By the Numbers: A Look at The Cost of Downtime

Written by Beth Wallace. Posted in Business

If your business has never experienced a major computer problem, then it’s easy to underestimate just how damaging downtime can be. This conclusion can be drawn from a recent survey of small business owners, where 65% estimated they would only lose $500 if their company’s network went down for a day. In reality, downtime is much more costly than $500.

The same study goes on to find that 20% of small businesses have a major IT accident resulting in downtime every five years; and of the small businesses that are hit with a major disaster, 40% will close for good. All of these statistics show us the danger of underestimating downtime. 87% of small business owners that believe they are somehow immune to a catastrophic disaster.

An IT disaster resulting in costly downtown and data loss can strike a business of any size and come from multiple sources that are uncontrollable, like hardware failure, a hacker attack, human error, and more. Additionally, downtime is more costly than what many would suppose it to be because it does more than result in a loss of revenue. Downtime will hurt your bottom line in other ways like the loss of productivity, damage control to make up for the lost time, repair expenses, and more.

Take for example a downtime situation experienced by Amazon for only two hours in June of 2008, it’s estimated that Amazon lost $30,000 a minute during this outage. Nowadays, Amazon’s revenues are three times what they were in 2008, which would put them close to losing $100k a minute if they experienced downtime today.

In another recent study, this one by CA Technologies, 200 companies across North America and Europe were looked at in order to determine the cost of downtime incurred from an IT outage. Of these 200 (large) companies, it was discovered that $26.5 billion in revenue was lost each year, which comes out to a $150,000 annual hit for each business. This study also discovered that IT outages are frequent, lengthy, and can do more than cause monetary damage. A loss incurred from downtime also hurts a company’s reputation, the morale of the staff, and customer loyalty.

The cost of downtime will be different for every business. One thing every company has in common is that experiencing downtime caused by an IT outage will put an organization at serious risk of going out of business. Here are two formulas you can use to calculate the cost of downtime for your business:

The first downtime formula determines loss of sales:
Yearly Revenue/Business Hours x IT Impact to Sales % = Lost Sales

The second downtime formula factors loss of employee productivity:
Employees Affected x Average Employee Cost Per Hour x Average % Affected by IT = Lost Productivity

After determining the cost of downtime for your company, you may be shocked to see how expensive it would be to just lose one day of business to an IT problem. If you don’t have a downtime solution in place because you didn’t see the need, then you’re not alone. In the CA Technologies study, it was revealed that “56% of enterprises in North America and 30% in Europe don’t have a formal and comprehensive disaster recovery policy.”

Downtime can be devastating to a business. The best way to prevent downtime is to have a reliable business continuity plan in place that will keep your operations up and running, even in the event of a major disaster. COMPANYNAME can protect your business from downtime with our Backup and Disaster Recovery (BDR) solution. BDR continuously backs up your data throughout the workday to an offsite data center. BDR can also virtualize your network in the event of a disaster, meaning that your business won’t have to suffer through one expensive minute of downtime!

To learn more about BDR, and to have COMPANYNAME help your organization draw up its own business continuity plan, call us today at PHONENUMBER.

When Outsourcing is a Good Thing

Written by Beth Wallace. Posted in Business

Outsourcing jobs is never a safe topic to bring up in a group discussion. If you mention “outsourcing,” be prepared to hear nationalistic rhetoric followed by, “They took our jobs!” When outsourcing is done right, it can save your business money, and when you outsource IT services with us, you can rest easy knowing where the work is going.

How Outsourcing with COMPANYNAME is Different
There are major differences between outsourcing an entire factor to a small island in South East Asia, versus having your company’s IT responsibilities outsourced to COMPANYNAME. One difference is regarding geography. We are a local business, just like you, which means that all taxes from the sale will go to help AREASERVED. Also, our technicians live in the area and they too have families and support the local economy.

