A life insurance policy for your industry reputation
For those working in the data center industry, it is inevitable that a crisis will arise at some point; whether it’s a downtime event, security breach, or something completely out of our control like a weather event. As we have seen from data center events over the last couple of years, a communications response during this tumultuous time can shape a company’s reputation in the industry for years to come. If the data center industry has learned anything from the COVID-19 pandemic, it is that all eyes are on the industry and the huge role that data centers play in our day-to-day lives from Zoom meetings, remote learning and takeout and delivery meals. With all eyes on the data center and finger pointing when something goes wrong, the industry would benefit from more widespread adoption of data center crisis management. In 2019 Milldam recognized this and launched a Data Center Crisis Communications Practice.
Lack of Communications Planning
While it’s a no brainer to have redundant power and network connectivity, many data center operators and vendors continue to lack comprehensive communications planning – especially when it comes to planning for crises. Having a crisis communications plan and being able to implement it is akin to an insurance policy for your organization’s reputation. Over the last several years, we have seen numerous critical infrastructure providers and others throughout the data center ecosystem demonstrate a lack of communications preparedness when a serious event takes place.
The Immeasurable Cost of No Communications Plan
The cost to the reputation of data center or vendor can be irreparable and haunt the organization for months and even years after the event is resolved. According to Data Center Knowledge, an hour of data center downtime on average costs a provider $260,000. While that’s a large number, it does not take into account the often-immeasurable costs to the company’s reputation and credibility within the industry. Over the last month, there have been a number of data center outages that have made it into the press including the Nashville explosion near an AT&T data center and NetGain Technologies taking some of its data centers offline following a ransomware attack. The Nashville story had even broader ramifications as it knocked out 911 emergency service. During a February 2019 data center outage at Wells Fargo numerous employees were going rogue – speaking to the press and posting on online forums. This confused the market and contributed to unflattering stories like this one in Data Center Dynamics.
Getting in front of a negative story while keeping the lines of communication open for all stakeholders and ensuring that employees are not communicating with the media or social media without permission can help lessen the blow to corporate reputation and standing in the market. The Wells Fargo example caused great confusion when different reports about the cause of the downtime issue spread throughout the press and online forums. In this era of digital proliferation, critical infrastructure providers need the tools to respond to negative news and take actionable steps to alleviate the concerns of all stakeholders, while maintaining a unified message following an event.
A Mission Critical Crisis Communications Plan is Important For:
- Colocation Providers – Colo operators need to get in front of the story ensuring continuity and to ease the comfort levels of customers and prospects your sales team has been cultivating. Additionally, implementing a proper crisis communication plan ensures that the correct messaging is communicated to external stakeholders, such as press and analysts.
- Telecom Providers – Providers are the conduit to public safety, necessitating immediate communications and a unified message. Additionally, with the proliferation of streaming services and Internet-enabled devices, these providers are ubiquitous in living rooms and communities around the world.
- Data Center Vendors – Many times data center vendors are linked to downtime events, tarnishing the company’s reputation in the market. In addition to product related blame, there is also the element of human error often attributed in a downtime event.
The way an organization communicates to stakeholders and press during and after a crisis can significantly impact the company’s reputation going forward. The need for comprehensive crisis planning for data center companies has become paramount as data centers continue to play a role in the day-to-day activities of the average person; whether it’s through a ride sharing app, air travel or e-commerce.
Get started on your organization’s data center crisis communications plan today!
Adam Waitkunas is the President of Milldam Public Relations
