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The Real Cost of Downtime

by Mike Jordan, Senior Systems Engineer

We often forget about technology until it’s broken. It’s easy to assume everything is fine, until it isn’t.

That’s why having a server down that runs your entire operation will test your disaster plan (You do have a disaster/business continuity plan, don’t you?).

Days. Let that sink in a little. Depending on your location and the time of day you suffer a server failure, those two factors can play a large part in the recovery time, dragging the process out to as much as three or more days. I’m willing to bet that three days of downtime will cost you lost revenue in several areas. These sources of revenue include:

  • Loss of data – 50 percent of employees report losing access to critical data during outages
  • Risking a security breach – Employees often turn to unsecured devices during downtime, which could cause sensitive company data to leak
  • Loss of productivity – Downtime can result in a 30-40 percent decrease in productivity for employees
  • Loss of customer goodwill – If the downtime occurred during peak business hours, it can substantially hurt your dealership’s reputation
  • Loss of revenue – All of the above factors add up to substantial costs; including the revenue that your dealership could have generated during the downtime.1

Now that I have your attention, do you know how old your server is? Do you know when the warranty expires? If you don’t know the answer to these questions, you need to find out now. The estimated average lifespan of a server is typically 3-5 years. While you can often get more than this, the bottom line is this: A server that’s under warranty can often be fixed in hours, instead of days.

1. [ Haley, Jeremiah. “How to Prevent Network Downtime.” Digital Dealer, 31 Mar. 2017]

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