{"id":1357,"date":"2021-03-02T21:09:00","date_gmt":"2021-03-02T21:09:00","guid":{"rendered":"https:\/\/www.pax8.com\/future-blog\/cost-of-downtime\/"},"modified":"2023-05-17T01:03:40","modified_gmt":"2023-05-17T01:03:40","slug":"cost-of-downtime","status":"publish","type":"post","link":"https:\/\/www.pax8.com\/blog\/cost-of-downtime\/","title":{"rendered":"Calculating the cost of downtime"},"content":{"rendered":"

Learn how to calculate the cost of downtime \u2014 and use that data to illustrate why clients need backup.<\/p>\n

An employee clicks on a malicious email link and launches a ransomware attack that locks up your files. A critical piece of hardware fails. A construction company cuts a major network cable in the street outside your office. A hurricane floods your server room. One moment your business is humming along and the next all systems are dark and productivity grinds to a halt. No matter the cause, the cost of downtime can be catastrophic for a business of any size.<\/p>\n

While most of your clients probably understand that these types of outages are possible at a logical level, it can be all too easy to put off planning for disaster and hope the day never comes.<\/p>\n

As their trusted tech advisor, if you can calculate in hard numbers how much downtime will impact their business, it can startle clients out of their complacency and open the door for a conversation about backup and continuity solutions. Below are some tips for how to calculate the cost of downtime for clients \u2014 and how to use that data to show them why they can\u2019t afford to be without backup.<\/p>\n

Crunch the Numbers<\/h2>\n

There\u2019s no perfect formula for estimating how much downtime can impact business, because every organization and every downtime situation is unique. However, most calculations take a few common criteria into account to determine how much each hour of downtime costs a business:<\/p>\n

\u2022<\/strong> Lost sales<\/p>\n

\u2022<\/strong> Lost productivity (the number of employees multiplied by the average salary of those employees)<\/p>\n

\u2022<\/strong> Expenses being paid while employees can\u2019t work (i.e., rent, utilities, and technologies)<\/p>\n

To make the math easier, Pax8 developed a cost of downtime calculator. Simply sit down with your client and plug in the numbers to find out how much an hour of downtime will impact their business \u2014 and how quickly they could see ROI on a backup solution.<\/p>\n

Check out the calculator<\/a><\/p>\n

Other Costs to Consider<\/h2>\n

In addition to lost revenue and productivity, your client should also consider the expense of restoring data and getting back to business, especially from an incident such as ransomware. That could include hourly costs from your MSP technicians or a data\/security consultant and the cost of any technology solutions that may need to be deployed.<\/p>\n

Additionally, if your client is in a compliance-regulated industry, a data breach that leads to downtime can also result in fines and penalties.<\/p>\n

Don\u2019t Forget Intrinsic Costs<\/h2>\n

Downtime hurts business beyond just the financial impact. A long enough outage can cause businesses to start experiencing:<\/p>\n