A Timeline of Downtime

To succeed in today’s always-on business environment, organizations need uninterrupted access to mission-critical apps and data. However, in the past 12 months, businesses experienced an average of 5 to 10 unplanned outages — each lasting an average of 65 minutes. So just how much does all that downtime cost?

1 Minute

According to Gartner, the average cost of IT downtime is $5,600 per minute.ii 

As Much As

Downtime, at the low end, can cost as much as $140,000 per hour, $300,000 per hour on average, and as much as $540,000 per hour at the higher end.ii

1 Hour

2 Hours

Hours of Downtime

The average business can only tolerate 2 hours of downtime for high priority apps.iv

Hours of Downtime

The average business can only tolerate 3 hours of downtime for normal-production apps.v

3 Hours

8 Hours

of surveyed SMBs experienced 8 or more hours of downtime due to a severe security breach in the past year.vi

According to the National Cyber Security Alliance, 60% of SMBs who experience a data breach go out of business within 6 months.vii

6 Months

Minute One

According to Gartner, the average cost of IT downtime is $5,600 per minute

As Much As

According to Gartner, the average cost of IT downtime is $5,600 per minute. 

1 Hour

Two Hours

Hours
of Downtime

The average business can only tolerate 2 hours of downtime for high priority apps.

Hours
of Downtime

The average business can only tolerate 2 hours of downtime for normal-production apps.

3 Hours

8 Hours

of surveyed SMBs experienced 8 or more hours of downtime due to a severe security breach in the past year. 

According to the National Cyber Security Alliance, 60% of SMBs who experience a data breach go out of business within 6 months. 

6 Months

1 Minute

According to Gartner, the average cost of IT downtime is $5,600 per minute.ii

1 Hour

As Much As

Downtime, at the low end, can cost as much as $140,000 per hour, $300,000 per hour on average, and as much as $540,000 per hour at the higher end.ii

2 Hours

Hours of
Downtime

The average business can only tolerate 2 hours of downtime for high priority apps.iv

3 Hours

Hours of
Downtime

The average business can only tolerate 3 hours of downtime for normal-production apps.v

8 Hours

of surveyed SMBs experienced 8 or more hours of downtime due to a severe security breach in the past year.vi

6 Months

According to the National Cyber Security Alliance, 60% of SMBs who experience a data breach go out of business within 6 months.vii

12 Months

The average small business can expect to lose $100,000 worth of revenue in unplanned downtime every year.viii

Calculating the Cost

In addition to the pain of financial loss due to downtime, there are also intrinsic costs to consider. When surveyed about the impact of an outage, 54% of businesses reported loss of customer confidence, 38% reported damage to brand integrity, and 37% reported loss of employee confidence.

Here’s how downtime costs more than dollars:

Monetary Cost (lost productivity + lost sales)

Loss of Customer Trust

Damage to Brand / Reputation

Weakened Employee Morale

Reduced Stock Price / Business Value

Subject to Legal Action

Possibility of Compliance Fines / Penalties

There’s no way to completely prevent the possibility of downtime. There will always be uncontrollable events that can bring business to a halt. However, you CAN mitigate the impact of downtime with disaster recovery solutions that recover and restore data and applications to get your clients back up and running as quickly as possible.

Not sure where to start with disaster recovery solutions for your tech stack?

We can help!

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Sources  > 

Veeam, 2019 Cloud Data Management Report 
  https://www.veeam.com/cloud-data-management-report-2019_wp.pdf

Gartner, 2014, The Cost of Downtime
  https://blogs.gartner.com/andrew-lerner/2014/07/16/the-cost-of-downtime/

Cisco, Small and Mighty: How Small and Midmarket Businesses Can Fortify their Defenses Against Today’s Threats
  https://www.cisco.com/c/dam/en/us/products/collateral/security/small-mighty-threat.pdf

Small Business Trends, 2018, Cyber Security Statistics: Numbers Small Businesses Need to Know 
  https://smallbiztrends.com/2017/01/cyber-security-statistics-small-business.html

Aberdeen, 2016, Downtime is Money: How Downtime Depresses Small Business Revenue
  https://www.aberdeen.com/techpro-essentials/downtime-is-money/