The cost of downtime

Hostmark said the main reasons for financial losses during Web site downtime were direct revenue loss, where customers buy elsewhere; loss of future revenues due to damaged reputation; inventory costs; and employee downtime, ie, the time spent by technical staff fixing the problem.

"These spiralling figures alone are a real wake-up call for British business, but they only tell part of the story," said Bruno d'Avanzo, chief executive of Hostmark.

"They do not include the costs of storing unsold goods or destroying perishables which cannot be sold in time. And there is a huge risk to the company share price if the system collapses."

daniel.thomas@rbi.co.uk