How to calculate losses from server downtime?

Server downtime in the office is not just a technical issue. It can lead to serious financial and reputational damages for any business. Many companies underestimate these risks - sometimes due to lack of information, and sometimes because of the illusion that "it can’t happen here." The truth is, no server is immune to hardware failure, power outage, security breach, or human error.

In the following lines, we’ll look at how you can assess potential losses and, most importantly—how to reduce the risk of such incidents with the help of professional data center services.

Identify potential sources of loss

If your server supports the database for your online store, downtime means your customers won’t be able to shop. If your employees work through an internal ERP system, they’ll lose access to resources, client contacts, and delivery data. If your sales team sends and receives numerous emails each day, there will be delays in offers, unaccepted orders, unfulfilled commitments, and more. If you process sensitive data, every minute of delay can lead to serious legal and reputational consequences.

Typical losses from server downtime are most often related to:

• Interruption of workflow: employees cannot perform their tasks.
• Loss of revenue: direct halt of sales or orders.
• Dissatisfied clients: delays, canceled orders, or lack of access to services.
• Reputational damages: clients and partners lose trust, and these damages can reach critical levels in certain business areas. 
• Sanctions and fines: especially with contracts with strict SLAs (service level agreements).

Try to calculate exactly how much such a failure would cost your business 

This step will make you consider the risks even more seriously and answer the question of whether downtime of your office server can be a top-priority issue. Try to calculate:

• What is your average daily turnover? – This item should show you how much you will lose if your customer service operations stop.
• How many employees depend on your systems and what is their daily wage? – If these employees cannot fulfill their duties, their labor costs during this period are lost.
• How much will recovery cost – Here, you can include the cost of the work hours your IT team will spend on recovery activities. Do you have contractual obligations with clients that require penalties for downtime? If so, note the penalties you would owe for one day of downtime.

Evaluate recovery time

If the questions above are not enough to assess the risks of your office server, the next is: How long will it take you to restore everything after an outage?

Here, you will have to address several stages in resolving the issue:

• Problem identification – can take hours, especially if you don’t have an IT specialist or team onsite.
• Data recovery from backups – besides potentially taking time, there is a risk of incomplete restoration of lost data.

Calculate total losses

When you combine:

• direct financial losses,
• the time your business was down,
• the costs of recovery,
• possible penalties and damages under contracts,
• lost client trust,

you get the full picture. This amount can easily exceed tens of thousands even with a relatively short outage. And worst of all - all these costs are unforeseen for your business.

Create a risk management plan

The most important part of the process is what you do after being aware of the potential risk. This is where you need to create a risk management plan focused on prevention and rapid recovery.

An effective plan includes:

• Regular and verified data backups;
• Disaster procedures - who does what, in what order, and how long it takes;
• Team training - for actions in case of system downtime;
• Moving infrastructure to a data center - this is the most secure prevention against almost all types of incidents.

Why move your server to a data center?

Instead of relying on an unstable office environment, limited resources, and reactive support, you can take advantage of a professional service with a guaranteed level of security, reliability, and support.

See also: Server in the office or in the data center: Hidden costs and risks of placing server equipment in the office

A data center solution, like that at AC☁DC, offers:

• Service continuity—guaranteed connectivity and 24/7 power supply;
• Physical security—security, video surveillance, access control;
• Redundant internet, power supply and climate control—including backup UPS systems;
• A team of experts available 
• Predictable monthly costs and budget-friendly solutions for small businesses—no large investments required for providing an appropriate environment for your servers and no other unforeseen expenses.

With such a solution, you can rest assured that your business relies on a professional service designed specifically to guarantee uninterrupted server operation, as well as the best possible environment for their functioning and servicing over time.

To see for yourself the advantages of AC☁DC for businesses in Varna and the region, book a visit to the data center or contact our team with additional questions.

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