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The business side of IT

What downtime really costs a business

The server was down for a day. The repair bill was the smallest part of what it cost.

1 min readExplainer

The short version

When systems go down, the costs go well beyond IT. Working them out helps decide how much protection is worth paying for.

The costs people count

  • The repair: technician time, parts, emergency shipping.

The costs people forget

  • Staff time. Everyone who cannot work, multiplied by how long, plus overtime to catch up.
  • Lost sales: orders not taken, calls not answered, appointments missed.
  • Late work: deadlines missed, penalties, delayed invoices and slower cash flow.
  • Clients: some will be understanding; some will quietly move to a competitor.
  • Re-entering data that was lost since the last backup.
  • Management attention pulled away from everything else.
  • After an attack: investigation, legal advice, notifying people and reputational damage.

A simple way to estimate it

For each important system, ask: if this were down for a full working day, what would happen? Roughly how many people would stop, what sales or work would be lost, and what would it take to recover? Write a rough figure next to each.

Why it is worth doing

Most businesses find that a day without their main systems costs far more than they assumed. That figure helps decide sensibly how much to spend on backups, a second internet line, newer equipment and security, and how quickly each system needs to come back.

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