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NETSCOUT Research Finds 97% of Enterprises Experienced Major UCaaS-Related Outages in 2023

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NETSCOUT SYSTEMS, INC. released research on challenges faced by IT teams in monitoring UCaaS tools, with 97% of enterprises experiencing major incidents in 2023, leading to significant financial losses. AI features are crucial for decision-makers, and UCaaS platforms play a key role in SaaS adoption.
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The findings of NETSCOUT's research on UCaaS outages underscore the criticality of robust IT infrastructure for maintaining business continuity. With the majority of enterprises reporting significant financial losses due to UCaaS incidents, this highlights the direct correlation between IT system reliability and a company's bottom line. The rise in remote work and the subsequent increase in SaaS tool adoption have undoubtedly contributed to the complexity of IT environments. This complexity, coupled with the reported 76% increase in SaaS tool usage, indicates a growing dependency on digital infrastructure that is vulnerable to costly disruptions.

From an IT Systems perspective, the emphasis on AI features for UCaaS platforms reflects a trend towards automation in IT management. The ability to prioritize messages by urgency or generate text summaries through AI can streamline operations and potentially reduce resolution times. However, it's important to note that while AI can enhance efficiency, it cannot replace the need for a solid IT foundation and proactive monitoring solutions like those offered by NETSCOUT. This research may prompt IT departments to reassess their current infrastructure and consider investments in more sophisticated monitoring tools to mitigate the risk of future outages.

The report by NETSCOUT reveals a significant pain point for enterprises with substantial revenue losses attributed to UCaaS outages. For businesses, particularly those with revenues exceeding $10 billion, the estimated financial impact ranges from $100,000 to over a million dollars, which can be material when considering quarterly and annual financial performance. This data is a stark reminder of the tangible costs associated with IT disruptions.

Investors and financial analysts should closely monitor how companies are addressing these IT challenges, as their ability to manage and prevent outages could be a key indicator of operational efficiency and resilience. The market may react to such findings by valuing companies with robust IT infrastructures more favorably, potentially impacting stock prices. Additionally, companies like NETSCOUT that provide solutions to these problems could see an increased demand for their services, which may reflect positively on their financial outlook.

The insights provided by NETSCOUT's research into UCaaS outages present a compelling case for the integration of risk management strategies within IT operations. The data suggests that enterprises are facing a significant threat to their operational stability, which in turn poses a risk to their financial health. The high incidence of outages reported by respondents indicates that UCaaS systems are a critical point of failure that could lead to reputational damage, customer dissatisfaction and loss of business.

It is imperative for businesses to adopt a comprehensive risk management approach that includes regular assessments of IT infrastructure, investment in resilient technologies and contingency planning for outages. The findings also point to the necessity of independent monitoring solutions that can provide visibility across remote sites and help mitigate the impact of outages. By proactively managing these risks, businesses can safeguard against the high costs associated with system downtime and ensure the continuity of their operations.

Outages Can Cost up to $1,000,000 or More in Lost Sales and Productivity

WESTFORD, Mass.--(BUSINESS WIRE)-- NETSCOUT SYSTEMS, INC. (NASDAQ: NTCT), a leading provider of performance management, cybersecurity, and DDoS protection solutions, today released research that analyzes the challenges IT teams face in monitoring and troubleshooting Unified Communications as a Service (UCaaS) tools as the need to support more Software as a Service (SaaS) applications grows.

One significant finding is that nearly all enterprises (97%) experienced at least one major UCaaS incident or outage in 2023, lasting at least a few hours and affecting broad functionality, with 64% of respondents estimating associated losses of at least $10,000 in sales and productivity. Forty-seven percent of enterprises with annual revenue over $10 billion estimated losses of $100,000 to one million dollars or more.

Additional findings include:

  • Enterprises with remote sites like branch offices, warehouses, factories, satellite campuses, healthcare clinics, and retail locations are more heavily impacted by increased complexity, with more than 75% of help desk tickets requiring at least a few hours to resolve.
  • AI features are important to IT decision-makers when selecting new UCaaS platforms, especially AI prioritization of messages by urgency, AI-editing for spelling/grammar, and AI-generated text summaries of voice messages/calls.
  • 51% of enterprises experienced at least four major UCaaS-related outages in the past year.
  • UCaaS platforms were responsible for most help desk tickets among 37% of those surveyed, with 55% of respondents stating that it typically takes their IT organization a few hours to resolve issues.
  • UCaaS platforms represent a significant percentage of overall SaaS adoption, with most organizations (59%) now supporting at least six or more UCaaS tools and applications and 10 or more SaaS tools and applications.
  • 76% of companies increased the number of SaaS tools and applications they used over the past year.

“When essential platforms experience widespread and persistent outages, the disruption interrupts critical business operations and can lead to substantial financial losses,” said Michael Szabados, chief operating officer, NETSCOUT. “As IT teams continue to face visibility issues, especially in large enterprises with multiple remote sites where in-person troubleshooting isn’t practical, they need independent monitoring solutions that simplify operations, quickly identify the root causes of performance problems, and limit the impact of expensive outages to keep employees online and the business running smoothly.”

Using NETSCOUT nGenius Enterprise Performance Management, IT organizations can standardize operations around a single platform, foster greater productivity, address remote site blind spots, and minimize time to resolution as issues arise.

Between January and February 2024, the survey was conducted among 300 IT decision-makers in the United States and Canada. Visit our website to download a PDF of the research findings or to learn more about our UCaaS solutions.

About NETSCOUT

NETSCOUT SYSTEMS, INC. (NASDAQ: NTCT) protects the connected world from cyberattacks and performance and availability disruptions through its unique visibility platform and solutions powered by its pioneering deep packet inspection at scale technology. NETSCOUT serves the world’s largest enterprises, service providers, and public sector organizations. Learn more at www.netscout.com or follow @NETSCOUT on LinkedIn, X, or Facebook.

©2024 NETSCOUT SYSTEMS, INC. All rights reserved. NETSCOUT, the NETSCOUT logo, Guardians of the Connected World, Visibility Without Borders, Adaptive Service Intelligence, Arbor, ATLAS, Cyber Threat Horizon, InfiniStream, nGenius, nGeniusONE, Omnis, and TrueCall are registered trademarks or trademarks of NETSCOUT SYSTEMS, INC., and/or its subsidiaries and/or affiliates in the USA and/or other countries. Third-party trademarks mentioned are the property of their respective owners.

Chris Lucas

NETSCOUT Systems, Inc.

+1 978-614-4124

chris.lucas@netscout.com

Chris Shattuck

Finn Partners for NETSCOUT

+1 404 502 6755

NETSCOUT-US@FinnPartners.com

Source: NETSCOUT SYSTEMS, INC

FAQ

What did NETSCOUT SYSTEMS, INC. research analyze?

The research analyzed the challenges IT teams face in monitoring and troubleshooting Unified Communications as a Service (UCaaS) tools.

How many enterprises experienced major UCaaS incidents or outages in 2023?

97% of enterprises experienced at least one major UCaaS incident or outage in 2023.

What percentage of enterprises estimated losses of at least $10,000 in sales and productivity?

64% of enterprises estimated losses of at least $10,000 in sales and productivity.

What are some important AI features for IT decision-makers in selecting UCaaS platforms?

AI prioritization of messages by urgency, AI-editing for spelling/grammar, and AI-generated text summaries of voice messages/calls are crucial.

How many enterprises experienced at least four major UCaaS-related outages in the past year?

51% of enterprises experienced at least four major UCaaS-related outages in the past year.

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