The High Cost of Internet Downtime

What’s at stake?

We live in a connectivity-driven economy, where efficiency and productivity of businesses big and small presume non-stop access to on-line applications and data.

  • Healthcare organizations rely on electronic health records to build comprehensive patient profiles and choose appropriate patient treatments
  • Investment institutions rely on analytic tools to develop their strategies, manage their transactions and communicate with their clients
  • Restaurants, car garages and beauty parlors rely on their applications to track reservations, customer payments, supply inventories and employee shift scheduling
  • Cleaning companies and courier services use applications to manage their customer visits
  • Retail stores use their applications to market directly to their customers and provide customer support

Temporary loss of Internet connectivity means the loss of access to business applications which produces disruptions in business efficiency, disruptions in employee productivity and loss of revenue opportunities. Internet downtime is costly. According to AppDynamics /Cisco research downtime can cost a Small to Medium Business between $8,580 and $74,000 per hour.  Yes, this is not a typo! Now this is an average and there is a large degree of variance, based on what applications and how much revenue transactions occur over the internet for each business.

How to calculate your downtime loss

Calculating losses due to downtime takes some algebra. While the impact of one hour of downtime to business revenue may vary widely, below is an accepted basic formula that will help you estimate how much your business might be impacted.

 Equation to calculate lost revenue

Where GR = gross yearly revenue; BT = total yearly business minutes (60 x hours per day x days per week x weeks per year); I = percentage revenue is impacted (an online retail business could see 100% impact whereas a sole proprietor insurance company could be 60%) and T = number of minutes of outage.

Calculating direct revenue loss is just the beginning.  Further calculations include the cost of lost employee productivity, loss of revenue due to customer loyalty, and loss of revenue due to the damage to your business’s reputation.

Make sure you are prepared

Organizations take advantage of multiple different availability, performance, security, and mobility services in their quest to keep applications safe, fast and available to employees and customers. In N5 Networks’ State of Application Delivery Survey  33% of network professional respondents identified availability as the IT service without which they couldn’t imagine deploying an application.

Availability matters because when it isn’t there, everything else stops. Even if it doesn’t stop completely, the speed of business cannot afford the impact of the slowing down for loss of Internet connectivity.  If your business depends on Internet connectivity for business functions like processing credit cards, placing orders, or accessing business-critical data; make sure you have an emergency Internet backup plan for your business.  A Wireless Internet Backup service can provide businesses with operational alternatives to keep running when, for whatever reason, primary network services become unavailable.  Wireless Backup Internet services can cost as little as $2.00 per day, making them a strong choice as a connectivity insurance policy.

$8000 per hour Internet Outage vs $2 per day Wireless Internet Backup

With reliable backup Internet connectivity, a company can keep their business online 24x7x365 without incident.  Many of our business clients identify that Wireless Internet Backup has helped save them thousands in lost revenue and has been a valuable addition to their business continuity plan.

How does Wireless Internet Backup work?

Wireless Internet Backup works with any existing network while managing failover and providing a secondary 4G LTE Internet connection.   Service includes an easy-to-install Wireless Internet device that you take from the box and just plug it into your modem and router/firewall.  When your primary Internet connection fails, traffic is automatically routed in seconds to your backup 4G LTE connection and alerts are sent so you know to contact your Internet Service Provider.  Wireless Internet Backup services include a secondary Internet connection with automatic connection failover, 4G LTE data service, hardware, and monitoring.


CloudScale365 is a Managed Cloud and IT Services company specializing in translating client’s business workflow requirements into a competitive IT strategy. The goal of this blog is to answer the questions that you ask.  For more information on Wireless Internet Backup, check out our website. We encourage you to contact us with any questions about IT planning for your business or cloud services!

2018-06-22T17:14:58+00:00 June 12th, 2018|Blog|

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