Advantage IT Management 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.

Advantage IT Management 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 251-662-9770.



No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Tuesday, September 17 2019

Captcha Image

Tag Cloud

Tip of the Week Security Technology Best Practices Business Computing Privacy Cloud Productivity Network Security Hackers Malware User Tips Hardware Efficiency Google Computer Microsoft Communication communications Data Internet Smartphones Cybersecurity Tech Term Innovation Email Software Managed IT Services Ransomware VoIP Mobile Device Business Management Outsourced IT Backup Business Hosted Solutions Passwords IT Support Smartphone Android Small Business Windows 10 Apps Users Browser Miscellaneous Mobile Devices Alert Gadgets IT Services Managed IT Services Network Social Media Applications Bandwidth Collaboration Windows Microsoft Office Workplace Tips Cloud Computing Data Backup Save Money Internet of Things Wi-Fi Employer-Employee Relationship Information Data Recovery Saving Money Business Intelligence Holiday Facebook Gmail Twitter IT Support Wireless Computers Router Access Control Password Data Management Office Managed Service Upgrade Virtualization Chrome Blockchain Business Continuity Law Enforcement Data Breach Hosted Solution Settings BYOD Government Automation Excel Office 365 Mobile Device Management Networking Telephony Marketing Phishing Analytics Physical Security Workers Value Battery Politics Laptop Quick Tips VoIP Cybercrime Company Culture Vulnerability Word Paperless Office Patch Management Healthcare Voice over Internet Protocol Cortana Artificial Intelligence Retail How To Remote Monitoring and Management VPN Recovery Data Security Update Maintenance Medical IT Telephone Systems G Suite Mobility Cost Management Net Neutrality Data Protection Education Website Health Wireless Charging Virus Productivity Disaster Recovery Processor Managed IT Service Apple Operating System Tech Terms Connectivity Dark Web HIPAA Spam Going Green iPhone Scam Compliance RAM Tip of the week Smart Technology Remote Computing BDR Remote Monitoring Server Virtual Assistant App Hacking Gadget Live Streaming Files Document Management Database Touchscreen Video Google Drive Specifications Websites WannaCry Environment Printer Reporting Employee-Employer Relationship Remote Control Work/Life Balance A.I. Personal Information Managing Stress Certification Office Tips Social Cryptocurrency Remote Support Avoiding Downtime IT budget Ink Outlook Backup and Disaster Recovery Shortcut WhatsApp Digital Tactics Microsoft Office 365 Customer Service Two-factor Authentication Conferencing Updates Millennials Safety WiFi Hard Drive e-waste Lithium-ion battery Electronic Health Records Spam Blocking Sales Machine Learning Movies SaaS Disaster Hard Drives Analysis Windows 7 IT Management PowerPoint Biometrics Streaming Media Profitability Recycling Amazon E-Commerce Edge Internet Explorer Antivirus Authentication OneNote Content Filtering Spotify Botnet Processors disposal Automobile GDPR Employees Email Management Tablet Telecommute Unified Communications Bring Your Own Device Training Emergency SSD The Internet of Things Time Management Copy File Sharing Tech Support Eliminating Downtime Batteries Payment News Big Data Threat Authorization Windows Server 2008 R2 Multi-Factor Security User Tip Display Voice over IP Dongle Licensing Sports Spyware DDoS Storage Solid State Drive Knowledge Data loss Hybrid Cloud Security Cameras Phone System Lead Generation Inventory Chrome OS Paste User Security Search Network Attached Storage Downloads Entertainment Printer Server Wireless Internet Uninterrupted Power Supply Windows XP Bitcoin Plug-In instant Messaging Telephone System Printing eWaste Best Practice Taskbar Cabling Benchmarks eCommerce Travel Webcam HP Distributed Denial of Service Error Hard Disk Drive Comparison Current Events Staff Cleaning Windows 10 Cables Wearables Payment Cards Mobile Security Worker Human Resources Business Technology Access Google Maps Server Management Trends Printers Microsoft Teams Help Desk Social Engineering Proactive IT Vulnerabilities Managed Service Provider Paper Information Technology Troubleshooting National Security Telecommuting Managed IT Risk Management Online Shopping Technology Tips Yahoo Dark Data Computer Care Instagram Credit Cards Chromecast Television Financial Wireless Technology Encryption Gaming Console Thank You Employer Employee Relationship Vendor Management Video Games Congratulations Freedom of Information IaaS Hiring/Firing CrashOverride Synergy Autocorrect HaaS Trending Administrator Internet Exlporer Staffing Emoji Money Scheduling Samsung Regulation Leadership Scalability Budget Unified Threat Management

Mobile? Grab this Article!

QR-Code dieser Seite

Recent Comments

Mia Taylor Tip of the Week: How to Handle a Paper Jam Without Freaking Out
13 September 2019
You have posted a fantastic blog! This is the best blog, most concise step by step guide. Toshiba te...
Galvin Caldwell How and Why Cyber Crime is so Effective
06 September 2019
Cyber crime is the crime has the well recognized worth all over the world due to the lack of the sec...
Abby Aspinall Ransomware Increasingly Targets Android Devices
27 August 2019
Ransom ware has some targets that were among the all android devices that were good to be read over ...
JozephChristopher Google Wants You to Tweet Emojis at Them. Here’s Why
22 August 2019
As per my research with a dissertation writing services company, Google was working on this from a l...
Chris Greenwalty Most Noteworthy Data Breaches in 2019
21 August 2019
Since there are many threats that we are listening about data breach. You need to figure out the bes...