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For many SMEs, connectivity downtime is the highest business cost of human resources. It is also one of the problems with the most far-reaching consequences an organisation can face, having an effect, not just on your business, but on customers, suppliers, management, staff and critically, reputation. Understanding precisely where downtime costs, is crucial if you want to understand the repercussions to your business in 2018.
Recent research has broken down zones where downtime losses ensue causing spending to increase. Industry researchers, Gartner estimated recently that the actual cost total of downtime to organisations is approximately £4,300 every minute, that’s £258,000 every hour using a simple formula:
Turnover ÷ No of working hours in the year = Loss of revenue per working hour
Downtime has an annual estimated cost to businesses in excess of £12 billion, making uptime a problem that needs to be taken seriously.
As an extreme example to prove a point, mega-retailer, Amazon suffered downtime of about 15 minutes, this transitory interruption cost an estimated $66,240 every minute the company was offline.
- 78% of downtime costs are connected to worker productivity
- 17% of losses are lost sales opportunities and lost revenue
- 5% of downtime losses are linked to repairs
Downtime costs are rising, in 2010 downtime was about 38% cheaper than it is today to administer, while a 2013 appraisal of the same study confirming that expenditure continued to increase as more SMEs moved their services online. Recent downtime losses in Fortune 1000 companies were estimated to be between $1.25 billion and $2.5 billion.
Now, while your SME might not be in that bracket, small to medium enterprise downtime losses may not run into the thousands of pounds a minute, but they can be no less calamitous. Businesses that are do not invest in MSP packages and rely instead on a ‘break-fix’ model, could find that downtime phases last considerably longer than 15 minutes, meaning costs can rise quickly.
The True Cost of Downtime
In the event of a major IT disaster, critical data loss or a comprehensive network outage, for instance, staff can be unable to complete tasks and processes can come to a stop.
A study recently found annually, the average worker loses 38 hours, through issues such as slow connectivity or downtime, which equates to a full working week, across the year, multiply that across your business and the enormity of downtime becomes apparent. Downtime prevention now becomes a well worth investment.
- Sluggish systems slow employees’ productivity
- Staff support co-workers to take on additional tasks or perform IT responsibilities
- Managers are re-purposed to help staff through issues
- IT teams are trapped dealing with support requests with no time for maintenance
- System downtime prevents sales and remote staff from accessing facilities
- Reputation is damaged
Linix’s reliable, managed hosting not only offers an uptime guarantee but also makes certain that network issues are dealt with before they become costly. When downtime happens, for any reason, your company is losing money. Preventing interruptions is essential for organisations of all sizes, but dealing with these issues in advance will save money in the long term.
- 95% SLA
- Superfast broadband
- High-security levels and control
- Solid servers delivering high performance
- Scalable business requirements to suit every organisation’s needs
- Cloud ready
- Completely backed up solutions
- Dedicated account management and pre-sales support team
- An expert, UK based support 24/7/365
Instead of worrying about repair costs, lost hours, missed sales, and the all-important hit to brand reputation, Linix allows businesses to manage their IT needs through a monthly payment scheme to mitigate escalating expenses.
Contact a member of our team today to find out how your business can benefit from our IT systems.