Despite Backup and Disaster Recovery (BDR) solutions continuously becoming more affordable for small- and medium-sized companies, most organizations still put it off. We recently wrote about what IT disasters really mean. It’s not the natural catastrophic event wiping out a city that everyone imagines. It’s the little things – like daily human error or out-of-date software – that bring companies to their knees.

Waiting for disaster to strike can cost your company up to 30x more than investing in BDR ahead of time. And, shockingly, almost 40% of businesses do not have a Disaster Recovery Plan in place.

Let’s just do some math.

A typical BDR solution can run about $350 a month or $4,200 a year for an average small company. (Prices vary.)

Without a BDR plan, here’s how the recovery costs break down if an internal server has a catastrophic malfunction (could be caused for a variety of reasons):

  • Typical costs to replace server:
    • Hardware outlay: $15,000
    • Labor expense: $8,000
    • Total cost: $23,000
  • Downtime costs while server is on the fritz:
    • 30 employees
    • Bill at $100 an hour
    • Down for one week (average time to replace server)
    • 30X $100 X 40 hours = $120,000 in lost productivity
  • Total cost to company = $143,000

Now that’s a very unlikely and severe scenario. Most companies are looking at a day of downtime and labor, which can cost about $50,000 in productivity loss, plus the charge of an emergency IT project to get back up and running.

But downtime costs and capital expenditures aren’t the only losses to keep in mind if your company is waiting until disaster strikes to cover IT losses.

Downtime – inevitable during any IT emergency – can cause very serious damage to your brand reputation, and those losses can be lost and gone forever. Or, you could find yourself investing in expensive marketing brand reputation recovery services.

There are three things our clients really care about: reliability, recoverability and security. Each of these are involved in a solid BDR plan, and without any one of them your company is at risk of serious downtime recovery expenses.

You can contact us at (952) 258-8200 to learn more about our data backups, business continuity and security solutions.