Tuesday, March 16, 2010

When a second lost can cost $2.5M in lost revenues!

Doing some research for a recent presentation I discovered an interesting whitepaper from Gomez, the web performance division of Compuware.

My talk was on eliminating performance starved applications, at least from a storage perspective with examples of how high performance storage such as the Atrato Velocity Series (Delivers 5333 IOPS/RU) can eliminate storage IO bottlenecks.

While the main thrust of my discussion focused on the storage challenges of the virtualized environment (subject of another blog) I found the challenges of customer facing WEB applications facinating and the financial penalties associated with relying on sub-par storage solutions, unable to deliver an aggressive IO performance, facinating. Here are some factoids I came across in the Gomez paper.

1. The average online shopper expects web pages to load in 2 seconds or less, down from 4 seconds in 2006
2. After a refresh delay of 3 seconds up to 40% of potential shoppers will abandon the site.
3. The Aberdeen Research group found that the industry average for availability was 97.8%. Not bad? Not good!! Consider what a 2% lack of availability really means. It means 8 lost days per year for a $100,000 a day ecommerce site which translates to a loss of $800,000 per year.
4. The Aberdeen group also discovered that a 1 second delay in page refresh meant a 7% reduction in conversions. Again for a $100,000 per day ecommerce site this translates to $2.5M in lost revenues per year.
5. Microsoft’s Bing found that a 2 second slowdown reduced customer satisfaction by 3.8% and a 4.3% loss in revenue per visitor.

Are these good enough reasons to look for a high performance solution that can deliver the high velocity data needed to speed up your customer facing WEB applications?

I suggest yes, but because a vendor can offer you SSD do not automatically think he is offering you a solution. Look at how this performance tier is being managed and beware that the solution is indeed problem solving and not problem inducing.

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