Taking time out of regular business operations to evaluate your technology may seem like a waste of time, but do you really know how much it would cost your business if you experienced a loss in connectivity, your phone system went down, or a computer crashed? Let us caution you: don’t wait for something horrible to happen. Know what the potential cost of downtime is, and take appropriate preventive measures before it’s too late.
Recently a client contacted XPERTEK because their business internet connection was down. Some quick triage determined this outage caused their phone service and computers/systems to be non-functional for the entire location. Thankfully the XPERTEK team was able to provide a “fast fix” which restored their service within 15 minutes. While we are glad this was the case, the situation could have been much worse when we consider the associated costs.
What is the real cost of downtime due to old equipment or system failures?
In this example our customer books nearly $400,000 in orders per day. Wow! Even more important, this customer is completely dependent upon two customer interfacing systems functioning to complete this order volume. Assuming this customer takes orders during an 8 hour span each workday, we can simply calculate that each hour of system uptime is worth an average of $50,000 to the business.
After completing the necessary work to salvage this customer situation XPERTEK launched into a comprehensive analysis and made several recommendations to the customer that would improve system redundancy. Net cost: $18,000.
Based on the formula above, it takes only 0.36 hours of productivity loss prevention to justify the $18,000 investment. Obviously this was not a difficult decision to make. The customer immediately decided to build redundancy into the system, eliminating any future threats of downtime.
Consider the cost of downtime associated with outdated equipment. An unreliable phone system that goes down frequently could prevent you from receiving calls from customers or making outbound sales calls. How secure is your data and what would the impact be if you lost it? Would your business even be able to recover?
Don’t wait for a crisis to justify your actions! Calculate the cost of your downtime today and take action. In most cases the investment is quickly justified. “It is much smarter to know it on paper now and prevent downtime instead of “feeling the pain” of a crisis later,” Perry Brulotte, XPERTEK IT.
Not sure where to start? Schedule your small business technology evaluation with XPERTEK today.