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IT Disaster Downtime Calculator

Determine the real costs of IT downtime

How Much Does Downtime Cost?

Understanding the cost of downtime is critical to both justifying and building a disaster recovery plan that is aligned with the needs of the business. This calculator will guide you through some of the most important factors to consider when quantifying the cost of an IT systems/infrastructure outage.

If a category doesn't apply to your organization, you may leave that field blank

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Outage Duration

How long is your typical outage?

The average is 5 hours

Revenue

If your business operates online, IT downtime almost definitely equates to lost revenue. To calculate the profit lost per hour of downtime you simply need to understand the annual revenue generated online, the average profit margin of the products offered online and how many hours per week are considered "high traffic" business hours for your online presence.

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(Average is 70 hours.)

Hourly Lost Profit
$0

Sales Opportunity

If you generate new business through your online presence, IT downtime will likely result in lost sales opportunities. By ascertaining your average revenue per customer (total revenue/total customers) and your customer acquisition rate, you can determine the potential lost profit from those missed sales opportunities.

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Hourly Lost Future Sales Profit
$0

Productivity

While businesses often believe lost revenue to be the biggest impact of downtime; that is typically not the case. There are very few businesses that can continue to operate without their IT systems and the cost of employees that are unable to produce is typically substantial. By factoring in employee costs (including benefits,) and determining the % of employees impacted by an outage, you can establish the cost of the lost productivity.

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(Average is $60,548.)

(Average is 40.)

Hourly Lost Employee Productivity
$0

Regulatory Fines for Data Loss

Many regulated industries (primarily finance and healthcare) are held to high standards as it pertains to the protection and retention of confidential data. Loss of any of this data can incur substantial fines if uncovered during a compliance audit. Below are a few of the government sponsored acts which may levy these types of fines. You may want to consider if your business is subject to these regulations when calculating the impact of downtime.

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(Maximum is $5,000,000.)

(Maximum is $250,000.)

(Maximum is $100,000.)

Total Regulatory Fines
$0

Contract Breach (Monthly Agreement)

If your business offers services to your Clients which depend upon your IT systems you likely offer contractual service level agreements (SLAs) to your Clients. Unplanned downtime in excess of a certain amount may result in breach of the contract in turn requiring remedies in the form of service credits or even worse termination of the contract. To calculate potential service level liabilities you can include your uptime guarantee and the service credit remedy in % of revenue.

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SLA Credits
0

After (X) Hours
0

Recovery Costs

Recovering from an unplanned outage also bears a significant cost. The resources and time that it takes to restore your systems to a usable state and validate the function of each of the services the systems provides must also be considered. You may also have additional costs paid to vendors or third parties in the event of an unforeseen event.

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(Average is 5.)

Total Recovery Costs
$0

Total Cost of Downtime

Based on the information you provided about your businesses revenue, customer acquisition, employee costs, regulatory risk, service level agreements and recovery costs the total cost of a 5 hour outage would be:

$0

Hourly Lost Profit: $0
Hourly Lost Future Sales Profit: $0
Hourly Lost Employee Productivity: $0
Total Regulatory Fines: $0
SLA Credits: $0
Total Recovery Costs: $0

This calculator is designed to help you determine the impact of downtime on your organization. It is not meant to identify every cost that you may incur as a result of downtime. There are many factors, including impacts, that cannot easily be measured, such as reputation, customer retention, employee satisfaction, and investor confidence.

The team at Latisys are not only here to help you in understanding how detrimental downtime can be to your business, but also to provide consultative expertise to design high availability solutions with the appropriate disaster recovery solutions to meet the objectives and budget for your organization.

Contact a solutions expert today!