What Is the Cost of IT Downtime?


According to a research made by our professionals, the total unplanned IT downtime cost is $5,600 per minute and $300,000 per hour.

Can you believe that?

In today’s business environment, calculating costs of IT downtime requires a planned strategy as business leaders are extremely cost-conscious and strive to pare every ounce of fat from their budgets.

The flow of accurate and timely information is the lifeblood of the business, and when it’s disrupted, business screams to a dead halt. That gets expensive fast. Lost revenues can easily run up into the six or seven figures. And that’s just the start.

However, most executives become “cost-unconscious” when thinking about network downtime. They don’t consider downtime costs until an outage occurs. Then, faced with loss of revenue and productivity and damage to their reputation, downtime becomes a painful concern.

But let us first understand what IT downtime is?

Primarily, the technology is directly proportional to any action or inaction that results into inefficiency or complete system halts in business productivity and functionality, whether accounting processes or manufacturing activities, calculated as IT downtime.

The downtime cost is in terms of hourly cost to the company when a system – applications, software, and hardware – is down.

The consistent and highly publicized data breaches in the IT components and functioning impacts businesses badly of all sizes, unplanned IT downtime concerns are increasingly real.

Whether it’s a server disruption or massive data breach, unplanned IT downtime is costly – regardless of industry, market or size of business.

The types of IT downtime:

Downtime falls into two primary categories: planned and unplanned.

Planned downtime cannot be avoided as more businesses operate 24/7. Since it can be scheduled for low-use times and users can be alerted, it’s not the main problem.

Unplanned downtime keeps IT professionals, executives and business owners awake at night. It can be occurred due to hardware failures and natural havoc. Hardware failures account for less than 10 percent of all network failures.

How to calculate the Cost of Downtime per hour?

The downtime cost per hour is estimated by adding labor costs per hour to the revenue cost per hour.

  • If you want to compute labor cost per hour of downtime, consider revenue, number of employees, yearly employee benefits, hours worked per week etc.
  • And to calculate your revenue cost per hour of downtime, consider how much revenue you make every day and the percentage of your revenue.

Mind this Fact

Downtime cost is getting more costly as data repositories become more valuable to their operators. The increase is driven by the increased value of the business operations being supported by the data center. The significant costs that are incurred by businesses with their respective revenue models depend on their data center’s ability to deliver IT and networking services to clients.

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