How Downtime can Crush your Business

Did you know that 3 out of 4 SMBs fail the disaster recovery preparedness?According to the National Archives and Records Administration, only 10% of companies stay in business after experiencing 7 days of data center downtime. A third of all organizations have had some kind of disaster affecting their business in the last 5-6 years, such as power outage, IT hardware, software, or network failures, human error or sabotage, hurricanes, or floods.

You may know about IT downtimes, as your organization may have experienced such a problem, but do you really know wide does their impact on businesses go?

Are you sure your IT Infrastructure is in good hands?  Speak with IT experts at powersolution.com, your New Jersey and New York IT Managed Service Provider about preventing IT downtimes and the damage to your business they can cause. 

Call us (855) 551-7760 x 311 or Request a Consultation today.

One of the biggest disadvantages to downtime is lost productivity because workers cannot do their jobs without IT systems up and running. If your organization still relies on backup methods of the past, such as NAS device, tape, or disk backup method that are no longer sufficient, your business data is getting even more vulnerable to internal and external dangers.
There is no doubt that computer network downtime is directly linked to financial losses.Since most companies rely heavily on IT, system downtimes can affect the productivity of almost everyone in the organization. Your business revenue and increased costs are correlated with IT downtime.  Many individuals and organizations as a whole are not aware of how much they depend on technology today.  IT downtimes can keep put a stop to servicing your clients, especially when employees are not able to access critical business and client data. That can impact immediate sales and billing cycle, as well as long-term projects awaiting completion. This directly affects a business’s operations, productivity, and ultimately profitability.

Costs associated with IT downtimes

There are many different aspects affected by downtime, and some cannot be fully measured in dollar value, such as a decrease in company morale, but here are some of the costs that can directly affect your bottom line.

Direct Costs:

• Lost billable time
• Lost employee wages
• Lost transaction revenue
• Lost inventory
• PR and marketing costs
• Legal penalties for failure to deliver on SLAs

Indirect Costs:

• Lost business opportunities
• Decrease in stock value
• Loss of trust from customers and partners
• Brand damage
• Bad publicity/press
• Decrease in employee morale
• A hit to company culture of excellence

Reputation Risk and Compliance Liability

When IT infrastructure issues result in downtime, it can lead to drastic consequences for organizations that must follow strict regulatory compliance standards, such as HIPAA for healthcare organizations. A lot of practices and organizations react to IT failure by moving data to a mobile device or public cloud service, not realizing that they further put their critical data at risk.

Downtime also can leave IT infrastructure vulnerable to breaches and theft of private and sensitive data such as patient information, customer files, and confidential business data. And don’t forget about the reputation of your organization. Downtime can lead to lost customer trust and confidence in your ability to do business. As result, you may even lose your customers to the competition.

You need professional Managed IT, Data Backup, Disaster Recovery, and Business Continuity Services company on your side

We can help you every step of the way to make sure your data is secure, and your business continuity is protected. Let’s start with our Computer Network Assessment service to help you get a real handle on where your network is today, and how to get it to the next level. Call us (855) 551-7760 x 311 or Request a Consultation today.