What is the cost of downtime?
What is the cost of downtime? Good question right!It is amazing how many small and mid-sized businesses do not have a solid plan for preventing “bad things” from happening on their computer networks. Some of these “bad things” (server/desktop crashes, firewall crashes, router/switch malfunctions) can take down an entire network for many, many hours. Our team at Northern Technology Services hopes these major issues don’t happen frequently, and although lets be honest, most of you as business owners do not think that they will happen at all.
Now while that fits the BROAD DESCRIPTION of downtime, there is actually a more refined version that you may not know is already effecting your day to day operations!
Does “downtime” occur only when you are down?Not really, in fact, this is only a small part of downtime. When talking about your computer network, downtime is anytime when your employees’ performance is negatively affected by your technology.
When your employees wait for applications to load on their desktops … this is downtime. When employees wait for slow web pages to load on their workstations … this is downtime. When employees wait for pages to print on the printer … this is downtime. When employees recreate deleted and missing documents … this is downtime.
When you start to track how much of this “hidden downtime” actually occurs in a week/month/year … then you can see real costs of downtime and how they are effecting your business.
So, what is the cost of this “hidden downtime”?Let’s begin with an average employee wage of $35,000 / year. Assuming this employee takes two weeks of vacation in a year, they make $17.50 per hour. If during a typical hour at work their workstation is a little slow (causing them to “wait” a couple of minutes) this translates to 16 minutes each day or 1 hour and 20 minutes over the course of the week. The weekly cost of these little minutes would be $23.28 and over the course of a year this would be $1,210.56.
Obviously, this does not include those times when there is actually down-and-out time when the server or other network resources have actually crashed and are not usable.A company of 10 employees could lose over $12,000 or more due to these little “wasted” minutes each year – OUCH!
3 employees @ $20,000 / yr = $ 60,000 4 employees @ $35,000 / yr = $140,000 2 employees @ $50,000 / yr = $100,000 1 owner @ $80,000 / yr = $ 80,000
** Total payroll of $380,000 / year.