The Business Case for Preparedness
Minimizing Costs Due to IT Downtime
May 23, 2008 11:40 PM
The loss of important business data can result in significant losses in terms of both existing and future business as well as liabilities to customers, investors and legal authorities. IT downtime costs can range from $1 million to over $6 million annually.
Source: "Data Protection and Disaster Recovery", Walt Hinton, Managed Storage International, 2000
* The white paper argues that loss of critical data due to any crises can be a costly affair for companies.
* The costs associated with losing important data can include the potential loss of existing and new business, the potential loss of customer confidence, and potential liabilities to customers and investors. Failure to produce certain data in response to an audit or subpoena may also carry legal consequences."
* Sample of Hourly Costs of Downtime by industry:
o Brokerage Operations $6,450,000
o Energy $2,817,846
o Financial Institutions $1,495,134
o Information Technology $1,344,461
o Insurance $1,202,444
o Pharmaceuticals $1,082,252
(Hourly costs of downtime experienced by each industry given on pg. 6 of the report)
* "...but remember that vulnerability to data unavailability and loss isn't just limited to immediate monetary impact: it also includes such things as loss of customer confidence, liability, and lost current and future business."