Understanding the Cost of Downtime

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Business downtime is costly. Research abounds on just how much it can set a business back. Some small businesses can’t even rebound from the expenses associated with downtime. This article outlines the many expenses a business can encounter as a result of downtime.

What do we mean by downtime? There are many reasons a business might experience IT downtime. Say, the Wi-Fi goes down or there’s a simple power outage. Either could lead to a small-scale, short-term downtime.

Worse, you could be the victim of a cyberattack that sees criminals encrypting your data. A data breach or malware infection could force you to take systems offline to solve the problem.

Severe weather events such as tornadoes or hurricanes can also cause downtime. Or maybe the building suffers a gas leak or a fire, and your business isn’t immediately able to get back on-site. If you don’t have cloud-based access to your applications, you could suffer downtime.

Every minute you are without your business technology can add up. Let’s consider the various costs you could encounter.

Loss of business revenue

If your people can’t access business systems or network applications, productivity drops. Your sales team can’t close deals, or your product development team can’t access schematics. Perhaps someone in client development can’t get to their pitch presentation.

Remediation costs

Fixing your business technology after downtime takes extra work, which means added resource costs. You may have to pay overtime to the IT team working round the clock to get you back up and running, or there could be places you need to catch up when you had to spend time doing things manually. This disrupts efficiency and costs money.

Customer dissatisfaction

How often do you hear someone apologize for their computer running slowly? When you call a customer service line it’s a familiar frustration. Imagine telling someone instead, “our systems are down, and we are unable to help you right now.” You will be compounding customer aggravation. They don’t want to wait for your downtime to end to resolve their issue.

If there’s a data breach, customers will worry about personal data or compromise of proprietary information.

Legal and compliance fees

Your business could run afoul of compliance or face legal action. For instance, if you are in the health services industry and are breached, you could be hit with hefty fines for jeopardizing personally identifiable information.

Brand reputation

Say your payment processor goes down, and you’re not able to take any orders. Some customers will get impatient and order from a competing website. They may end up switching to that company permanently.

There’s also a misconception that any press is good press. But you do not want your business to make headlines for having fallen victim to a cyberattack.

Employee engagement

Every business owner recognizes the importance of retaining motivated and skilled staff. Employees frustrated by downtime may start looking elsewhere.

Morale and your business culture could decline. Turnover could rise. You’ll need to invest time recruiting, training, and retaining fresh new hires.

Key takeaway

Don’t think business downtime can’t happen to you. When it comes to technology, threats are ever-evolving. Keep current with updates and software upgrades, and be vigilant about fresh threats.

Partner with an MSP to develop backup plans. An IT vendor can help move systems to the cloud to ensure mobile access. MSPs can also be proactive. They perform preventative maintenance and help cut your cybersecurity risk.

We can’t promise downtime won’t happen, but we can make sure you are resilient and able to bounce back more quickly should problems arise. Contact us today at (515) 422-1995.

4 Ways to Avoid IT Downtime

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4 Ways to Avoid IT Downtime

Technology is a wonderful addition to every business, but what happens when the IT goes down? All those things you do now that were completely unthinkable 30 years ago have become part of your day-to-day processes. It lets you compete with big business and connect with customers from far away, boost productivity and efficiency like never before, and even added multiple zeros to your bottom line. IT is a necessity. Unfortunately, this means when downtime inevitably hits, you’ve got a BIG problem.

Maybe it’s from a virus attack, a bug in the system, hardware failure or something else…whatever the cause, the impact is real and measurable. Gartner (an IT research company) reports that 43% of small businesses close their doors right after a major data loss, and only a tiny 6% survive long term. The financial cost of each hour can be in the thousands, and the damage to your brand could be ruinous. Fortunately, while downtime will occasionally strike every business, there are things you can do to minimize the duration and frequency.

Taking a few simple actions now may result in your business staying open while your competitor gives up.

Use managed antivirus, web filtering, and software patching

While most businesses have antivirus, not all have embraced the idea of monitored antivirus, a web filter, and automated patch management. Instead, the default setup has more in common with a home network rather than a robust professional system. The main issue is, while YOU may be great at keeping your antivirus up to date, not falling for a scam site, and installing your software patches, your employees may not be as knowledgeable or diligent. Each employee is a potential vulnerability. The more people who have access to your network, the harder it is to keep up on the security of your network. Instead of trusting a technological Luddite with access to your important files, doesn’t it make sense to automate the process of virus scanning, web filtering, and updates and patches? Given that SMB are a primary target for malware and cyber-attack, you should seriously consider how to prevent the intern in accounting from opening a malicious e-mail that infects your book-keeping system. Our experts set up custom protection to block attacks, both known and emerging. All ongoing software updates are taken care of, plus company-wide protections are applied so users can’t accidentally infect the network. Finally, when something doesn’t look quite right, we can take immediate action to protect your business.

