What Is The Real Cost Of IT Downtime?

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Are you familiar with the phrase, "time is money?" Well, it's especially true in the business world. Every minute your system is down it ends up costing you money. But how much? And what can you do to prevent downtime from hurting your bottom line? In this blog post, we'll take a look at the real cost of IT downtime and some tips for keeping your system up and running.

The Price Of Lost Productivity

Every year, companies around the world lose billions of dollars due to lost productivity. With the average business in Canada losing $42,000/hour (1) this represents a sizable amount of revenue. Of course, this number will change depending on the size of your business, but we can all agree that the less downtime we experience, the better. In many cases, the loss of productivity can be attributed to a specific event, such as a major technical issue.?As a result, companies need to focus on creating an IT environment that is conducive to employee productivity and satisfaction. By doing so, they can help to improve morale and increase revenue levels.?

How Do I Prevent Lost Productivity??

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• Set a Regular Schedule for IT Maintenance – Patch, Update, and Upgrade:?IT downtime can be a costly affair for any business. A few minutes of downtime can lead to lost productivity, frustrated employees, and even lost customers. For this reason, it is essential to set a regular schedule for IT maintenance. By patching, updating, and upgrading systems on a regular basis, businesses can help to avoid IT downtime and keep their systems running smoothly. While IT maintenance can be time-consuming, the cost of downtime is often much higher. As such, businesses should make IT maintenance a priority in order to avoid costly disruptions.?
• Partner With An MSP: IT downtime can cost businesses big money. According to a recent survey, the average cost of IT downtime is $700 per minute. That's why it's so important for businesses to partner with a reliable managed service provider (MSP). An MSP can help reduce IT downtime by proactively monitoring your IT infrastructure and providing rapid response times in the event of an issue. In addition, an MSP can help you anticipate future IT needs and upgrade your IT infrastructure accordingly. By partnering with an MSP, you can help ensure that your business stays up and running - no matter what.?

• Train and Listen to Your Employees: IT downtime can be a major headache for businesses. Not only does it lead to lost productivity, but it can also result in lost revenue. In order to minimize the risk of IT downtime, businesses need to train their employees on best practices for IT management. This includes educating employees on how to properly use and care for IT equipment, as well as establishing clear protocols for reporting IT problems. Furthermore, businesses should listen to their employees when they raise IT concerns. By taking a proactive approach to employee training and feedback, businesses can help ensure that IT problems are quickly identified and addressed, minimizing the risk of downtime.?

• Conduct A Risk Audit? Many businesses rely heavily on their IT systems to operate. As a result, IT downtime can have a significant impact on productivity and profitability. IT departments must therefore ensure that their systems are reliable and resilient. One way to assess the risks associated with IT systems is to conduct a risk audit. This involves assessing the likelihood and impact of potential IT failures. The results of the audit can then be used to develop plans to reduce the impact of IT downtime. By conducting a risk audit, businesses can ensure that they are prepared for any eventuality

The Price Of Data Loss

Data loss is a serious problem that can have a significant financial impact on businesses and individuals. The cost of data recovery can be expensive, and the time required to recover lost data can cause significant disruptions to business operations. For example (2), even Small instances of data loss (approximately 100 lost or compromised records) can cost a business an average of $18,120 to $35,730, depending upon the size of the company and the value of the data.??

In addition, the loss of confidential or sensitive data can lead to legal and regulatory problems. As a result, it is important to take steps to protect your data and to ensure that you have a backup plan in place in case of data loss. There are a number of products and services available that can help you protect your data and minimize the cost of data loss which we will discuss below.?

How Do I Prevent Data Loss??

• Backup Regularly:?To start, it's important to create regular backups of all important files. This way, if the primary copy is lost or damaged, there will be a backup to fall back on. Second, it's a good idea to store backups in multiple locations, both on and offsite. This way, if one location is compromised, the others will still be safe. Finally, it's important to keep all software and hardware up to date, as outdated devices are more vulnerable to data loss. By following these simple tips, you can help protect your data from being lost or stolen.?
• Cloud Backups:??Whether you're a small business or an individual, it's important to perform regular cloud backups of your data. Cloud backups provide an additional layer of protection against data loss, making it easy to recover lost files in the event of a disaster. While it's possible to back up data locally, cloud backups offer several advantages. First, they're more reliable - if something happens to your local backup, you'll still have a copy of your data safely stored off-site. Second, they're more convenient - you can access your cloud backups from anywhere with an internet connection. Finally, they're more affordable - many cloud backup providers offer unlimited storage for a low monthly fee.???

The Cost Of System Repairs

IT downtime can be costly for any business. In addition to the direct costs of repairing the system, businesses also have to deal with the indirect costs associated with lost productivity and revenue. Hard drives fail and components break, and it's important to be aware of the risks. Every week (3) in America alone 140 thousand hard drive crashes happen due to either mechanical issues or human misuse- each with a different risk for losing your data!?IT downtime can also lead to customer satisfaction issues and damage to a company's reputation. As a result, it is important for businesses to plan for system repairs and have a solid IT disaster recovery plan in place. By taking these steps, businesses can minimize the cost of IT downtime and keep their operations running smoothly.?

