Johannesburg, 11 May 2012
Today, more and more companies are outsourcing their online operations such as Web sites, e-commerce, e-mail and domain name system (DNS) to focus on core business activities and lower costs. As a result, hosting providers are experiencing double-digit growth as they meet this mounting market demand. Service-level commitments and customer expectations are also on the rise due to the business-critical nature of many hosting services. In particular, the highest-value customers have the lowest tolerance for outages.
A continuing and growing threat to service availability is distributed denial of service (DDOS) attacks. In fact, most hosting providers experience DDOS attacks on a regular basis. An effective DDOS defence system can safeguard business operations against DDOS-related outages, but determining the return on investment (ROI) of purchasing and deploying such a system can be challenging. One needs to quantify both the risks of DDOS attacks and their financial consequences. This paper provides a simple, step-by-step approach for evaluating whether an investment in a DDOS defence system is financially justified.
Using industry averages for attack frequency and outage costs, the results show that investing in an effective DDOS protection solution, such as the Arbor Peakflow SP Threat Management System (“TMS”), provides a strong positive ROI, reduces customer churn and lowers financial risk. Arbor Networks also provides an ROI calculator that enables hosting providers to apply their own data to compute ROI and determine the results of different what-if scenarios.
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