How can network downtime affect your company?

Posted by Blog Tipster

Oct 31, 2012 2:02:00 PM

Network downtime affects businesses of all sizes. You do not need to be a in the technology industry to have a strong dependency on technology. Everyone can agree that network downtime costs businesses money, however not everyone understands all the costs associated with network downtime.   Here are just a few of those costs:

  • Productivity: The level at which a worker’s productivity if affected by network downtime can vary depending on the level of reliance on the technology. While the actual losses vary greatly everyone agrees that when the network goes down it costs the business money.
  • Morale: When systems go down and simple tasks turn in to impossible challenges morale can go down. This is very difficult to measure since everyone will react differently if a crash occurs. Some people may just stop working until the systems are fully functional while others may try to continue working while encountering the challenges and frustrations associated with a down network.
  •  Credibility: Chances are you have clients who rely on you for a product or service. Network downtime can trickle down and affect your ability to effectively take care of you clients. Depending on the service or product that you provide one hiccup may be all it takes for your credibility to take a hit and the client to start looking elsewhere.
  • Money: This is the most obvious cost associated with network downtime and ties in to the other three listed above. If the business is unable to fully function (or function at all) due to downtime then it is losing money. Determining how much money is lost will vary depending on how large of an impact the downtime is on the business. Here is a simple way to calculate the direct financial loss:



(GR/TH) x I x H



gross yearly revenue



total yearly business hours



percentage impact



number of hours of outage


There are many different ways network downtime can affect your business. To ensure that you remain up and running you should take a proactive approach to maintaining your network. Catching problems before they happen will translate in to real dollars.

- Nick Kowalski Client Service Rep

Topics: downtime

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