Robust and efficient application servers are essential for companies relying on software applications, whether these support e-commerce platforms, financial services portals or internal operations.  To help ensure smooth operations, deliver seamless services to users and generate revenue, it’s important that the runtime in place can offer maximum uptime to reduce cost while optimizing performance, profitability and user satisfaction. 

In this blog post, we share insights from industry players on the impact of unexpected application server issues and downtime as well as how to reduce them.   

While we all want application servers to run seamlessly and non-stop, the harsh reality is that even the most reliable will experience some downtime, which will take up time, money and resources.  

Mimi Nguyen, Founder at Cafely, explains: “Being in the e-commerce arena, dealing with application server issues on platforms like Google Cloud and AWS is essentially part of the job. On average, resolving these issues costs us several thousand dollars annually. Indeed, it's a hefty investment.” 

Application Server Issues: Financial Considerations 

Cafely is not the only company reporting such high expenses. Ataur Rahman, CEO and Founder of Wpmet, a leading company in the WordPress and SaaS industry, adds: “When dealing with application server issues, I’ve found that the costs can quickly add up. Maintaining and supporting these applications can take a significant chunk out of the IT budget, typically around 20% to 50% of the initial project cost every year. For mid-sized projects, this might mean spending anywhere from $5,000 to $11,000 each month. These costs cover essential services like hosting, monitoring analytics, identifying and fixing errors, and enhancing customer experience. The necessity of these expenses becomes clear when you consider the potential for unexpected issues like server upgrades, hardware incompatibilities, or unanticipated user activities. 

"The most common application server issues I experience include server downtime, performance bottlenecks, and security vulnerabilities. Downtime often results from server overloads or hardware failures, leading to service disruptions that can significantly impact user experience. Performance bottlenecks typically arise from inefficient code, resource contention, or inadequate server configurations, causing slow response times and affecting overall system efficiency. Security vulnerabilities, such as unpatched software or misconfigured security settings, pose significant risks, potentially leading to data breaches and other malicious attacks. Addressing these issues promptly is essential to maintaining a robust and reliable application environment.” 

Beside the cost associated with addressing such issues, companies often incur additional expenses. Javier Muniz, CTO of LLCAttorney.com, says: “I can share some valuable insights on the costs associated with application server issues and the gaps in service level agreements (SLAs) from a tech leadership perspective. 

"It's often underestimated, but the costs of fixing application server issues go beyond raw out-of-pocket expenses. Factoring in downtime, productivity drop, opportunity cost, and reputational damage, the implied cost can range from $5,000 to $10,000 per incident in our experience.” 

Setting up a budget for unexpected failures can help companies be financially prepared to handle such emergencies without disrupting other business activities. In effect, they can make sure that resources are available to keep operations running, thus protecting their revenue stream. 

Brett Farmiloe, CEO at Featured, explains: “Allocate a fixed percentage of overall application server costs towards server maintenance and repair. A general, good percentage range is around two to five percent of total server expenses associated with an application. 

“Of course, this percentage can fall on the lower end if you have dependable support and a strong Service Level Agreement (SLA) to service your application.” 

In addition to allocating funds to cover any emergency, companies should partner with a reliable provider that offers highly effective technical assistance and robust SLAs. For example, at Payara we believe responsive, round-the-clock is essential for customers running mission-critical applications. This is why our service team is available 24/7 and offer rapid response times within one hour to critical incidents (Priority 1). 

A spokesperson fromHyperwallet, a PayPal Service, shared the following review: “We have been working with the Payara Support Team for the last couple of months and, so far, we are positively impressed with the response level and the quality of documentation provided by the Payara engineers. The whole support team is aware of our circumstances resulting in a support service that offers straight forward solutions for our specific issues”. To read more about this collaboration, check this page.  

To Be Continued

In our next blog post, we’ll look at what companies should look for in an application server and SLA to maximize uptime and profitability. Stay tuned to get insights fromShane McEvoy, MD at Flycast Media, Konrad Martin, CEO at Tech Advisors, Tushar Thakur, Co-Founder and Tech Blogger at TechKV, Deyan Georgiev, Cybersecurity Expert at Rapidseedbox.com, Burak Özdemir, Founder of Online Alarm Kur, Shir Amram, COO at Montana Capital, Tornike Asatiani, CEO at Edumentors, and Jason Smit, CEO at Contentellect.