Interesting People mailing list archives

IP: RE: A report on the WHite House meeting by Gene Stafford


From: Dave Farber <farber () cis upenn edu>
Date: Mon, 21 Feb 2000 07:52:22 -0500



From: "David Newman" <dnewman () networktest com>
To: <farber () cis upenn edu>
Cc: <spaf () cerias purdue edu>


One estimate in one news source speculated
that over
a billion dollars had been lost in lost revenue, downtime, and
preventative measures.  I'm skeptical of that, but it certainly is the
case that a significant loss occurred.

I'm very skeptical of that figure too. One possible way to gauge the costs
is to take the most recently quarterly revenue of the attacked companies;
divide by the number of hours in a quarter; and multiply by the number of
hours they were off the air.

Not claiming this is anything but a rough estimation (or even a valid way to
figure it), but if we do use this method for six big victims -- Amazon,
Buy.com, E*trade, eBay, Yahoo!, and ZDnet -- the total outage resulted less
than $1 million, with an M, in lost revenue. And some of these folks (like
ZDnet) have non-Internet revenue, so the actual loss may be lower.

It may be possible to tilt the scales the other way by noting that online
brokerage Datek was hit. Their revenue figures are private, but the numbers
might be larger than any of these. I rather doubt they lost $1 billion in an
afternoon, though.

Thanks to Techweb's Mo Krochmal for pointing out this very easy way to
figure loss.

David Newman
Network Test





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