The Real Cost of Business Downtime

THE REAL COST OF BUSINESS DOWNTIME Whether you are classed as a small to medium business or a global service provider, the impact of unscheduled downtime can be devastating. If not dealt with quickly and effectively, the costs to your business could be crippling. 333 37% 552 2 DAYS of IT downtime per year man hours per year In Europe, the average During these periods of downtime, companies 552 MAN HOURS estimate that the ability to generate revenue is The average European company suffers at least 14 HOURS of IT downtime per year company loses per year due to IT downtime REDUCED BY 37% WHAT CAN CAUSE DOWNTIME? Old equipment O Security threats O Software updates O Connectiuity O Human error O Data storage reaching full capacity THE DOWNTIME CALCULATOR EXAMPLE A company with 1,000 employees experiences an outage that disrupts an application used by 400 staff. Those employees need this application to perform 50% of their work. The average LABOUR COSTS cost per hour for these employees is £25. The outage lasts for 3 hours. = N XI XD X C %3D So, this would be: 400 x.5 x 3 x 25 = N = Number of people affected £15000 1= Impact on productivity (%) = Duration of the outage = Cost/employee/hour (average) As well as this hefty dent in your profit, you also need to factor in two other variables that take this loss to an even higher figure: = Value of lost revenue LS= Lost Sales THE DOWNTIME ICEBERG Unhappy customers Sales affected EMPLOYEE PRODUCTIVITY COMPROMISED BRAND DAMAGED VALUABLE TIME SPENT FIXING PROBLEM THE DOMINO EFFECT When several business systems are working in tandem, the unexpected downtime of one element can have a knock-on effect INTERNET DOWN = NO ACCESS TO INTERNET NO ACCESS TO SEND AND CANNOT PROCESS ORDERS OR DEAL BANKING RECEIVE EMAIL WITH ENQUIRIES FAMOUS DOWNTIME www.famousdowntime.com Google In August 2013, Google went down for five minutes causing a 40% drop in global traffic. 2013's Super Bowl Sunday experienced a blackout that left 108 million viewers waiting 34 minutes for the game to resume THEIR COST OF DOWNTIME INCLUDES $4 $400 MILLION MILLION $4 million A potential loss of more than Incalculable $400 million lost per 30 seconds damage to the NFL's reputation of on-screen ad time to the local economy if New Orleans is not chosen to host again in 2018 In 2013 a technological banking glitch left the customers of the Royal Bank of Scotland group (which includes NatWest and the Ulster Bank) unable to pay for transactions on Cyber Monday - one of the bUsiest shopping days of the year $33 333 TRANSACTION CANCELLED!! THE IMPACT OF THIS IT FAILURE INCLUDED: Millions of customers unable to pay for goods on the busiest online shopping day of the year A massive blow to their brand reputation Problems withdrawing Access issues to the online banking sites and smartphone apps money from cash machines SOURCES engineering.gosquared.com/googles-downtime-40-drop-in-traffic www.nola.com/superbowl/index.ssf/2013/01/super_bowL2013_reverberating.html blog.zenoss.com/2013/06/the-cost-of-downtime/ www.ca.com/-/media/Files/SupportingPieces/acd_report_110110.ashx