What Does Downtime Really Cost Your Business?
Did you know the average business experiences 14 hours of downtime each year? CA Technologies conducted a survey that revealed what small, midsize and large companies lost each year on average on IT failures:
- Small enterprises lost more than $55,000/year
- Midsize companies lose more than $91,000/year
- Large companies lost more than $1,000,000/year
How To Calculate the True Cost of Downtime
These numbers may not sound like an equal comparison to your business, but consider:
- How many employees will you pay to sit idle while IT issues are resolved?
- Will you have to pay employees overtime to make up for lost productivity?
- Will you have to develop marketing efforts to explain to customers and apologize for the disruption in service?
- How much revenue could have been generated during the period of downtime?
Downtime affects all areas of your business. Consequences can be direct and indirect, tangible and intangible, immediate and long lasting.
Direct, Tangible Costs of Downtime
• Lost sales revenue
• Penalty fees such as priority shipping charges, bank fees or contract penalties
• Lost inventory/materials
• Overtime wages paid out to compensate for lost employee time
• IT recovery costs
Indirect, Intangible Costs
• Loss of business opportunities
• Bad publicity
• Loss of customer trust and goodwill
• Decrease in stock value
• Damage to company brand
• Loss of customers to competitors
Use these simple formulas to get an idea of what downtime really costs your business:
To Calculate Your Average Labor Costs During Downtime:
LABOR COST = P x E x R x H
P = number of people affected
E = average percentage they are affected
R = average employee cost per hour
H = number of hours of outage
To Calculate Potential Downtime Revenue Losses:
LOST REVENUE = (GR/TH) x I x H = Expected annual lost revenue costs
GR = gross yearly revenue
TH = total yearly business hours
I = percentage impact (A high percentage would mean you can’t complete transactions, you have a high risk of losing clients, bad press, etc.)
H = number of hours of outage (Gartner Research Group estimates the average business suffers 87 hours of downtime per year)
Don’t let a System Failure Shut Down Your Business
OnCloud Premium Data Backup and Disaster Recovery Solution is Ontech’s robust cloud backup solution that revives your company network in almost no time, so your employees can be productive again – with minimal impact on your business.
Through this solution, your vital company data is backed up as frequently as every 15 minutes. In the event of a problem, files are restored in about 30 minutes.
If avoiding downtime is critical for your business, our system can take over as a virtual server to resume operations until issues within your network are properly resolved. In a disaster scenario, a remote server backup is available to keep your files and data secure. In other words, we’ve got you covered.
6 Ways OnCloud Premium Data Backup and Disaster Recovery Solution Can Benefit Your Business
1. OnCloud D.B.D.R is Always Reliable
Your data is backed up every 15 minutes – every day.
2. Your Business Will Be Up and Running – Fast!
Let’s face it. Server’s crash and networks fail. But you can be prepared. With our virtual server engaged and deployed, we’ll have your network up and running again in no time.
3. OnCloud D.B.D.R Complies with Laws and Government Regulations – HIPAA and Sarbanes-Oxley
The last thing any business wants to do is violate government regulations for protecting sensitive data at the state or federal level. OnCloud business continuity solution ensures you will stay in compliance with these regulations.
4. You’ll Be Able to Recover Vital Email
At some point in time, we’ve all deleted or lost an email that contains critical information. OnCloud’s email recovery feature for Microsoft Exchange Servers can recover those important messages from days or even months ago and save the day!
5. You’ll Receive Remote Monitoring and Management (RMM)
RMM service is included with our business continuity solution to ensure small issues don’t become big problems.
6. Your Data Will Be Safe When Major Disaster Strikes
No matter what the disaster is – fire, flood, tornado; devastating damage to your company facility is always a possibility. If Mother Nature strikes, you’ll be one step ahead. Our remote SAS70 Type II and HIPPA compliant data centers will safely house your data and records so you can get back to business as soon as possible.
Cloud Backup Guides and Solutions
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A quick 10-minute call is all it takes to see if we’re a good fit. If we aren’t for whatever reason, we’ll point you in the right direction.