Out of the Box Solutions Blog

Downtime Adds Up to a Big Deal, Really Quickly

Downtime Adds Up to a Big Deal, Really Quickly

There are a lot of words that a business owner doesn’t like to hear. One of the worst? Downtime. While this word may seem essentially harmless at first glance, it signifies a much larger range of issues. Here, we’ll examine how to calculate the impact of a downtime event.

It is important that we review the various impacts that downtime can have on a business (and for that matter, usually does). These impacts can be felt in your customer relationships, via:

  • Customer dissatisfaction and displeasure
  • Decreased loyalty to your business and brand

There are also impacts your business will experience directly:

  • Lost revenue
  • Cost of recovering, repairing, and/or replacing IT solutions
  • Lost or wasted materials
  • Compliance and regulatory issues
  • Repercussions to your supply chain
  • Overtime costs to make up for lost time so deadlines can be met
  • Decreased employee morale and increased stress
  • Lost internal productivity and the costs of still reimbursing your employees

Let’s examine this last factor a little more closely, as it can be tricky to calculate. It will require you to estimate each employee’s utilization percentage for their technology, which is effectively how much of their work requires your technology solutions to complete, and multiply it by each employee’s salary per hour. If you have multiple employees with the same salary and utilization percentage, you can then multiply this number by the number of employees affected by the downtime to find your total lost productivity per hour.

This gives us the following equation:

(Salary per Hour x Utilization Percentage) Number of Affected Employees = Lost Productivity

Fortunately, calculating your recovery costs and your intangible costs (or the costs that result from damage to your reputation) is considerably simpler, as this only takes some simple addition.

Combining all of the costs detailed above, we can calculate the total hourly cost of a downtime incident:

Downtime per Hour = Lost Revenue + Recovery Costs + Lost Productivity + Intangibles

This number might be a little shocking to you, but it should also reinforce just how wasteful downtime truly is. There’s just no getting around that fact. As a result (although you probably already realized this) it is imperative for your business’ success that you prevent as much downtime as you can.

Out of the Box Solutions can help with that. Our monitoring and maintenance services catch potential causes of downtime and resolve them before they have an effect on your operations. That way, your productivity is preserved without you needing to divert your attention from your daily business operations.

Interested in learning more about our services and how they will benefit your business? Read some of our other blogs, and make sure to reach out to us at 800-750-4OBS (4627).

You Need More than a Firewall to Secure Your Busin...
Seven great Business Communications Options
 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Monday, August 19 2019

Captcha Image

Mobile? Grab this Article!

Qr Code

Tag Cloud

Tip of the Week Security Best Practices Technology Business Computing Network Security Productivity User Tips Malware Efficiency Communication Data Privacy Microsoft Hackers Tech Term Mobile Device Google Internet IT Support Computer Smartphones Hardware Email Windows 10 Users Innovation Ransomware Cybersecurity Small Business Business Management Communications Managed IT Services Android Mobile Devices Passwords Business Software IT Services Cloud Workplace Tips Browser Network Information VoIp Applications Collaboration Outsourced IT Wi-Fi Data recovery Internet of Things Employer-Employee Relationship Wireless Holiday Smartphone Apps Cloud Computing Bandwidth Managed Service Managed IT services Backup Data Backup Business Intelligence Saving Money Social Media Hosted Solutions Miscellaneous Save Money Networking Gmail Microsoft Office Upgrade Value Marketing Gadgets Laptop Windows Blockchain Cortana Remote Monitoring and Management Computers Telephony Tech Terms Access Control Automation Connectivity Company Culture Medical IT Chrome Paperless Office Facebook Artificial Intelligence Password Cost Management Analytics Healthcare Virtual Assistant Managed IT Service Mobility Wireless Charging Voice over Internet Protocol Patch Management Remote Computing Data Security Quick Tips Net Neutrality Compliance Virtualization VPN Office Processor G Suite BDR RAM Office 365 Data Management Phishing Microsoft Office 365 Windows 7 HP Tactics Content Filtering Business Continuity Settings Display Hard Drives Trends E-Commerce HIPAA disposal Bring Your Own Device Comparison Profitability Taskbar Storage Mobile Security Microsoft Teams Employee-Employer Relationship Antivirus Hard Disk Drive Printing User Tip Reporting Word Data Breach Time Management Document Management Telecommute IT budget Benchmarks SSD A.I. Workers Dark Web Payment Hard Drive Hybrid Cloud Specifications Amazon Eliminating Downtime Physical Security National Security Operating System Voice over IP Electronic Health Records Staff Video Dongle Paper Wearables Lead Generation Network Attached Storage Movies Sales Authentication Maintenance Analysis Certification Battery Risk Management Millennials Error instant Messaging Processors Cables BYOD eCommerce Technology Tips Managing Stress Troubleshooting Health Customer Service Ink SaaS Twitter Tablet Authorization Chrome OS Digital Data loss Router Business Technology Vulnerabilities Vulnerability Machine Learning Database Conferencing Plug-In Wireless Internet Online Shopping Updates Streaming Media Environment Update OneNote Government PowerPoint GDPR Inventory Unified Communications Excel Spam Employees Websites Internet Explorer Training IT Management Touchscreen Cryptocurrency Spyware Cybercrime Proactive IT Help Desk Backup and Disaster Recovery Downloads WannaCry Server Management e-waste Outlook Big Data Windows Server 2008 R2 Sports Telecommuting Personal Information Data Protection Knowledge Human Resources Edge Virus Solid State Drive Safety Threat Tip of the week Security Cameras Server Alert Printers Financial Disaster Recovery Regulation