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.


Joshua Smith said...

For businesses it needs to stay updated by using actual software applications. Some solutions could be developed by outsourced company that provides mobile applications development for business companies.

Joshua Smith said...
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Joshua Smith said...
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