IT outages cost an ASEAN firm up to US$3M per hour

- Advertisement -

High-impact outages cost companies about US$2 million per hour globally or about $33,333 for every minute systems remain down, according to New Relic.

For organisations across Singapore, Thailand, Malaysia and Indonesia, high-impact outages cost between $1-3 million per hour in lost revenue. the median annual cost of high-impact outages representing US$165.5 million.

New Relic partnered with Enterprise Technology Research (ETR) to survey 1,700 IT and engineering teams and leaders in 23 countries across the Americas, Asia-Pacific and Europe. 

Of the respondents, 65% were practitioners, 11% executives and 24% in management. The survey was conducted in April and May of this year by ETR.

The research found that over two-thirds of ASEAN respondents cite AI readiness as a benefit of observability, while 61% say it has enabled data integration. Collaboration and decision-making benefits (49%) were also listed as top benefits reflecting a deepening of cross-functional maturity. 

Observability investments are also paying off with 50% of executives and managers across the region stating that they receive a 3-5x ROI from their observability platforms.

Also, the top technology trend was AI monitoring with almost two-thirds (61%) stating that it is driving their organisation’s need for observability. 

This was followed by integrating business applications into workflows (35%), and adoption of IoT technologies (32%). Also, 83% currently deploy AI monitoring, followed by database monitoring (73%) and application performance monitoring (71%).

Further, 85% of respondents plan to integrate operations data, a sharp increase from 50% in 2024. This figure was 92% in Singapore. Production data was also being integrated at an increased rate with 70% of respondents in Indonesia indicating that observability has helped integrate previously disconnected systems. 

In addition, about half of respondents across ASEAN (49%) say observability improves cross-team collaboration around software stack decisions.

Organisations adopting AI at scale require a deeper level of system insight like using AI-strengthened observability platforms, in real time, to reveal how AI models interact with pipelines, APIs, and downstream applications. 

In line with the rapid adoption of AI across the region, observability is now seen as critical to AI readiness by ASEAN organisations, with 69% of respondents stating that observability helps them prepare for and manage AI application development, rising to 73% in Indonesia and 71% in Thailand.

“With the role of AI taking centre stage and outages proving to be exceptionally costly, the importance of a robust, intelligent observability strategy has never been more vital for Southeast Asian organisations,” said Rob Newell, SVP and general manager at New Relic in APAC. 

“While the broad adoption of key observability capabilities like AI monitoring is encouraging, it’s clear that a lack of strategy, data and tool sprawl, and tech complexity are continuing to present significant challenges,” said Newell. “Organisations that don’t embrace intelligent observability will find themselves at a severe and costly disadvantage.”