Research Sources

Cost of Downtime Benchmarks

What Gartner, ITIC, Uptime Institute, and Ponemon Actually Say

Updated June 2026 · All figures cited with source and publication date

ITIC 2024

Information Technology Intelligence Consulting

2024

$300K+/hr

  • -91% of mid-size enterprises: >$300K/hr
  • -41% of large enterprises: $1M-$5M/hr
  • -Finance sector avg: $9.3M/hr peak
  • -Healthcare: $7M+/hr with regulatory costs

Most current and comprehensive survey for enterprise-scale costs. Considered the most credible current source by SRE community.

Ponemon 2016

Ponemon Institute / Emerson Network Power - Cost of Data Center Outages

2016

$8,851/min

  • -Avg outage cost: $740,357 (up 38% from 2010)
  • -Avg cost per minute: $8,851 (about $531K/hr)
  • -Trend: $505,502 (2010), $690,204 (2013), $740,357 (2016)
  • -Latest edition of this study - not refreshed since 2016

Focuses on physical data center outages specifically - includes equipment damage and recovery labor that ITIC does not. Figures are facility-wide averages, not segmented by business size.

Uptime Institute 2026

Uptime Institute Annual Outage Analysis

2026

1 in 5 > $1M

  • -57% of major outages cost more than $100K
  • -1 in 5 cost more than $1M (2nd year running)
  • -Frequency down 5th straight year (pace slowing)
  • -Power #1 cause; fiber/connectivity outages rising

Best for trend analysis and cause breakdown. Published annually. 2026 edition (May 2026) shows fewer incidents but rising per-incident cost.

Gartner 2014

Gartner Research - Network Infrastructure Survey

2014

$5,600/min

  • -$5,600/minute = $336,000/hour
  • -Survey-based methodology
  • -General enterprise, not sector-specific
  • -12 years old - pre-cloud, pre-SaaS dominance

The most-cited figure in vendor content marketing. Widely considered to understate current costs but still useful as a conservative floor for budget conversations.

All Benchmark Figures

FigureContextSourceYear
$9.3M/hrFinance sector, large banks, peak loadITIC2024
$7M/hrHealthcare, incl. HIPAA riskProtenus2024
$5.4B totalCrowdStrike Fortune 500 aggregateParametrix2024
$5M+/hrTop-tier large enterprisesITIC2024
$23,750/minLarge enterprise (500+ staff) averageITIC2024
$8,851/minAvg data center outage, per minutePonemon / Emerson2016
$740,357 avgAverage data center outage total costPonemon / Emerson2016
$5,600/minGeneral enterprise network outage avgGartner2014
1 in 5 > $1MMost recent major outage costUptime Institute2026
$300K+/hrMinimum for 91% of mid-size enterprisesITIC2024
57% > $100KShare of major outages above $100KUptime Institute2026

Why the Numbers Vary

Methodology differences: ITIC surveys IT professionals on self-reported losses; Ponemon surveys data center operators with a focus on infrastructure; Gartner modeled from historical incident reports. Different populations, different cost inclusions.

What gets counted: Some studies include lost revenue only; others add productivity, recovery, and reputation. The Ponemon figure includes equipment damage and recovery labor that ITIC does not. The Gartner figure excludes reputation cost entirely.

Temporal drift: A 2014 survey of enterprise downtime costs will capture a pre-cloud, pre-SaaS-dependency world. Today, an enterprise with 200 SaaS tools in its stack has a much higher productivity loss floor than in 2014 - every tool that depends on SSO or cloud identity goes down together.

Sample bias: ITIC surveys focus on enterprises willing to self-report losses. SMB costs are harder to capture. Ponemon's data center focus means cloud-native businesses are underrepresented.

How to Cite These Figures

CFO budget meeting (conservative)

""Per Gartner research, average enterprise downtime costs $5,600 per minute ($336K/hr). Our company's figure is higher/lower based on [calculation] - see attached analysis.""

SRE investment justification (current)

""ITIC 2024 survey: 91% of mid-size enterprises report >$300K/hr in downtime costs. Our calculated exposure is $X/hr based on [formula]. One prevented 4-hour outage justifies [investment].""

Board-level resilience case (sector-specific)

""For our industry ([finance/healthcare/retail]), sector-specific benchmarks show [figure]/hr. Recent incidents like CrowdStrike (Parametrix 2024: $5.4B Fortune 500 aggregate) demonstrate the risk is not hypothetical.""

Frequently Asked

What is the Gartner cost of downtime figure?
Gartner's most commonly cited figure is $5,600 per minute, published in 2014. This equates to $336,000 per hour. The research was survey-based and covered general enterprise IT. It is 12 years old and widely considered to understate current costs, particularly for cloud-dependent and SaaS-heavy businesses.
What does ITIC say about the cost of downtime in 2024?
ITIC's 2024 Hourly Cost of Downtime Survey found that 91% of mid-size enterprises report losses exceeding $300,000 per hour. 41% of large enterprises report $1M to $5M per hour. The finance sector peaks at $9.3M per hour. These figures are significantly higher than pre-2020 data, driven by cloud dependency and increased regulatory exposure.
What does Uptime Institute say about downtime cost trends?
Uptime Institute's 2026 Annual Outage Analysis (May 2026) found outage frequency has declined for the fifth consecutive year, while cost per incident keeps rising: 57% of operators said their most recent major outage cost over $100K, and one in five said it cost over $1M. The paradox: better engineering means fewer outages, but interconnected cloud and grid dependencies make each one more expensive. Power is still the #1 cause, with fiber and connectivity failures rising.
How do you cite downtime cost figures in a business case?
Use the most recent applicable source for your company size. For mid-size enterprises, cite ITIC 2024 and note '91% of mid-size enterprises report >$300K/hr'. For large enterprises, use the ITIC $1M-$5M/hr range. Always note the publication year. For regulated industries, add the regulatory penalty layer separately.

Updated 2026-04-27