How to Calculate Your Downtime Costs

The costs of being down equate to loss in productivity and quite simply loss to your bottom-line. Still, many companies have not quantified just how disastrous this can be.

To help put things in perspective we have created a formula for you to follow to understand the cost of downtime:

# of users affected  X  % effect on productivity  X  average salary/hr  X  duration of downtime

Additionally, if you have business critical applications, calculate using the following:

# of users affected  X  % effect on productivity  X  average profit/employee hour  X  duration of downtime

Or

# transactions/hr X  % of affected transactions  X  average profit/transaction X  duration of downtime

To predict the effect, estimate the probability that one of the risks will be realized, and estimate how long the downtime will be. The downtime costs can be predicted as:

% probability of event  X  estimated duration hours  X  cost per downtime hour

Calculating the costs of downtime will justify a cost-effective solution, avoiding detrimental effects to your business. Let's talk about how you can avoid the costs associated, and have a complete plan. Caisson has expertise in spearheading disaster recovery plans and would love to help get your business set up with this protection.  

If your business would like help in developing a solution that could avoid associated downtime costs contact us or simply call (206)420-0140.