website malfunctions can Lead to Financial Losses for Companies amounting to thousands a month
Businesses Suffer Significant Losses Due to Hosting Issues
A recent survey by Liquid Web reveals that businesses, on average, lose five hours per month to hosting downtime and spend around $418 per month fixing hosting-related issues. The survey polled 500 business owners, developers, and IT decision-makers.
The survey found that some sectors face higher costs due to hosting issues. Education businesses reported the highest average loss at $663 per month, followed by healthcare at $478, finance at $458, IT at $447, and marketing and advertising at $441.
Security threats pose a significant risk to businesses, with nearly half experiencing security threats, and about 32% suffering data breaches due to poor hosting security. Around half of businesses also reported that their hosting led to vulnerabilities or hacking attempts.
When it comes to switching hosting providers, high costs, slow website performance, and frequent downtime are the top reasons businesses would make a change. However, nearly seven-in-ten businesses have delayed changing providers due to fears around downtime, migration costs, and technical complexity.
The survey also found that businesses are planning to invest in various areas in 2025. Small businesses are focusing on strengthening security (59%), implementing AI tools (54%), and improving website or app performance (51%). Larger companies are prioritizing stronger security (62%), AI (59%), and more scalable infrastructure (45%).
Ryan MacDonald, chief technology officer at Liquid Web, emphasizes the importance of treating hosting as a critical investment in security, performance, and growth. He states, "In 2025, businesses should prioritize hosting as a key component in their overall strategy for security, performance, and growth."
In conclusion, the average monthly cost impact for businesses due to downtime, security issues, and poor hosting infrastructure is approximately $418, with substantial downtime (about five hours monthly) and significant risks from security threats. Businesses should consider hosting as a critical investment in their growth and development.
[1] Source: Liquid Web survey of 500 business owners, developers, and IT decision-makers.
- Businesses in the finance sector are spending an average of $458 per month resolving hosting-related issues, highlighting the significant costs associated with poor infrastructure in this sector.
- In 2025, businesses are planning to focus on various investments, including strengthening cybersecurity (59% and 62% for small and larger companies, respectively), implementing AI tools (54% and 59%), and enhancing infrastructure to make it more scalable (45%) – all in an effort to improve security, performance, and growth, and minimize cybersecurity risks.
