Internet downtime drains productivity from the average business. A Gartner Study estimated the cost of network downtime at $5,600 per minute for average the business.
The study also notes a large degree of variance related to the estimation. Downtime cost range significantly from one business to another, which is why we've developed a calculator to help individual businesses better understand their cost.
Fill out the form and click the button to estimate internet downtime cost for your business.
Internet downtime cost is a function of time, expenses, and the number of people involved in solving problems.
Usually internet connection problems involve at least one person experiencing the issue. We call that person, or those people, the end user. The person, or people, responsible for helping end users resolve internet disruptions are referred to as IT staff.
Estimating cost requires some information about the monetary value of people's time. We find average hourly wages effective for the estimation because it balances easy-to-find and accurate-enough. The other cost to consider when estimating downtime is opportunity cost.
Opportunity cost, sometimes referred to as intangible cost, represents revenue or other opportunity people would be earning if they weren't dealing with an internet connection problem. For example, if a representative at a collections agency encounters problems with thier internet-based phone, the opportunity cost is the value of the collections they would have made with a functional phone.
After we form some understanding of the monetary cost involved with internet downtime, the next step is estimating the duration and frequency of issues. With information about cost, duration, and frequency at our disposal, average monthly downtime cost can be estimated by multiplying the three amounts together.