How much does it cost to Lose or Recover Data?
Majority of businesses owners only think about the IT labour costs to restore data but there is a lot more to consider when disaster strikes:
- Downtime means your staff are not being productive but you still have to pay their wages.
- Downtime can result in loss of revenue because your email server is down, website, access to your files or programs or even your phone system depending what is down.
Lets take a look at an example scenario of a server being down for 2 days due to failed hard drive.
- This company has 5 staff members and an SBS server.
- The employees work 8 hours a day at $30 per hour. This equates to “8 X $30 X 5 staff x 2 day which is $2400 ( less tax but lets keep it simple for the scenario)
- Average daily revenue is $5000 but with computers down and only relying on phone calls and hand written sales then only managed $3000 for the 2 days. This results in $7000 less in revenue because their server is down and customers went elsewhere.
- The failed hard drive in the server meant:
- Emails are down
- the database for their CRM is on the server so no one can look up sales, products,quotes or customer details.
- The website is also hosted on this server. This means their website is down.
- During the 2 days of being down it took the IT provider 15 billable hours to restore the data. They charge $150 per hour which equates to $2250 in IT labour to recover your data and get rid of virus.
Staff Wages $2400
IT Labour $2250
Total Cost $ 11,650
This is just a rough scenario it maybe higher for your business. Imagine if some of the data wasnt recoverable and you have to pay employees overtime to reenter the data.
It can become quite and expensive situation for a business to deal with.
There is a statitics on data loss and its close to 80% of small businesses that experienced a dataloss go out of business withing a year.
Dont become another statistic and get yourself a Disaster Recovery Plan today!