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Cost of Downtime

Cost of Downtime

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When faced with a small business client who doesn�t understand why the
Server Status Tool is a "must have", I usually discuss a simple formula.


What is the client�s annual net income? ___________

How many business days is the client open each year? (usually about 250)
_____

How many hours are in a typical business day? (usually about 8) ______
So the daily cost of downtime = A/B and

The hourly cost of downtime = A/(BxC)

For a small business client with just US$1M in annual net income, downtime
costs about US$4,000 a business day or US$500 per business hour.


Electronic mail (email) systems are critical to supporting collaboration
throughout an enterprise. As one of the most popular platforms today,
Microsoft Exchange Server continues to be deployed to support growing email
communities, with users easily numbering in the 1000's. So, what happens
when Exchange email systems go down? You lose collaboration. You lose
productivity. And, in most cases, you lose money (a noted industry analyst
has pegged losses associated with messaging systems outages at up to $1,000
per minute).


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