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How Can I Prevent Repairs And Potential Data Loss??

When old hardware fails, it can take weeks or even months to find replacement parts. In the meantime, employees are left with little to no access to essential data and applications. This can lead to lost sales, missed opportunities, and frustrated customers. For this reason, it is recommended to replace your current hardware at least every three years or have replacement parts at the ready. Managed Service Providers have access to significant resources outside of regular businesses so partnering with one may greatly reduce the time it takes to find certain hardware. MSP's will also send you warnings when your hardware is becoming obsolete and becoming a burden for your employees to use. The hidden cost of IT downtime can be significant, but it is often overlooked in the budgeting process. As a result, businesses should be sure to factor in the cost of IT repairs when deciding whether to upgrade their hardware.

The Cost Of Overworking IT Staff

One of the main causes of IT downtime is overworking your IT Staff. When IT staff are working excessive hours, they are more likely to make mistakes and overlook important maintenance tasks. As a result, IT downtime can often be prevented by simply reducing the amount of overtime worked by IT staff. Although it may mean hiring additional staff or an MSP, the cost is often recoverable through increased productivity and reduced IT costs. In addition, IT downtime can also be prevented by investing in automation and monitoring tools that can reduce the need for manual intervention. By taking these steps, businesses can help to reduce the cost of IT downtime and improve their bottom line.

How Do I Prevent Overworking My IT Staff?

Using an MSP is also a very effective method of reducing the workload for your IT staff. A Managed Service Provider can help to minimize IT downtime by proactively monitoring your systems and providing prompt support when needed. This can help alleviate the burden on your IT staff and also prevent them from being overworked (which can lead to critical mistakes). In addition, a Managed Service Provider can often provide more comprehensive support than an in-house IT team, giving you peace of mind that your systems are in good hands. As a result, using a Managed Service Provider can help to reduce IT costs and ensure that your business runs smoothly.?

The Cost Of Missed Opportunities

IT downtime can be expensive for businesses, not only in terms of the direct cost of lost productivity but also in terms of the opportunity cost of missed opportunities. When systems are down, businesses are unable to take advantage of potential new revenue streams or market opportunities. They also miss out on the chance to improve efficiency and reduce costs. In today's fast-paced business environment, IT downtime can have a major impact on a company's bottom line. As a result, it is important for businesses to put measures in place to minimize the risk of IT failures. One way to do this is to invest in redundant systems and contingency planning. By taking steps to avoid IT downtime, businesses can protect their bottom line and ensure that they are able to take advantage of all available opportunities.?

How To Prevent Missed?Opportunities

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Missed opportunities and lost productivity have significant impacts on businesses. However, there are steps that businesses can take to prevent IT downtime from occurring. First, it is important to have a reliable IT infrastructure in place. This includes having redundant systems and backup power supplies in case of system failures. Second, businesses should develop clear IT policies and procedures, so that employees know what to do in case of an IT outage. Finally, businesses should invest in IT monitoring and management tools to help identify potential problems before they cause downtime. By taking these steps, businesses can minimize the risk of IT downtime and ensure that they are able to take advantage of every opportunity.

The Hidden Cost Of Old Hardware?

The cost of slow systems can be surprisingly high for any business. Slow workstations are estimated to drop productivity by 2.75% (or 13 minutes per day). This represents 5.5?days worth?in lost output every year!?The problem is exacerbated by old server equipment that can dramatically affect many users in parallel. As a result, the 1-year ROI for replacement of this type of system often comes out at 5X - 10 times what you would expect from an average investment! We're happy to discuss how best we might plan your evergreen/replacement budget with consideration given towards future needs like these.?

How Do I Prevent Sluggish Computers?

We recommend that our clients replace their PCs every three years. Of course, this timeline can vary depending on individual needs and budget constraints. But in general, a three-year replacement cycle is the best way to ensure that your hardware remains up-to-date and can keep pace with the latest software releases. It's also important to remember that PCs are not like cars; they don't appreciate in value over time. In fact, the opposite is true. A PC that is three years old is likely to be worth less than half of its original purchase price. As such, there's no financial benefit to hanging on to an old PC. So if your current PC is starting to feel sluggish, it's probably time for an upgrade!

In Conclusion

So, what is the real cost of IT downtime? It’s more than just the money you lose when your systems are down. The ramifications of even a short outage can be long-lasting and costly. But with some careful planning and preparation, you can help minimize the risk of an unexpected outage causing major damage to your business. Have you ever experienced IT downtime? How did it impact your bottom line? Let us know in the comments below!?

Maverick Gardner is a growing leader MSP (Managed Service Provider) in IT Consulting , Infrastructure . IT Services , Support and Maintenance Services , Cloud , Deployment and Procurement , Disaster Recovery, IT Outsourcing Services, and more!?

IT That thinks outside the box...

?Sources:?

(1) https://www.whipcord.com/blog/costs-of-it-disasters-and-how-a-data-center-can-help

(2) https://www.acronis.com/en-us/blog/posts/cost-of-data-loss/ ?

(3) https://www.novabackup.com/blog/top-6-data-loss-causes-and-top-10-preventions