Have backups you can count on

A great backup can not only protect you from digital threats like viruses and ransomware, they protect against physical threats like robbery, fire or natural disasters. The last thing you want is for your business to be crippled by data loss. A robust backup system can be as simple as asking our Managed Services team to take care of it, or if you have an on-site technician, using the rule of 3: one backup on the server, one unplugged from the server, and one off-site. If anything ever goes wrong, you’ll be able to pull up the most recent backup and continue as normal. Businesses without good backups tend to be down or limping along for days, if not weeks. Oh, and the most important part…TEST YOUR BACKUPS REGULARLY!

Plan for disaster

Nobody likes to think about their business flooding or being hit with ransomware, but would your employees know what to do if something happened? How will you access e-mail? Server files? Take or make phone calls? Having a comprehensive Disaster Recovery Plan helps you get up and running quicker, minimizing downtime. Everyone knows what steps to take, who to tell, who should be doing what, and which systems take priority. It’s a lot easier to make these plans and spend a little money up front to help mitigate a disaster rather than wait until you are in the thick of it!

Monitor hardware for early signs

Computer hardware is like any piece of equipment – when it’s getting old or cranky, it will let you know! This could be anything from making noises, being louder or slower than normal, or even system crashes. Each symptom is your early warning system that allows you to take action before a crash that sends everything into downtime. Hardware monitoring services run in the background and track various metrics to predict time until failure. If the signs point to imminent failure, you can be alerted and can often repair/replace the affected hardware with little or no downtime.

Downtime is an unavoidable part of any tech-enabled business, but your preparation can dictate whether it goes for one minute or one week and how often it happens. According to one study, most firms experience 43 hours average downtime per year, a number much too high for comfort. While scheduled downtime can sometimes be unavoidable, your business will appreciate being able to skip the panic of surprise downtime events. Reducing your risk is the best action you can take, making downtime a truly rare occasion. Even better, our Managed Services can take care of this for you, stopping many downtime-events before they occur.

Talk to us about minimizing your downtime. Call us at 515-422-1995

Managed IT Can Help Save Your Business

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When it comes to running a modern business, technology is always a growing line item in the budget. Costs seem to creep up every quarter, along with a new learning curve for simply keeping everything running along smoothly. It’s no wonder then that budget restrictions for tech were recently found to be a universal concern for small/medium business.

You’re balancing the outlay of maintenance with replacement, plus securing against a steady stream of threats – all while making sure every dollar gives maximum return on investment. It even sounds exhausting! What typically happens is the tech budget gets stripped to a bare minimum, hoping nothing unexpected pops up and everything keeps moving along nicely. After all, everything is working just fine and that money could make a real difference elsewhere… except as soon as an IT emergency strikes, that tiny budget is obliterated and you’re left to either limp along with insufficient tech or dip into another budget area.

Now imagine if budget wasn’t an issue. Imagine all your tech expenses were predictable and you got everything you needed without resorting to financial magic tricks. Sounds good, doesn’t it?

Put simply, that’s how a Managed IT Service works. It’s a service designed for businesses with a limited budget who don’t have time for tech issues. For a certain price each month (which is no doubt less than you’re thinking), you get a team of IT technicians actively monitoring your systems in order to catch issues before they occur, repairing problems on the fly, and ensuring your business is always as secure as possible. Included as part of your Managed IT Service, you also get expert business consulting around the solutions you need now, which solutions will help you rapidly scale, and which technology you don’t need. All for one predictable price each month. It gets better:

You’ll reduce downtime and associated revenue loss.

Forget scrambling while systems are down, with Managed IT Services you’ll know what technology is failing and can proactively repair or replace it before it impacts your business. Downtime is planned/minimized and your staff are working uninterrupted by tech drama.

You’ll skyrocket efficiency.

You’ve probably been responding to your IT events in ‘firefighter mode’, essentially dealing with problems as they arise and switching to new, improved tech only when you must. With Managed IT Services, problems are automatically reported and optimal solutions designed in advance. Even the small issues that have been slowing your business down and limiting progress come to light, ready to be solved for greater efficiency.

You’ll secure against data loss.

Whether you’ve been following the news and worrying about the next cyber-attack, or you’re working with confidential customer or proprietary data, Managed IT Services have you covered. Our technicians can secure your business against attack using the latest technology, full backups, software updates and leverage every drop of their know-how to keep your valuable data safe.

Learn more ways Managed IT Services can benefit your business – give us a call at 515-422-1995.

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