Disaster Recovery and Business Continuity: The Real Cost of Downtime

Author: John "JB" Bacon

It’s no secret that disaster recovery and business continuity go hand in hand. When calculating the actual cost of how downtime impacts a business, many organizations feel challenged to quantify the numbers.  

Consider this: 

A 2023 Gartner Report shared that 72% of organizations must be better positioned in disaster recovery. However, even more alarmingly, the report cites that 63% suffer from “mirages of overconfidence.’ 

In short, organizations are often not as prepared as they think to handle downtime resulting from a disaster. 

To better understand how downtime impacts an organization, we turned to our partners at Bigleaf Networks and their Downtime Calculator.  

The equation Bigleaf generated looks like this: 

Lost Revenue + Lost Productivity + Recovery Costs + Intangible Costs = Your Cost of Downtime 

So, what’s the real cost of your downtime? And how do you mitigate it by using disaster recovery and business continuity? 

How Much Does Downtime Cost?  

How your organization handles disaster recovery and business continuity significantly impacts downtime costs.  

Recovery from incidents results in tangible expenses, including consulting fees, data restoration, system repairs, and software or hardware components replacement. Additionally, there are intangible costs, such as potential damage to the company’s reputation and decreased customer satisfaction. 

According to one Gartner survey, network downtime costs about $5,600 per minute.  

A IT Intelligence Consulting survey had 98% of respondents say that downtime costs of $100,000 or more are the norm. 

Remember that even if your uptime percentage is high, there’s always some downtime. Bigleaf Networks’ research found that uptime is only entirely usable roughly 93% of the time, and the other 7% works out to over 600 hours a year.  

Downtime impacts organizations of all sizes. The National Cybersecurity Alliance found that small businesses are highly vulnerable:  

  • Almost 50% of small businesses have experienced a cyber-attack. 
  • More than 70% of attacks target small businesses. 

Most alarmingly, as many as 60% of small or medium-sized businesses that experience a data breach go out of business within six months.  

By understanding the true cost of downtime and how it goes hand in hand with disaster recovery and business continuity, you can more effectively prioritize solutions and make more informed decisions investing in preventative solutions.  

Creating a Proactive Plan

When considering the impacts of downtime, mapping out a strategic plan for disaster recovery and business continuity is a must.  

Disaster recovery planning is pivotal in enabling businesses to sustain their essential operations, even when confronted with unforeseen disruptions or catastrophic events. This continuity is essential for upholding customer trust, fulfilling contractual commitments, and preserving revenue streams.

The primary aim of proficient disaster recovery planning is the reduction of downtime. The faster a business can bounce back from a disaster, the less it will disrupt its operations and financial stability.

Business continuity isn’t the only thing disaster recovery can do for your business. Other benefits include:  

  • Protecting data.  
  • Ensuring regulatory and insurance compliance. 
  • Mitigating financial losses. 
  • Accounting for the safety of employees. 

When considering any disaster recovery solutions for your organization, be sure to consider the following questions:  

When vetting potential disaster recovery solutions, we recommend using these questions as a starting point: 

  • What is the scope of the disaster recovery solution? Does it cover on-premises, cloud-based, or hybrid environments? 
  • How does the disaster recovery solution handle data backup and replication? Is it automated, and what is the frequency of backups? 
  • Does the solution offer redundancy and failover capabilities to ensure high availability during a disaster? 
  • How does the solution handle data encryption and security to protect sensitive information during backup and recovery? 
  • Can the solution scale accommodate our growing data and workload needs? 
  • What is the cost structure of the disaster recovery solution, including initial setup costs, ongoing maintenance, and any hidden fees? 
  • Are there any compliance requirements (e.g., HIPAA, GDPR) that the disaster recovery solution needs to meet? 
  • How does the disaster recovery solution integrate with our existing IT infrastructure, applications, and systems?

These questions are just the tip of the iceberg, and our team of tech experts can help you find the right solution, at the right price for your company’s needs.  

Bridgepointe’s tech experts can help you identify the best possible disaster recovery plan and solutions for your company. Get started by connecting with an expert below. 



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