How much does computer downtime cost businesses?
A survey of small business owners shows that the majority of them (65%) think a day of computer outage would cost them about $500. In reality, computer-related downtime is much more costly than that.
Plenty of things can cause downtime and can happen at any time. Computer or network failure, a cyberattack or even a user error can cause catastrophic damage to a company. Downtime can result in not just a loss of productivity for employees, but you can lose important data and it can send your company scrambling to make up for lost time. If it affects your customers, you can probably expect to lose some of them too, in addition to taking a hit to your company's reputation, making it harder to get new customers. And then there's the cost of repairing or replacing your equipment.
Many small business owners are rather clueless about how susceptible they are to computer downtime and how much it costs their business. In fact, 87% of small business owners don't think downtime is anything major to worry about. The reality is mush more stark, however. 20% report having a major IT incident every five years or so. Even worse, 40% of those don't recover and will actually go under as a result.
So what is the actual cost of downtime when a company experiences IT problems? There's no single answer, since every company is different. One example is Amazon, a huge company who experienced two hours of downtime in 2008. That ended up costing them $30,000 a minute. Amazon is even bigger now, and a similar experience would probably cost them more along the lines of $100,000 a minute. A different survey from last year revealed that 200 large companies lose $26.5 billion in revenue annually because of IT problems.
Those are large companies who can probably afford to absorb some damage. IT downtime can cripple or even kill small and mid-size companies. Do you think your company can afford it? I'll answer it for you: No. So what are you doing to ensure your company stays safe and is able to recover from an IT outage? Call us at 919-355-5545 for a free IT consultation (valued at $997).