What is the cost of IT downtime?

What is the cost of IT downtime?

Technology has radically transformed the way we live and work, so much so that almost everything we do is dependent on it. We rely on IT even more in the workplace, with nearly every industry utilizing technology to simplify and streamline business operations.

However, this also means that IT outages are bound to happen. Whether they’re caused by planned maintenance, internet service provider issues, hardware failure, or cyberattacks, subsequent IT downtime can affect your business in a range of ways. This can lead to loss of data, productivity, clients, and revenue, all of which could cause the total failure and collapse of the business.

Loss of data

One of the worst-case scenarios when it comes to IT outages and downtime is losing data. While having backups makes it easier to recover critical business data, the unexpected loss of access to IT systems can have unpredictable consequences. Sudden outages could damage or corrupt files, and IT security failures could make your business vulnerable to cyberattacks that could destroy or compromise your data. And if your company relies on data to make business decisions, losing even a portion of your data resources due to downtime can be a crippling blow to your operations.

Loss of productivity

When your IT systems are down or shut off, your employees won’t be able to access the applications, platforms, and other resources they need to perform their jobs. While having a backup and recovery strategy mitigates the risks of downtime, there are some business functions that can’t be accomplished offline. It’s therefore imperative that IT issues are resolved quickly to keep productivity from plummeting.

In addition, some employees may feel stressed if they can’t get any work done during downtime. At the same time, some may find it hard to refocus after a long time of inactivity. If you fail to swiftly and properly handle IT issues, you're also risking lowering your employees’ morale, which can cause even more problems for your business.

Loss of clients

If your employees can’t access your IT systems during downtime, they won’t be able to provide service or assistance to your customers. Especially if you operate primarily online, any disruption to your client-facing systems can significantly affect your customers’ experiences. And if clients can't avail of your products and services or even reach out for support, then you run the risk of losing business.

What’s troubling is that customers today expect and demand speedier capabilities. A research by Google reveals that the probability of a smartphone user leaving a site increases 90% if the page takes five seconds to load. In that case, even slow loading times can put your business on shaky ground — what more if your clients experience a complete loss of service.

Loss of revenue

In March 2015, an internal technical error cost Apple around $25 million in lost sales when the iTunes and App Stores were down for 12 hours. Meanwhile, in March 2019, Facebook experienced a 14-hour blackout that resulted in an estimated loss of $90 million. If losing access to critical IT systems causes substantial revenue loss for global organizations, imagine how catastrophic it could be for small businesses.

A 2014 study by industry analyst Gartner found that downtime costs an average of $5,600 per minute. This figure has since continued to rise, with a 2019 IBM study revealing that unplanned downtime costs around $9,000 per minute, which is 35% more than the cost of planned downtime.

This clearly shows that downtime is more than just downtime — it can drain your finances or even cause bankruptcy. That’s why it pays to be prepared, as even the shortest server overloads or network hitches could put you out of business.

We at Kortek Solutions can provide you with the support you need to keep your IT running smoothly at all times. Contact us today to learn how we can help you prevent IT failures and downtime.