In the world of information technology, you have to prepare for disasters that may cause downtime. These disasters won’t necessarily be natural disasters like earthquakes, hurricanes, and volcanic eruptions. They can be smaller issues that cause downtime, such as power surges or a phone line disturbance. If something happens to unexpectedly disrupt the transfer and storage of data on your computer systems, then the cause is a disaster.
It may seem a little overreactive to call such minor events a disaster. But when you consider the financial consequences of a minor disruption like this, then you can understand why it is a disaster.
How to Figure Out the Costs of Network and Data Disturbances
According to industry statistics, downtime is costing the average medium-sized business about 1% in lost income every year. These are businesses with between 100 and 1,000 workers. The amount of downtime incurred from a 1% loss in revenue is around 140 hours, which results in $867,000 in income losses.
As you can see, downtime hugely affects companies. It doesn’t even take that much downtime for a company to be impacted severely.
Just a moment of downtime can mean the following for your business:
- Lost or missing orders
- Reduced productivity
- Idle employees
- Lower cash flow
- Inability to send invoices
- Increased labor costs
- Bad customer service
- Inability to satisfy contracts with clients
If a small moment of downtime can cause all these data problems, then can you imagine what a huge disruption would do? When downtime occurs for a long time, your chance of recovering lost data is reduced.
According to a few studies, about 40% of businesses go under within two years following a major disaster. If you want to prevent this from happening to your business, then you must plan ahead for any possible downtime scenario. Learn about Dade2 data backup and recovery services that can keep your data safe whenever a disaster occurs.