What Is The Best Way to Back Up My Business IT Systems?
IT outages typically cost $5,600 per minute. Because there are so many variations in how companies operate, downtime can range from $140,000 per hour at the low end to $300,000 per hour on average to $540,000 per hour at the high end. In fact, According to 98% of businesses, even one hour of downtime costs more than $100,000. 81% of those surveyed said that a half-hour of downtime costs their company more than $300,000. According to 33% of those businesses, downtime costs their companies anywhere between $1 and $5 million per hour. This is why it is important to learn exactly what it takes to back up your business and understand that a plan in place means lower costs associated with downtime. As an MSP for the past 15 years servicing the Salt Lake City area, we have seen too many small and medium sized businesses experience losses that are detrimental, especially businesses who are based on high-level data transactions. This post will cover what downtime really means to a business, why understanding the cost of downtime is important and how to build a recovery plan in just a few steps.
What is Downtime?
It would be helpful to explain what downtime cost implies and what it impacts before we go into the explanations for downtime and its typical cost to a firm. Any earnings that a company loses when its network or equipment malfunctions is referred to as downtime cost.
Downtime may make or break the profitability of your business because it is so expensive. Due to the complexity and unpredictability of technology, it is also essentially inescapable. When your technology fails due to pure accident, downtime is already expensive enough. But when downtime is caused by malicious activity on the part of hackers and other threat actors, the financial costs can start to soar at an alarming, frequently business-destroying rate.
The Components that Make Up Downtime Cost?
Data loss is a hassle that makes it difficult for any information-based organization to conduct its daily operations. Your company must invest time and money restoring these files when sensitive data is lost in order to fill the gaps left by the loss.
Damage to your organization's reputation is one of the downtime's most real and long-lasting effects. Customers will post bad reviews and stop using your service if they have any issues with server failures when using your business's service or product.
Much of business is conducted online in some capacity or another. Ordering online, placing vendor sales, sending emails, etc. Unscheduled downtime will result in loss of productivity, be it for an hour or even a few days.
Lost opportunities primarily translate into lost clients. A business cannot provide its service if there is an IT outage. According to research, 47% of online users would abandon a website if it didn't load in 2–3 seconds. Due to service interruptions, clients are less likely to wait for your company to fix the issue and are more likely to locate a better solution from one of your competitors.
Your company can realize thousands, or even millions, of dollars in quantifiable cost savings by taking the time to implement a plan for dealing with inevitable downtime. In addition, you can maintain the vitality of important qualitative factors like employee morale, brand reputation, and customer loyalty.
Here are the 4 Easy Steps to Take For Minimal Downtime in the Event of an IT Interruption. Step #1: Put together a Disaster Recovery Team. Making a disaster recovery plan can be a daunting task, as it is with everything we don't know how to do. Don't attempt to accomplish it alone, is our suggestion. Create a Disaster Recovery Team with a few staff members whose responsibility it is to supervise, plan, and carry out the DRP's operations.
Step #2: The success of your Disaster Recovery Plan is in the details.
It's crucial to be very specific and include all the little details when creating your disaster recovery plan. Following a "disaster", instructions should specify not only WHAT must be done but also WHO is in charge of doing it. Give the tasks to individual employees in your business; here is where a team comes in handy. As your plan is developing don't forget to document EVERYTHING.
Who is in charge of communicating with clients?
What role will the "disaster" plan in your vendor's businesses and who needs to address those issues?
Who takes the lead on restoring the major operations systems?
These are just a few examples of areas that will need to be planned out because when disaster strikes and each second that passes means lost revenue, you will be glad that you don't have to figure out who is responsible to do what.
Step #3: Test, test and retest. This is frequently the most neglected but also the most useful stage for keeping your company ready and prepared. After spending the effort to assemble a team, create a disaster recovery plan, and implement it for your company, then you check it off your to-do list and wipe your hands clean of it. This is a MAJOR error! The last thing you want to deal with during a disaster, when stress levels are already high, is implementing your plan for the first time. Because it is true, the cliche "practice makes perfect" gets overused for a reason. You and your team will find any shortcomings in your disaster recovery plan by putting it to practice. Step #4: Work with a Professional. Implementing a Disaster Recovery Plan will be easier if you collaborate with an MSP, or managed service provider. Your company's time and resources would be better spent concentrating on your business itself rather than on disaster recovery. If technology is not your area of expertise, the time spent will mount up rapidly. Small and medium-sized businesses are turning to MSPs to help with disaster recovery planning, implementing, and training because of this. In the event that disaster recovery and business continuity are crucial, a qualified MSP will create a plan that addresses every aspect of your company and is tailored specifically to your needs as an organization. The expense of your disaster recovery planning is kept to a minimum by MSPs' use of solutions like cloud computing, backup monitoring, and external server databases. As we come to a close just remember that disasters come in all types and sizes and when it strikes it's too late to get that plan in place. We hope that you found these steps helpful. We have also put together a Disaster Recovery Planning Template to get you started. Whether you use these resources or not just promise me that you will get something implemented in your business asap.