The Danger of Downtime and How Much it can Cost Your Business
Downtime: the dreaded result of IT issues within a company’s infrastructure. Downtime is a costly problem that can detract from finances and reflect negatively on a company’s brand and services. The effects of downtime will be a little different for every unique business, but the consequences usually amount to the same thing. When you know about what causes downtime, and the aspects of your business it can affect, you can accurately estimate the potential cost and evaluate the harm it can do to your business.
Downtime happens when your IT isn’t functioning properly
When your IT isn’t functioning properly, it can severely hamper your operations; if not shut them down entirely. So much of business relies on technology that the effects of an IT failure can ripple throughout your company. Though it’s difficult to calculate exactly how much downtime will cost you financially until after it has happened, you can get a fairly accurate estimate by considering the main areas of your operation that downtime will affect.
The main aspects of your business that are affected by downtime include employee costs and revenue. Employee costs are measured by the hour by totaling the cost of salaries and benefits for your employees each week and dividing them by the average number of working hours per week. Revenue can be estimated by adding up the total revenue made per week and dividing it by the number of hours per week. You also need to estimate the fraction of employees affected by the outage and the fraction of revenue affected by the outage.
If you multiply the employee costs per hour by the fraction of employees affected by the outage, you can estimate how much an outage will cost you in lost productivity. Then, multiply the average revenue per hour by the fraction of revenue affected by the outage, and you can guess how much revenue you will lose. Add these two figures together, and you have a ballpark figure for the expensive cost of an IT outage.
The best way to avoid expensive downtime is a solid IT solution
An effective IT solution is the key to keeping your business technology running smoothly and avoiding unplanned downtime that can cost you thousands of dollars and a valuable reputation. However, IT can be a challenge for small to midsize businesses who can’t afford to build and staff an IT department from the ground up at this stage. The clear solution is to outsource your IT to keep your company running smoothly.
An expert IT service can provide the highly qualified and experienced IT work that large corporations enjoy, but for a fraction of the cost it takes to develop your own in-house solution. You can pay for all the solutions you need, but nothing more, and then focus on your business. The professionals will take over and keep your technology running securely and effectively day to day, protecting you from the hefty losses downtime can cause.