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Originally Posted On: https://nfina.com/how-costly-is-downtime/
To gain a better understanding of how costly downtime can be, Nfina recommends placing a value to your data and what it means to your business. Do you have 50 employees, 200, 1,000 or more? What’s the cost of their downtime? If you are unable to access your data, are you able to generate quotes, access and ship inventory, or view and keep appointments? How many clients have been forced to find another supplier, or can their online orders be submitted? All these issues can be a reality if a disruption or outage occurs. Each have a cost that must be considered when applying a value to your data. Once you have calculated the business value for your data, then you will have a better understanding of what you should budget for Disaster Recovery.
As the importance and value of data grow, being ready to protect and recover it is vital. Nfina’s Hybrid Cloud solutions are designed to prevent downtime and provide the essentials to protect your business data and recover from a disaster.
Disaster Recovery (DR) is an absolute must in this era of 24/7 constant operation and uptime. Threats to business continuity continue to evolve. From ransomware to a hardware failure, to employee error, to natural disaster, a variety of events can cause outages, and the costs of downtime is very high, even for brief incidents. It’s up to organizations to be prepared. But how do businesses choose the best disaster recovery strategy while also making the most of limited resources and budgets?
When there is a disruption to your environment, you need to be able to get your organization back up quickly. Disasters can come from anywhere. Readiness is not something that you address occasionally or when it’s time to recover for real. It must be a daily focus and is something that many midsize and small organizations cannot do by themselves. Preparing for a disaster or outage takes time, resources, and staff that can better be used elsewhere. This is why Disaster Recovery as a Service (DRaaS) exists and is likely a viable solution for your organization.
Downtime Affects Organizations of all Sizes Across Industries
The average downtime that organizations are experiencing is on the rise. Recent reports show a 16x increase. Recent surveys show that 91% of the polled IT executives from large enterprises estimate average downtime of the IT ecosystem to be $300,000/hr, and 44% of those surveyed say its over $1M/hr for their respective companies. Small to medium sizes businesses cost of downtime are between $8,000/hr and $25,000/hr. [1]
In the IT industry, downtime is typically calculated at about $5,600 per minute. Depending on the company’s size, the full range of its lost revenue spans from $150,000 to $450,000 per hour.
In the auto industry, downtime costs are about $50,000 per minute, or about $3 million per hour. Approximately 70% of the downtime issues are associated with employees being unaware of equipment maintenance or update requirements.
In the manufacturing industry, the cost of downtime is approximately $260,000 per hour.
In the enterprise industry, the cost of downtime is valued at over $1 million per hour and can reach $5 million, excluding fines or penalties.
The cost of other industries downtime include:
- Media at $90,000 per hour
- Health Care at $636,000 per hour
- Retail at $1.1 million per hour
- Telecommunications at $2 million per hour
- Energy at $2.48 million per hour
