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Services: Information Technology Services

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Downtime Cost Calculator

Determine how network downtime impacts your bottom line. Enter your data in the Your Company Information section at the top part of the form. As you enter your data and tab through the fields, the calculations will automatically be performed. Risk assessments can help identify, manage and reduce your risks.


Employee Productivity


Annual Revenue of your Company

$

(1)


Number of Employees:

#

(2)


Calculate Average Revenue per Employee:
(Line 1) / (Line 2)

$

(3)


Determine Total Hours per year, per Employee:
(e.g. 40 hours x 50 weeks = 2,000 hours)


(4)


Calculate Avg. Revenue per Employee/hour:
(Line 3) / (Line 4)

$

/hr 

(5)


System Restoration Cost


Total Labor Hours required to replace lost data and restore system


(6)


Per hour cost of Restoration Services:

$

(7)


Calculate Cost of Labor to restore system:
(Line 6) x (Line 7)

$

(8)


Lost Employee Productivity Cost


Total Hours the system is down:


(9)


% of employees (excluding systems staff)
that are unproductive during downtime


%

(10)


Calculate Cost of Employee Downtime:
[(Line 2) x (Line 5)] x (Line 9) x (Line 10)%

$

(11)


Lost Sales Opportunity Cost


Number of Sales per year


(12)


Estimated number of sales lost due to outage:


(13)


Calculate Sales Opportunity Loss:
[(Line 1) / (Line 12)] x (Line 13)

$

(14)


Lost Customer and Damaged Reputation Cost


Total number of customers last year:


(15)


Calculate Avg. Revenue per customer:
(Line 1) / (Line 15)

$

(16)


Number of customers lost due to system failure:


(17)


Calculate Customer and Reputation Cost:
(Line 16) x (Line 17)

$

(18)


Calculate Total Cost of Network Downtime:
(Line 8) + (Line 11) + (Line 14) + (Line 18)

$

(19)


 

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Please contact Jeff Sheets for more information: jsheets@packerthomas.com

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