO objectives. In a 2017 Gartner study, CIOs ranked lack of skills higher than any other barrier – including funding, technology, IT/business alignment, and organizational culture. And, when CIOs try to push their organization forward, the problem gets worse. Among top-performing CEOs, 27% say lack of skills is their main barrier, while only 21% of underperforming CIOs say the same.
What has this got to do with event management? Keeping the lights on is a huge drain on IT skills – and that includes ensuring application and business service availability. IT organizations typically spend 70% or more of their budget running their existing business, rather than growing or transforming it. With IT skills at a premium, that’s a heavy price to pay. Even when resources are dedicated to innovation, they are often pulled in when a crisis strikes. For instance, 39% of DevOps staff say that they spend two weeks or more every year on unplanned interruptions – such as service outages.
Think about your own IT organization. How many people do you have monitoring your infrastructure and applications? And, how many experts get pulled in when there is a service outage or performance issue? With event management, you free up scarce IT talent for innovation and dramatically reduce business disruption.
Believe me, your CIO will thank you.
If you are taking charge of your company’s IT Event Management initiative, and you’d like to see how Evanios can reduce the cost of downtime, drive business innovation and alleviate a shortage of IT talent, request a demo. You can also download our free Enterprise IT Event Management Playbook, a template that will help you define your business case, identify key stakeholders, and map your technical requirements.