Unplanned Server Downtime Cost Calculator


In this video, we’re showcasing some of the features and benefits of Storagepipe’s newly redesigned Downtime Cost Calculator.


Hello and welcome to our YouTube channel. Some of you may notice that this video is a bit different than our regular videos. It’s a little bit more intimate, a little bit more unscripted, a little bit more shooting from the hip. And that’s because this is a special video for us. We’ve been listening to our customers and some of the questions they have been asking us, and we’ve put together a special tool that we hope will help some of you.

Customers have been coming to us saying, “Yes, we know that data protection is important. We know that disaster planning is important but how do we quantify this for other people who are decision makers in the IT process?”

So that’s why we’ve put together the downtime cost calculator. And if you go to downtimecost.com, you too can check out our downtime cost calculator. You will see exactly what I’m seeing.

So just to put this into a social context, the world has changed a lot over the last 20 years.

Customers don’t want to call a 1-800 number for service anymore. They demand instant service through a self-service portal online.

Businesses in the manufacturing sector, everything is all about Just-in-Time or JIT. Your business is part of an ecosystem of suppliers. And if any one of those suppliers doesn’t meet their obligations, then it causes bottlenecks all over the ecosystem. And that can have serious effects on your business… and on other businesses that depend on you.

And – in the business world in general – what used to be a 9:00 to 5:00 business world is now a 24/7 business world.

This is because of multiple factors. Thanks to globalization, business happens all over the world. We’ve also go the internet. We’ve got mobile computing… people are working from the road… from their mobile devices.

And when something does go wrong, the way that the world responds to downtime is very different. Before your PR department had a lot of control over the messaging that went out to the media.

Today the media is no longer in control. Today it’s all about the social media, the Facebook, the Twitter. When something goes wrong, public opinion gets – out and there’s no filter. There’s nothing you can do. You just have to be responsive, and ready to react at a moment’s notice.

That’s why it’s important to put a lot of thought into your disaster recovery and business continuity planning.

And that’s why we’ve created this downtime calculator that you see today. The downtime calculator is a very simple tool.

All you do is you input a little bit of data.

So, for example, in the event that your IT systems go down… there’s a flood that destroys your datacenter, your computers are gone, etc… how fast can you get up and running again? How will this affect your business?

All you need to do is you enter some basic data. For example your annual revenues.

Don’t worry about entering real data in there, because it’s all anonymous. We don’t track any of this data. We don’t associate it with any personal information. So go ahead and play around. Put in real numbers, fake numbers, whatever! We have no way of storing this information.

Put in your annual revenues, and imagine – in the event of unplanned downtime – how much would this affect your annual revenues?

And don’t just think of sales as in your minute-to-minute sales… but also think of the lifetime value of your customers. If a customer is depending on you, they will spend with you every week for many, many years. But if you fail to make them happy, they might go to a competitor. And they’ll take that recurring business to your competition with them. That’s something to factor into your annual revenues, and the impact that the downtime will have to your revenues.

Depending on the kind of company that you have, if it’s an online business or a very technology-dependent business, then the downtime of your IT systems might have a 100 percent effect, right? Or if it’s a service business – where you’ve got manual or paper-based systems and it’s not that important that your servers are always running 24/7 – then maybe it will only impact at 60 percent.

And then you have to worry about lost productivity.

Here, you put in the number of employees that would be affected by a server outage. And also, what’s the employee cost per hour. When you’re factoring in the employee cost per hour, don’t just think about their salaries. Think about other costs involved in having employees be unproductive, sit around, they can’t do their jobs. That’s something to keep in mind as well.

And finally – just as with the lost sales – you have the slider bar that tells you to what degree an IT outage is going to impact your company, from a productivity perspective.

Once you’ve done that, you hit the panic button, and you will see lots of useful information come up on the screen… not just in terms of hard financial numbers… objective numbers that you can use… but also in terms of qualitative actionable data that you can present to other people who are involved in the disaster planning process. This allows you to present your arguments for why IT should take a certain direction with this data protection in business continuity.

Have a look at the downtime cost calculator. Once again it’s downtimecost.com.

Check it out. Let us know what you think in the comments. If you like our downtime cost calculator, share it with your friends, like it, subscribe to our channel and thank you very much. Take care.

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