Can you afford the loss caused by data center downtime?

You must be clear about this question: Is it worth the extra money to add a "9" for availability? Can it be proved that uptime really needs to be increased from 99.99% to 99.999%?

Two important calculations help you make this decision (at least from a financial perspective): upgraded availability and downtime costs. This article focuses on downtime costs.

If your uptime does n’t affect your business much, in other words, a few hours or even days of downtime will not have a real impact on your business, it ’s just a little inconvenient. In this case, you do not need to invest more in infrastructure to prevent downtime, because this investment simply does not have enough return to prove its value.

But if even a few seconds of downtime will be a heavy blow to your business, then you need to consider how much money should be spent to increase the availability of your data center. To do this, you must calculate how much your company will lose in the event of a downtime?

Accurately measuring the cost of downtime depends on your business type. If your company conducts research and development, for example, your business focuses on online sales, then you must estimate those situations where downtime will occur. Many factors that others do not need to consider should also be taken into consideration.

The following list contains many factors that you need to consider when calculating downtime costs. Most companies only need to consider one of these factors, and then determine whether they need to consider other factors for special situations.

Basic employee costs: If your employees ’working hours are within the normal uptime of the data center, then the cost of each downtime is equal to the cost of the employees’ wages paid during the downtime. At work, the wages you pay are basically not profitable. Don't forget to include cost-effectiveness.

Facilities cost. Even if your data is closed and employees cannot work, you must pay for infrastructure related costs. For example, you may continue to use central air conditioning, lighting and other public expenses.

Business loss. If your business is completely dependent on the website, then downtime means that these customers will not be able to purchase your goods or services. In fact, maybe they will wait for you to repair and come back to continue purchasing, but on the other hand, they will simply go directly to other websites to buy. Therefore, this part of the lost business is also your downtime cost.

Data loss. Downtime does not only mean that you have to pay unnecessary labor costs, in some cases, you may lose valuable data forever. You have invested time and money in the collection and development of these materials. If it is maintained or delivered as planned, the value will increase.

Recovery costs. Once your data center is back in operation, the loss may continue to rise. For example, the staff of the first-off facility must continue to carry out repair work or other tasks related to shutdown.

Most of these costs depend on the length of data center downtime. Use this method to calculate the loss per minute (it can also be in units of seconds, hours, and days.) Then multiply the total downtime per year, in minutes (or other time units). If you know your expected downtime for a year, you can estimate your downtime costs. In contrast, the investment value of increasing reliability by improving infrastructure is clear at a glance.

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