This is a follow-up to last weeks post on network downtime as several have asked “What is the cost of network downtime?” Based on industry surveys, the number we typically cite is $5,600 p/minute, which extrapolates to well over $300K p/hour (see Ensure Cost Balances Out With Risk in High-Availability Data Centers by Dave Cappuccio).
However, this is just an average and there is a large degree of variance, based on the characteristics of your business and environment (i.e., your vertical, risk tolerance etc). For example, this Avaya study indicates the range is from $140K to $540K p/hour. That said, why rely on averages when you can calculate the outage cost as it specifically relates to your organization? Check out this research for that:
Toolkit: Downtime Cost Calculator for Data Center Disaster Recovery Planning (Robert Naegle)
Summary: I&O leaders should understand the potential cost impact of their regional disaster profiles to better evaluate DRM programs and disaster recovery spending.
Q&A: How Much Does an Hour of Downtime Cost? (Bill Malik)
Summary: Companies that understand how to estimate the cost of an outage, in the for-profit and the not-for-profit domains, can better plan their disaster recovery investments.