A slew of new research reports from Aberdeen Group came out recently about the cost of IT downtime and the numbers are staggering.

The analyst firm puts downtime at an average of $163,674 per hour! It’s no wonder that companies are increasingly worried about business continuity and how to keep employees productive even in the event of an IT outage.

Calculating the Cost of Downtime

When figuring out what IT downtime can cost your company, take into consideration more than just the cost of replacing a damaged server or the salary of the IT person in charge of restoring your backups. True downtime calculation involves the following:

  • Productivity Loss: meaning the labor cost per hour of downtime and how many employees are affected.
  • Revenue Loss: includes lost new sales (if the sales team or the company’s ability to sell is impacted) and attrition of current customers.
  • Data Loss: which involves not only the time and cost for reconstructing data in case there was corruption because of downtime or because the outage happened prior to backups running, as well as any regulatory fines you might be subject to (for example, HIPAA or SOX regulations impose fines on loss of data).

 A Downtime Calculator

To make it easier for you to calculate your own cost of downtime Axcient has created a simple online calculator that walks you through a handful of questions and gives you an estimated cost of downtime. Once you see the results, you can drill down into the assumptions and industry standards we use and fine tune it to fit your business.

IT downtime is serious business, costing companies hundreds of thousands of dollars per year. Knowing how much downtime can cost your company is the first step toward protecting your business. After you run the calculator, contact us to learn more about how Axcient can help protect your data, your critical applications and your business from downtime.

Cost of Downtime Calculator

Click to try the Cost of Downtime Calculator.


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