What is the Real Cost of an Internet Outage?

From media to online brokerages firms, all are complaining about the high costs they had to pay due to network outages. For the media outlets, let’s say it was an estimated $90,000 per hour whereas for the brokerage firms, it was an estimated $6.48 million each hour the network was down due to an unexpected outage in the system.

Now, that is a lot of money lost, and recovering it does look like a possibility for businesses that suffer network outage on a frequent basis. Making up such a great loss in productivity seems inevitable.

The IT industry reported that they lose 127 million hours in employee productivity per person each year as a result of a faulty network system. For an IT company, that is devastating news to hear. However, that is only half of the shocking outcome of the cost of an internet outage. Keep reading more to find out.

Calculating the Shocking Costs

One hour of un-productivity due to a network outage can cause a business to lose progress on critical applications. They are set to lose $110,000 or more money each hour the network remains down. If your company’s networks remain down for 175 hours each year, your company will lose over $7 million per year. Since the cost of a network outage will be different for each company, you need to calculate the hours your network remains out of order for the whole twelve months.

One minute of an unexpected network outage is over $11,000, which is the most expensive cost to recover for companies. On average, the cost of an unexpected network outage most probably to go over $5,000 each incident.

 One year of network downtime can result in 87 hours lost per year in lost productivity. The network may be down only a few minutes each day, but at the end of the year, it will all add up. If companies do not get a proper network bandwidth system in place, they will face a stark future up head.

A future where they will be left counting their money and the hours they spend losing it when they could have been doubling it and it was all because of their failure to tend to their network in time. Even though at the time their IT personnel will be trying their best to repair the system to get it running again, but only to do it all over again when another network outage occurs. The only way out of this unpleasant scenario is to calculate the real cost of downtime, and then to do something about it.

Calculating the Real Cost of an Internet Outage

The chart below will explain how to calculate the cost of a network outage:

Revenue Lost	(GR/TH) x I x H
GR	Gross Yearly Revenue
TH	Total Yearly Business Hours
I	Percentage Impact
H	Number of Hours of Outage

Once you have the costs down, you need to equip your company with a network bandwidth system that is a champ at speed and a pro at handling network outages.