The real cost of downtime for a mid-market business
Downtime is easy to underestimate because most of its cost is hidden. A straightforward way to work out what an hour of outage actually costs your business.
Written by
Daniel Okafor
Virtual CIO
When systems go down, the obvious cost is the work that stops. But that visible number is usually the smallest part of the total. The real cost of downtime is a stack of consequences, most of which never appear on a single invoice, which is exactly why businesses under-invest in preventing it.
The costs you can see
Start with lost productivity: the number of people who cannot work, multiplied by their fully-loaded hourly cost, multiplied by the hours lost. Add directly lost revenue where an outage stops sales, such as a retailer whose tills are down during trading or a firm that misses a billable deadline. These are the figures most people stop at.
The costs you cannot
Beneath the visible costs sit the ones that do the lasting damage. There is the recovery effort itself, the overtime and supplier time to get back up. There is the knock-on work that piles up while systems are down and has to be cleared afterwards. And there is reputational cost, the customer who was let down and quietly takes their next order elsewhere, which never shows up as a line item but is often the largest number of all.
A useful exercise is to add these together for a single realistic incident. Most mid-market leaders are surprised by the total, and it reframes the cost of resilience as insurance rather than expense.
The point
You do not need to eliminate every risk, which is impossible, but you do need to know your number so you can make a rational decision about how much resilience to buy. Proactive monitoring, resilient connectivity, and tested recovery all cost money, but they cost far less than the outage they prevent. Bebco helps clients work out their downtime number and then spend sensibly against it.
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