The Cost of Downtime


The cost of downtime has skyrocketed by over 45% since the beginning of the decade. The total cost of an unplanned data center outage is estimated at $500K-$1M when accounting for lost revenues, wages, inventory, labor, other direct/indirect costs, and opportunity costs.   

It happens more than you think

Unfortunately, such outages are more common than often assumed. 400 businesses recently surveyed indicated they experience on average 5 IT downtime events per month and incur 27 hours of downtime per month. Making matters worse: data center outages are increasing in duration to over 90 minutes on average. 

The Cost of Downtime - Part II

Some businesses by their nature, size, and utilization of IT will incur significantly higher costs during the time of a typical outage. Telecom and brokerages, for example, are estimated to lose $3M and nearly $10M respectively from an outage of average duration. British Airways and Delta Airlines estimate that losses they incurred from outages due to critical power infrastructure failures were staggering at $130M and $150M respectively. 

The Hows and Whys of Downtime

According to a report published by the Ponemon Institute in January 2016, UPS failure is the number one cause of unplanned data center outages, accounting for 25% of all such events. A number of factors unfortunately can cause unreliability in an Uninterruptible Power Supply system including inferior technology, weak product quality, improper maintenance, poor service. Clearly, the risk of downtime can be impacted by the reliability of the Uninterruptible Power Supply that you choose to back up your business.