Another difference between outsourcing to a third world country and good outsourcing with COMPANYNAME is oversight. When a job is outsourced, the supervision of the job will be handed off to someone else who you may not have met. With COMPANYNAME handling your IT work, you can still give your input and direction. You will know exactly what we did, how long it took, and the quality of our work because we make strong efforts to keep you in the loop.

Outsourced IT Work with Accessible Service
When outsourcing your IT services with COMPANYNAME, it will still feel like you have a technology expert in your office because we work hard at maintaining relationships with our clients. This means we are easy to get ahold of, and we can be wherever you need us to be at the drop of a hat, or at the drop of a server that is now in need of repair.

COMPANYNAME has designed our outsourcing IT service to make it easy for you or any of your employees to contact us with a problem. One way we do this is by making IT service available as an all-you-can-eat contracted service, instead of charging you by the hour. This approach means that your employees won’t have to hesitate about calling us for help and worry about being responsible for a big repair bill, meanwhile, the problem only deteriorates, costing the company more money.

We believe an outsourced IT technician should be just as available to help with your technology needs as an onsite technician. We would even go so far as to say that COMPANYNAME is more accessible than an onsite technician because we will never be unavailable due to sick days and vacations; and as Murphy’s Law dictates, when you’re onsite IT technician is out sick, this is when your system will crash.

What about the jobs? Is COMPANYNAME taking the jobs of hard working in-house IT technicians? Not necessarily. We like to think of our approach to IT services as a help to your current IT department, not a job killer. If your IT staff is feeling overwhelmed with their workload, or they’re complaining about all the minor tasks they have to do, such as updates and antivirus scans, then COMPANYNAME can complement your IT department by freeing them up to do more work that requires their expertise.

The biggest benefit to outsourcing is that you’re able to do the same work for less money. This is the only thing that outsourcing your IT with COMPANYNAME, and outsourcing jobs overseas have in common. By outsourcing your IT needs to COMPANYNAME, we will save you time from having to do it yourself and money from having to hire a new in-house technician. Call COMPANYNAME at PHONENUMBER to learn more!

Get the Internet Speed that You are Paying For

Written by Beth Wallace. Posted in Business

Which is worst, fingernails scraping down a chalkboard or slow internet? A person who would answer the former has likely never experienced internet speeds in excess of 1 Mbps. It is a proven fact that faster is better. Before you decide to complain to your Internet Service Provider (ISP) or even switch providers, make sure that you are informed about what your internet speed is and should be.

Testing the speed at which your computer downloads and uploads data from the internet should be a task of routine maintenance. ISPs have you sign a contract that will determine how much bandwidth you will be using. According to studies by the Federal Communications Commission (FCC), the majority of ISPs are providing speeds close to the ones they have promised in the contract. But, how can you know for sure that you are getting what you pay for?

Speedtest.net makes testing your internet speed simple. The free service is designed to test the speed at which you download and upload files from the internet. After determining your ISP’s location, it runs a quick test of download and upload speeds.

Before you start the speed test at Speedtest.net, you will need to know what speed of service you’ve agreed upon in your contract with your ISP. Once calculated, your connection speed is displayed on your screen in megabits per second (mbps). With the services provided by Speedtest.net, users are given the ability to compare data with the global average, store your previous results and more.

Speed Test will give three pieces of information: ‘download speed’, ‘upload speed’, and the ‘ping’. Ping is the amount of time it takes for data to go from the ISP to your computer and back to the ISP. These numbers will fluctuate depending on factors such as: What other downloads or uploads you have running concurrently, as well as the time of day you run the test. An average of three tests or so should give you a good idea if what you pay for is what you’re getting.

For a small and medium-sized business (SMB), there are other variables to consider in regards to internet speed. COMPANYNAME can offer valuable solutions to keep your company’s internet running at a maximum speed. If your internet, or even your PC, is not running at the speeds you desire, then call COMPANYNAME at PHONENUMBER and let us apply our tested IT best practices to help you get the most out of your technology.

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