It’s just common sense that when a business isn’t producing, it’s losing money. Downtime losses are expensive and can have lasting effects on a business.
Your cost of downtown can basically be calculated as:
Wages per hour x number of hours down = downtime cost
But that simplistic equation only takes into account direct labor costs. True downtime cost (TDC) also includes lost opportunities while production is halted, the resources needed to fix the cause of the downtime as well as damage to your business’ reputation and diminished customer confidence.
In its annual survey, the Information Technology Industry Council found 98% of businesses report a downtime cost of $100,000 an hour. Moreover, three in 10 of those businesses stated hourly downtime cost them between $1 and $5 million!
Whether you’re losing $100,000 an hour or $5 million, the importance of IT infrastructure has never been more obvious. When – not if – your network or applications fail, the impact can be devastating to your business. Some companies never recover from unplanned downtime and go out of business.
Readiness and prevention are the best ways to reduce your risk of unplanned downtime. As you consider the cost to reduce downtown, consider the advantages a Managed Services partner has over a break-fix service. The cost difference is significant.
How an MSP can reduce True Downtime Cost
When infrastructure fails, repair cost is included
Managed services contracts are all inclusive. Meaning, when you have a server go down, the labor to bring it back online is included in your monthly fee. With a break-fix service, the additional cost to repair a server, at roughly $170 an hour, is about $4,800. It takes about four hours to clean off a virus – add another $600 to your bill.
You can accurately budget for technology
Because repairs and other unexpected services are included, the cost of IT management is the same every month. No taking chances on whether or not that server will go down and add another (unplanned) $4,800 to IT expenses.
Regular maintenance and monitoring
A managed services partner continually reviews your infrastructure to make sure there is no suspicious activity or impaired functions. This reduces the number of disasters experienced and when there is a disruption, the time to recovery is faster.
And, ironically – less downtime!
Not only does the cost of downtime go down when you partner with an MSP but the incidents and duration of infrastructure failure are reduced. MSPs are routinely making improvements, upgrades and adjustments to ensure your system is healthy and secure which results in less downtime period. Learn more about reducing downtime and its related costs, contact us