How to Calculate Your IT Downtime Costs

thumb_7a6409a35f8223f856dc99651cb33cb1Does it sometimes feel that business is going well, yet your bottom line is taking a hit? If time is money, then downtime is anti-money, and downtime may be your biggest budget buster. To help you determine exactly how much your IT downtime is costing you, we have two mathematical formulas you can apply to your business.

The first downtime formula determines loss of sales:
Yearly Revenue/Business Hours x IT Impact to Sales % = Lost Sales

The second downtime formula factors loss of employee productivity:
Employees Affected x Average Employee Cost Per Hour x Average % Affected by IT = Lost Productivity

Both of these equations can be used to objectively quantify the cost associated with unplanned downtime caused by IT Problems. Examples of IT problems can include minor issues, like applications taking too long to load, and major issues, like having to spend time waiting for hardware repairs. All of these IT downtime issues can add up over time, and then there is the worst-case scenario downtime issue to consider: If your business experienced a total loss, like a fire or a flood, then how much time would it take to recover?

The good news about IT downtime is that it is controllable. In fact, taking the time to keep your computers running smoothly will eliminate bigger downtime issues like computer crashes. This is the difference between a proactive and reactive approach to IT problems. PACE Technical Services specializes in proactively maintaining your computers, by remotely taking care of the small problems that cause major downtime. Having PACE Technical Services monitor your computers is the best solution to combat downtime, primarily because this preventive service cannot be factored into the downtime formula.

If the unthinkable happens and your business is rocked with a disaster, then PACE Technical Services also offers a backup disaster and recovery solution (BDR). Your data is archived offsite; this is the ideal solution for saving your data for both backup and security purposes. The BDR also has the capability to host your entire server if it goes down; this minimizes downtime because you can continue to work while your hardware is being repaired.

Now that you know the true cost of IT downtime, you can make a well-informed decision when budgeting for your IT needs. Compared to the cost of downtime, IT monitoring service and BDR solution is a bargain. The combination of our IT monitoring service and BDR solution is the ultimate defense and offense against downtime. Book a meeting or Call us at 905.763.7896, we will be happy to go over the IT needs of your business and find ways to maximize your profitable up time. Your Phone + Our Phone + Our Expertise = Time + Money for You!

Share on facebook
Share on google
Share on twitter
Share on linkedin

The PACE Difference – We’re in this business to help other small businesses grow and move forward. It’s as simple as that.

Toronto, Ontario’s IT Experts. Nestled smack in the middle of the thriving Technology sector of Markham, Ontario, PACE Technical Services Inc. is comprised of a dynamic group of professionals dedicated to bringing Fortune 500 I.T. solutions to small and mid-sized businesses in the Greater Toronto Area.


475 Cochrane Drive. Unit 4

Markham, Ontario L3R 9R5

Phone: (905) 763-7896