Application performance problems cost firms £2m a year

Application performance problems are costing large UK firms an average of more than £500,000 a year as a result of reduced productivity, lost sales and diminished customer confidence. 

Research commissioned by application traffic management firm Ipanema Technologies of 100 firms employing more than 1,000 people reveals that 10% of firms reported losses of up to £2m from application performance problems.

The figures showed that particularly high losses were found in the financial services sector, where 40% of respondents reported annual losses of £1m or more from application problems.

Performance issues encountered included slow-running applications, downtime, packet-loss and jitter, with 44% of respondents attributing these problems to network difficulties.

While 57% of firms admit to resorting to bandwidth upgrades to improve matters, 75% complained that bandwidth upgrades rarely solved the application performance problems they were experiencing. 

The survey found that continuing problems have led to 93% of respondents considering solutions that offer greater visibility and control of traffic over the WAN. 

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