If you view money spend on reducing risk that ended up not being fulfilled, I believe you are correct.
However, one major component of businesses that private individuals do not understand is the value of risk reduction. In a major sense, many businesses are in the business of reducing or quantifying risk.
To an individual, it may not be worth $100k to make sure everything runs correctly. To a business, that might be an easy decision.
It is especially compounded because private individuals don't typically calculate the cost of their time. If a business can spend $100k to make sure their website doesn't go down, their ROI calculation is: probability_of_downtime * cost_per_unit_downtime + cost_to_fix + cost_to_report_causes + cost_to_explain_why_it_happened.
At $100 - $300 per hour per employee, costs rise FAST.
Businesses need to control risk, and will pay money to do so.
However, one major component of businesses that private individuals do not understand is the value of risk reduction. In a major sense, many businesses are in the business of reducing or quantifying risk.
To an individual, it may not be worth $100k to make sure everything runs correctly. To a business, that might be an easy decision.
It is especially compounded because private individuals don't typically calculate the cost of their time. If a business can spend $100k to make sure their website doesn't go down, their ROI calculation is: probability_of_downtime * cost_per_unit_downtime + cost_to_fix + cost_to_report_causes + cost_to_explain_why_it_happened.
At $100 - $300 per hour per employee, costs rise FAST.
Businesses need to control risk, and will pay money to do so.