IT Downtime Calculator

Nobody likes losing money. This is especially true when it comes to unforeseen expenses such as experiencing downtime. A few hours of downtime can have a much more significant effect on the bottom line than you may think.

There are many factors to consider: lost employee productivity and lost customer goodwill are the most significant downtime costs for most businesses. The combination of these costs can really hurt the bottom line, so it’s important to know how downtime can affect your company.

As mentioned above, when it comes to downtime, employees’ time is not the only factor that leads to revenue loss. Less obvious effects could be felt. One of these is customer goodwill. Let’s say 100 customers were affected by the downtime of your billing system. 90% of these customers may not care, but those remaining 10 customers may no longer want to do business with you because they question the security of your billing system. Every company will lose customers at some point, but losing them to something like downtime is unnecessary.

Calculation:

Employee Productivity Loss = Employee Salary per Hour * (Hours of Downtime + Catchup Time) * # of Employees * # Times Down per Year)

Example:

Employee Loss = ($24 * (4 + 6) * 12) * 2.5= $4320 Loss

This is just taking into account the loss of productivity for your employees. Unfortunately, there are many more ramifications that system downtime has, such as:

Customer Goodwill
Employee Satisfaction
Money to getting System Back Up

Clearly, a company can lose a very significant amount of money and waste hundreds of hours if they are experiencing downtime. While you can always hire a more robust IT staff, a more affordable and very reliable option is to purchase IT management services from a company that specializes in keeping your systems up. Stop throwing money away, and find a solution that works best for you.