The Costs of Fragmentation International Data Corporation (IDC), in a white paper entitled âDisk Defragmentation for Windows NT/2000, Hidden Gold for the Enterprise,â estimated that the global cost of fragmentation is $50 billion annually. There are many factors that contribute to this cost and some of them are not all that obvious. We will now examine the components of the costs of fragmentation and how they affect an organization. Productivity Defragmentation improves system performance, resulting in improved end user productivity. But how can this be measured and quantified? Most defragmentation software vendors provide tools that let you measure the time it takes to read a file before defragmentation and after. Testing has shown that defragmentation can improve I/O performance by 30-50%. The IDC report says 30- 85%. If you can improve every I/O on a server by 30%, what is the savings in terms of productivity?