Downtime Happens

Regardless of how outages happen (human error, viruses, malicious activity, hardware or software failures, major catastrophes, or
other unexpected consequences) they mean impact and expense to your business. The bullets below are a compilation of third-party research that begins
to give you a feel for the bottom-line impact that downtime can have in your environment.

  • A typical large network experiences 1.76 outages per month with each lasting more than 90 minutes (Thierry Lammers, Wireless Network Administration,
    E-office).
  • According to an Oracle survey of 400 large companies, the average downtime cost is $1,400 per minute (HP web-site).
  • The average network downtime cost for large companies is $84,000 per hour (or $1,400 per minute), according to an International Data Corporation
    study (SearchStorage.com, February 16, 2005).
  • Large companies lose 3.6 percent of annual revenue to network downtime (Thierry Lammers, Wireless Network Administration, E-office).
  • The leading cause of application downtime is software failure (36 percent of cost on average), followed by human error (22 percent) (Thierry
    Lammers, Wireless Network Administration, E-office).
  • Losses average $6.5 million per hour in the retail-brokerage industry, $90,000 in airline-reservation centers, $28,000 in package-shipping
    services, $27,000 in manufacturing and $17,000 in banking (CIO Today, October 7, 2004).
  • For a 400 person company, outages cost $13,170 per hour according to Digital V6 Corp web-site.
  • For a 200 person company, the cost is $5,300 per hour according to Performance Technologies (Thierry Lammers, Wireless Network Administration,
    E-office).

Let’s take the above research numbers and get to a practical view:

OUTAGE EXPENSE AT LARGE COMPANIES
1.76 Number of outages per month (Thierry Lammers/Infotechs)
90 Average outage in minutes (Thierry Lammers/Infotechs)
158.4 Average minutes of outage per month
$1,400 Average cost of downtime per minute (Oracle Survey/IDC Study)
$221,760 Average cost of downtime per month
$2,661,120 Average cost of downtime per YEAR

OUTAGE EXPENSE AT SMALL COMPANIES
2 Assumed number of outages per month
60 Assumed number outages in minutes
120 Average minutes of outage per month
$13,170 Average cost of downtime per hour (Digital V6 Corp.)
$26,340 Average cost of downtime per month
$316,080 Average cost of downtime per YEAR

Many companies will find themselves somewhere between the two charts above. Despite where that might be, you can quickly see that downtime is expensive,
the expenses accrue rapidly, and the impact increases as the business grows. When companies lose access to their critical business data for 2 weeks,
93% go out of business (National Archives & Records Administration in Washington).

Regardless of how downtime happens, organizations need to be prepared and have a plan of action. Think of it as home owners’ insurance. No
one expects their home to catch fire and destroy their belongings or have their possessions stolen, yet nearly all of us have insurance to help
us survive such a calamity. Banks refuse to give loans without proof of home insurance for fear and risk of losing their investment. Considering
the numbers and impact above, how can you consider a disaster recovery plan that does not allow for a rapid recovery solution?

In addition, how can access to your critical business data be a part of your recovery from an outage? How can your employees get access to the
data remotely or recover your data to an alternate location if the main location is inaccessible? Taking small steps to ensure your employees have
a bullet proof way to continue delivering your product or service is vital to your business and does not have to be an expensive or time consuming
project.

Making sure your data is backed up to a secure, off-site location is one part of the process. The most important part is having the ability to
retrieve the data when you need it. And, if you can’t work from your facility, you’ll need to restore that data to an alternate location.
With the CoreVault solution, any business can restore their data to a computer located at home, remote office or data center provider via a high-speed
Internet connection and be back in business – probably before your competitors.

If you are interested in protecting your data and your business, then CoreVault has an industry-leading, “no excuses” solution that’s
automated, offsite, and affordable, both today and in the future.

To learn more about how CoreVault can help in protecting and accessing your data, please email Nathan Flow of CoreVault at nathan.flow@corevault.net to attend a FREE online meeting on February 7th 2007 at 2:00 pm ET.

For more information on CoreVault solutions, visit www.axisglobalpartners.com/solutions/secure_corevault.asp or call 305.418.9440.

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