The Cost of Downtime

[fa icon="calendar'] 2/2/16 5:00 AM / by Sam Bloedow

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More Data and More Threats to its Security

Most data loss disasters aren’t making the headlines, but the costs that businesses are paying because of the downtime that results from data loss are just as threatening as an oncoming tornado. The amount of data that is being created and stored is more than doubling every two years. By the year 2020, the amount of data could grow by 50 times. Small and medium sized businesses are contributors to this data growth and are placing increasing value on their data because of its importance to business operations. While the data pile is growing, so too are threats to its security.

Downtime is a Business Concern

Downtime looks different for different businesses, but when it stops business processes the repercussions are serious. When internal business processes are stopped, invoices can be created, materials can’t be purchased, products can’t be shipped, work can’t be scheduled, and employees can’t be paid. Downtime impacts the ability of the business to produce revenue, and secure future orders when reputation is damaged or the company gets into a situation of non-compliance with regulations.

Lost Sales and Customers

During a data disaster, a company may not have access to customer or product data. In the B2B world, this could cause a chain reaction down the supply chain. When products can’t be produced or services scheduled, it can mean a direct hit on revenue. Customers expecting their orders on time will have their own consequences to face when their supplier can’t deliver. For some businesses this could mean heavy penalties for failure to meet contract terms. It could also result in lack of confidence and a reason to shop around for a better supplier.

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Employee Productivity Impacted

When a downtime disaster occurs, what are employees doing? They could be idle. They could be directed towards fixing the problem. They could be handling the consequences of downtime. In any of those scenarios, they are not doing what your company needs to be doing to produce revenue and take care of customer needs.

What is downtime going to cost?

Ask yourself, how long can my business be down without it affecting the bottom line? Is the answer measured in seconds? Minutes? Hours or days? Is the answer never? Next ask yourself, how much are you willing to pay to restore lost data? Let’s say that you lost 20 MB of data. If you were an accounting firm, it could cost you around $19,000 to recreate that data. If you were an engineering company, it could cost you up to $98,000. This is in addition to the costs of

Better IT Results Mitigate the Threat of Downtime

The way to avoid paying the cost of downtime is to not have to experience it at all. Thriveon clients experience IT results that help them move business forward. It just takes 30 minutes to explore how your current IT results compare with those of our clients. Contact us at 855-767-2571 or info@thriveon.net to schedule a discovery meeting.

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Topics: Better IT Results