Spam Could Cost Businesses Worldwide $50 Billion - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Spam Could Cost Businesses Worldwide $50 Billion

Spam will cost the world $50 billion in lost productivity and other expenses this year, according to a new report issued by Ferris Research. More than a third of that, or $17 billion, will be wasted by U.S. companies.

But the damage could be a lot worse, says Richi Jennings, one of the Ferris analysts who authored the report. "We haven't seen as much of a spike in costs as in spam volume because more organizations are putting in better anti-spam technology," he says. Since 2003, spam volume hitting U.S. companies has jumped fivefold, but costs haven't even doubled, Jennings says. Still, revenue for anti-spam software and hosted services will reach $1.7 billion by 2008, research firm IDC predicted last week.

With so much money at stake, it's easy for companies to make a business case for anti-spam technology, particularly in places where labor costs are higher and spam volumes larger. "For developed countries, deploying competent spam-filtering software makes good business sense," Jennings says. In the United States, spam's annual per-mailbox cost to businesses is $170. In Germany, it jumps to $241 based on Germany's higher labor costs, fewer workdays, and high health-care and pension costs borne by companies.

Not every filtering method is economically equal, Jennings says. Server-based filtering is considerably cheaper than desktop-based anti-spam systems; the former typically costs $132 per year per user, while the latter runs $217. "There are very few scenarios where we would recommend desktop filtering," he says. "Any time an IT department has to roll out software to everyone's desktop, you're talking serious money."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
News
Top 10 Data and Analytics Trends for 2021
Jessica Davis, Senior Editor, Enterprise Apps,  11/13/2020
Commentary
Where Cloud Spending Might Grow in 2021 and Post-Pandemic
Joao-Pierre S. Ruth, Senior Writer,  11/19/2020
Slideshows
The Ever-Expanding List of C-Level Technology Positions
Cynthia Harvey, Freelance Journalist, InformationWeek,  11/10/2020
Register for InformationWeek Newsletters
Video
Current Issue
Why Chatbots Are So Popular Right Now
In this IT Trend Report, you will learn more about why chatbots are gaining traction within businesses, particularly while a pandemic is impacting the world.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll