For IT Managers and System Admins it is really useful to understand the economic impact of network downtime in your organisation. Downtime can be measured in several ways to achieve a numeric value of pounds and pence or dollars and cents. This numeric value can be your driver and battle card when pushing your finance department for the next IT project.
The cost of downtime is probably far more severe than most people in the business will realise. It's important to know what your organisations downtime costs are, as they can be a huge revenue saver for the finance team. Less downtime also means that you can focus on strategic IT projects that drive more productivity, revenue and growth.
To most common cases of downtime:
- Human / user error
- Natural disaster
- Cyber crime
- Software failure
- Bad deployment / poor startegy
- Domain failures
- Network overload
What is the damage of downtime?
- IT recovery costs. Hiring a consultant to fix a problem remotley or onsite can cost in excess of £5,000 if the problem lasts more than a couple of days.
- Compliance violations. Downtime can cause compliance issues dependant on your organisation. Healthcare, finance and security firms can some under immense scrutiny and potential compliance isses when a network goes down, or a security feaure fails.
- User stress. The most common reason for employees to be frustrated at work in 2016 was 'problems with technology'. No one wants to be held back from doing their job and fialing technology doesn't make you feel like you're working for a successfull organisation.
- Brand and reputation. It takes years to build a brand that customers find reliable, trustworthy and connected to. Successful budget placement with advertising and rising above competitors is something only a few organisations master. To lose brand value overnight or over a sustained period is inexcusable and relativley easy to prevent with the correct IT support system in place.
- Cost of restoring IT systems. Often you need specialists to rebuild the IT system, or atleast consultant or some of the problems once things have gone down.
- Data loss. With enterprises storing more and more information on remote and cloud based solutions, it has left a tempting environment for potential hackers and cyber criminals to exploit the industries lag in keeping up with tightening security loopholes. Data loss equates to one of the longest durations of downtime for any business. Many organisations do not have the infrastructure or strategy in place to make live backups of all the companies data.
- Employee idleness. With users not able to access the network or use their devices, you are losing valuable time to bring in business as an organisation. It's important your SLA times are tight and managable in order to not lose too much revenue when things go downhill. Idle time is not good for the business or the employee and firm processes or an IT partner need to be in place to prevent it.
- Supply chain disruption. Supply chains are becoming more complex and longer as globalisation develops. This allows opportunities for technology to disrupt the chain at a much more prevenlent level. 80% of companies worldwide have targetted protection of supply chain as a priority. Bussiness need to have mitigation plans in place to be more prepared to deal with IT issues than their competitors.
We have created a downtime calculator that gives you a close estimate to the amount of money your organisation is losing in direct and indirect revenues. Our downtime calculator is only a couple of questions, so it will only take a few seconds to find out your result.
Link to : Downtime Calculator if downtime calculator isn't showing.
One of the biggest threats to downtime currently is Ransomware. If you haven't yet, read our blog on how to prevent Ransomware.