Disaster recovery in practice: calculating the cost of an outage

Disaster Recovery - Calculating outageAlmost every disaster recovery article or blog begins with some version of, “nobody wants to think about a disaster happening to their organization.” Whether you think, “This will never happen to me,” or you just don’t know where to start when setting up a disaster recovery solution, disaster recovery is one of the most important technologies around.

Actually, planning for the different types of outages your company can experience and how they will ultimately affect the bottom line is a great way to see why developing a DR strategy and solution is so important.

There are many factors to consider when trying to calculate that cost. There are things that are tough to measure, like lost sleep for the IT department, but let’s just focus on the impacts that are actually measurable.

Employee impact: If your IT systems go out, how many of your employees will it affect? If you’re like most companies, this is a very high percentage of all the people at the organization.

Productivity impact: Some employees that are affected by an outage completely rely on those IT systems to be productive. App developers, for example, are really hamstrung during outages. Other employees can have some measure of productivity as they wait for systems to come back up. Salespeople, for example, can make calls or site visits, so only a percentage of their productivity is lost when systems go down.

Revenue impact: Beyond the employee and productivity costs, outages can create more direct impacts to revenue. How much revenue do you lose if your web store is down for 10 minutes, or if your POS systems fail?

It’s safe to say that, thinking in the abstract, most companies underestimate these costs significantly. To help you more accurately account for your outage risk, we developed a disaster recovery calculator. By entering some basic information about your company and its operations, including the points addressed above, the calculator gives you an estimate on how much an outage could cost your organization.

With the varied DR options available in the cloud and as a service, it’s a good bet that the cost of a comprehensive DR solution makes it a no-brainer compared to the cost and aggravation of an actual outage. Whether you choose a disaster recovery as a service solution, try to go it alone, or opt for a hybrid option, getting started down the DR road is one of the most important things a company can do to protect its future.


Click here to see how much an outage could cost your organization.

Download the infographic to see learn more about KeyInfo’s Disaster Recovery Solution


Drew Woods
Senior Marketing Communications Manager
Key Information Systems