The Cost of Downtime – Disaster Recovery Plan
How much is an hour of your time worth? What about an hour for your business? For over 80 percent of businesses, an hour of downtime costs over $300,000. For larger companies, this number is even higher. Annual downtime costs for Fortune 1000 companies soar between $1.25 billion to $2.5 billion. With the average downtime per incident for companies in the U.S. at almost eight hours, it’s easy to see how one in four businesses that experience a major disaster close their doors.
How much does downtime cost me?
In order to determine the cost of downtime, think through how much of your business requires you to be online. Here are the factors to consider for an hour of lost time:
- Loss of revenue: The amount of money a business makes per hour multiplied by the percent of which uptime is needed.
- Productivity: The total hourly rate of all employees multiplied by the time they require uptime.
- Recovery: The costs of everything to bring back the system. This ranges from recreating lost data to repairs needed to bring the network back online.
- Reputation: The lasting impact downtime can have on customer loyalty and opinion on your brand.
Bar Chart reports the minimum, median, mean and maximum cost per minute of unplanned outages computed from 63 data centers. This chart shows that the most expensive cost of an unplanned outage is over $17,000 per minute. On average, the cost of an unplanned outage per minute is nearly $9,000 per incident. Source – Ponemon Institute© Research Report
How do I limit my downtime?
Downtime is inevitable. However, you can prepare yourself so should your systems be down, you can get back up and running in minutes. The best way to do this is by implementing a disaster recovery plan. Think through potential scenarios such as a power outage, theft, or virus, and proactively determine solutions to be back online.
An excellent way to do this is by having a good managed IT service provider that proactively manages and maintains all your systems and networks from possible threats. In addition, a complete disaster recovery provides you with the tools you need to restore your systems (and all the potential lost data) as soon as possible.
How much does downtime cost your business? Contact us for more information on the effects of downtime or to learn how a complete disaster recover can benefit your business.