Research is revealed as Magnet+ unveils new service ‘Magnet Duo’, Ireland’s first fully guaranteed internet connection, providing customers with two lines to ensure high speed broadband connectivity at all times
- Lack of back-up systems leaves thousands of Irish businesses wide open to substantial losses from a business continuity, revenue and reputational perspective
- Magnet+ calls for a new minimum industry standard that requires telcos to provide two lines of broadband to guarantee 24/7 connectivity
80% of businesses around Ireland are failing to acknowledge the criticality of connectivity by not having an appropriate back-up system in place according to new research released today by Magnet+, Ireland’s largest independent connectivity network.
With 270,000 SMES in Ireland currently, (269,708 according to the latest figures from Statista) , the research, which was conducted by Behaviour and Attitudes (B&A) on behalf of Magnet+, indicates that approx. 216,000 businesses are leaving their systems vulnerable to significant loss in the case of a connectivity malfunction or system failure. In response to these startling results, Magnet+ has developed a new service, Magnet Duo, the first of its kind in Ireland guaranteeing internet connection at all times.
Magnet Duo provides customers with two individual active links – instead of one, which is the current standard – powered by Fortinet technology to ensure a secure, seamless and optimised user experience. Each link operates independently which means if one link is interrupted for whatever reason, traffic automatically switches to the other until the first is operating again. Each link is also connected to a different data centre meaning again, if one connection is interrupted, traffic is automatically routed via the other centre. The use of this Fortinet technology is a key element of the Magnet Duo service and its ability to fully guarantee your server won’t ever lose broadband connection which is a guarantee no other provider in Ireland currently offers.
To further demonstrate the meaning of these results and the risk Irish businesses are taking by not engaging in the proper connectivity back-up, Magnet+ has calculated that an average business in the IT sector could lose up to €20,000 per working day due to connectivity failure and having no back-up in place. Recent CSO figures show that the IT sector has an average hourly labour cost of €48.39 meaning an IT related business with a team of 50 could lose productivity worth €2,419.50 per hour – working out at almost €20,000 per average working day (€18,146.25). Similarly, businesses outside of the IT sector with a team of 50 could also be impacted financially if they are without the appropriate connectivity back-up according to these CSO figures, for example:
- Financial, Insurance and Real Estate – potential loss of €17,145 per day
- Arts, Entertainment and Recreation – potential loss of almost €8,550 per day
- Accommodation and Food Services – potential loss at almost €5,520 per day
These figures don’t include the revenue loss for a transactional online operation, as well as the knock-on impact of reputational damage.
John Delves, Managing Director of Magnet+, is calling for the immediate implementation of a new industry standard that requires all telecommunications companies to provide two lines of broadband at all times to guarantee 24/7 connectivity:
“If you don’t have connectivity, you can’t operate as a business – it’s as simple as that. That’s why I’m totally shocked by the figure that 80% of businesses don’t have a back-up system in place. Every day we’re seeing the real-life impact that connectivity failure has on businesses and it’s these failures and the alarming results of our research that led us to develop our new service Magnet Duo, Ireland’s first fully guaranteed internet connection. This means whatever happens – burst pipes, freak weather or broken cables – two lines will keep you connected and working. Guaranteed. It’s a direct, dedicated line to the internet – think of it like a private jet, exclusively owned by your business. So, if your power supply stays on, we guarantee your Magnet Duo connection will too – and you’ll keep working and trading smoothly and seamlessly.
At this stage, you would assume that businesses understand the criticality of connectivity to their business but the figures from our research show that they really don’t. I’d urge every business to do a trial – cut off their connectivity for just five minutes and assess the chaos that unfolds. That should be enough to encourage any business to review their connectivity options and ensure they are protected in the event of an outage
Paul Donegan, Country Manager with Fortinet said:
“Fortinet are delighted to work with Magnet+ on delivery of their intelligent networking and connectivity service Magnet Duo to Irish customers. With connectivity and technology being the key focus point of the engagement Magnet+ have designed a solution powered by Fortinet technology that provides two links routed to individual data centres connecting to the internet at all times in the most reliable way to guarantee 24/7 internet connection. By leveraging the FortiGate platform they can offer their customers a guaranteed connection alongside the assurance that customers can avail of world leading firewall features and other capabilities including IPS, application control, anti-virus, antimalware and web filtering all in a single consolidated platform.”
The research from Magnet+ also revealed the most common issues businesses have with their telecommunications provider as well as the key services that businesses are most interested in receiving. The biggest problem for the majority of businesses (35%) is being left on hold when trying to contact them, while one in five (23%) report the biggest issue with their telecommunications provider is not being able to physically get through to them.
Subsequently, the top two services businesses require from their provider include wanting their calls to always be answered by a person in real life (74%) as opposed to a bot and to always be able to get through via the phone (70%) when contacting their provider. The reoccurring theme from these results relays the message that no matter how far technology advances in the telecommunications sector, the human element is still the top priority for customers.
Other common issues evident from the research include:
- Broadband being unstable or down is the biggest issue for 30% of businesses
- Having to get the same problem resolved multiple times is the main issue for almost one third of Irish businesses (27%)
- Not knowing when a problem will be resolved (27%) or who is in charge of the problem (25%) are main issues for a significant number of Irish businesses
- Almost 20% of Irish businesses say not being updated on the current status of an issue via phone is the biggest problem they have with their provider
Other services businesses are interested in from their connectivity provider include:
- Over half of businesses (56%) place significant importance on being able to have a live chat (i.e., instant messaging) with their provider
- Almost 40% of businesses value being able to track the status of current issues live
- Over one quarter (26%) would like a dedicated portal to review their account
Surprisingly, just 17% of businesses are interested in the ability to have a video chat with provider.
Commenting on these results, John Delves said:
“At Magnet+, we commit to putting a human touch on every aspect of our business and our customers journey, with a key focus on ‘People Powered Connectivity’. This means guaranteeing that when a customer contacts the company, they will be speaking to a real person and not a ‘bot’. The results from our research highlight the importance of the human element when it comes to customer service which is crucial to know as we manoeuvre through an increasingly more digitised world of work.”
The research is unveiled as part of an ambitious growth plan for Magnet+ to expand, transform and improve its offering to customers. With customers at the core of everything Magnet+ does, no other provider in Ireland is more capable, qualified or trusted to operate and protect any business connectivity network in the country.
The research was carried out by Behaviour and Attitudes (B&A). Fieldwork was conducted in Q4 2022 with a sample of 400 participants.