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Calculating the Cost of Downtime

With so many potential problems that could cause IT downtime within small to medium-sized businesses (SMBs), it makes financial sense for SMBs to understand how much outages could cost them. Many SMBs don’t realize it, but the average small enterprise loses more than $55,000 in revenue due to IT failures each year.1 But these costs are unique to every business.

Knowing specifically how much downtime will cost an organization is critical for understanding what kind of investment in backup and disaster recovery makes sense for a business. Having a solid ballpark number allows these organizations to use cold, hard facts to weigh their economic tolerance for how much data and downtime they can afford to suffer, and to compare it against the investment they’ll choose to make in backup and disaster recovery systems.

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