INFOGRAPHIC
LanDynamix launches a cost
of downtime calculator guide
According to LanDynamix
Technology Adviser, Ethan Searle,
key technology stakeholders in
companies will acquire the buy-in of
financial and operational stakeholders
if they are able to quantify the cost of
the problem and demonstrate how their
intended technology decision will generate
a return on investment for the business.
“Many technology stakeholders find
themselves in the position of trying
to justify to financial and operational
stakeholders increased spending on their
new technology by expanding on the
technology benefits. This is not the right
approach and will not lead to technology
stakeholders getting the budget and tools
they need to ensure business uptime,”
says Searle.
LanDynamix has developed a cost of
downtime calculator that defines the
financial and operational terms of a
technology failure. Searle explains that
while the goal is to find a solution that
generates a return on investment as a
first step, buy-in will be best achieved by
the application of the cost of downtime
calculator, developed by the company.
LanDynamix has set out the following
cost of downtime guide to be used with
the calculator. “The next step is to
determine what these lost hours equate to
in Rands and cents. There are two types of
Rand per hour costs to think about – human
cost and profitability.”
Searle defines these as the following:
Human cost
The human cost is relevant because
the business is essentially paying the
employee for idle time during IT failures.
To be conservative, one could argue that
employees in an office could do other tasks
during the outage and are, in fact, not
entirely redundant. For example, end-users
might still be able to send mail or do admin.
To cater for this, the employee’s hourly cost
to the business could be halved. For this
example, lets arbitrarily set the average
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