It is well known that downtime translates into a loss in revenue for your business, but assigning an exact number has always felt like a guess. Today, we want to share a mathematical formula to determine the true cost of downtime. Warning: business owners who often suffer from IT downtime may want to tread cautiously ahead.
The first formula is concerning downtime to loss of sales:
Yearly Revenue/Business Hours x IT Impact to Sales % = Lost Sales
The second formula determines how much employee productivity is lost with downtime:
Employees Affected x Average Employee Cost Per Hour x Average % Affected by IT = Lost Productivity
We would like to point out that these equations focus on downtime caused by IT problems, like computers crashing and the network going down.
Both of these equations can be used to objectively quantify the cost associated with unplanned downtime. When you enter in your numbers into the equation, it is good to keep in mind not only the day-to-day downtime, but also the worst case scenario. If something drastic did happen to your business, like a fire or flood, how much time would it take for you to get back on your feet?
Day-to-day technology problems (computer hiccups) can add up to a large loss. Keeping your computers running smoothly is the key. If your current IT approach is reactive (you wait until something breaks before you fix it), then you will really see the downtime start to add up with each repair. Proactively maintaining your computers will prevent most issues. Tektonic provides an IT monitoring service that will take care of issues while they are small and unseen, as well as keep software licenses and antivirus up to date, and there is no downtime factored into a monitoring service.
If the worst case downtime scenario happens, like a major disaster, then a backup disaster and recovery solution (BDR) is the most secure and fastest option to get your business up and running again. A BDR is ideal because it stores all of your data offsite, and it lets you respond quickly to a server outage as it can take over for the downed hardware, this will keep you working with minimum downtime.
It is good to keep these numbers in your mind when you shop for IT solutions. Maybe you have been unsure about how much to budget for IT, or you have been on the fence about purchasing a reliable backup solution. Now that you know the numbers for loss-of-revenue associated with downtime, IT monitoring service and BDR will look like a bargain! Tektonic specializes in eliminating downtime and maximizing uptime for all of your technology. Give us a call at (416) 256-9928. Your Phone + Our Phone + Our Expertise = Time + Money for You!