The Hidden Cost of IT: Could Your Business Survive a Serious Outage?

IT systems are essential for most businesses, and when they go down, it can lead to significant disruptions. Whether it's due to a technical failure, cyber-attack, or human error, downtime can quickly become very expensive. In this article we break down a scenario based on typical answers from UK SMEs to show the real financial and operational impact of IT downtime and why having a reliable recovery strategy is essential.

Scenario Breakdown

1. How long can your business survive without access to your IT systems?

Many businesses would struggle to stay operational without access to IT systems for more than 8 hours. After that, critical processes come to a halt, and productivity declines rapidly.

2. How many hours of work are you willing to lose/repeat?

The average business can tolerate 2 hours of lost or repeated work. Beyond that, it begins to affect service delivery, employee morale, and customer satisfaction.

3. How much data do you have on critical business systems?

Many SMEs manage around 2,000 GB (2 TB) of critical business data. This could include customer records, financial documents, emails, and project files - all essential to daily operations.

4. How often do you back up your data?

For many businesses, data is backed up once every 24 hours, which means up to an entire day’s worth of work could be lost if recovery isn’t fast enough.

5. On average, how long does it take your client to notify you of an issue and for you to start troubleshooting?

Response times from clients are generally quick, with the average notification and initial troubleshooting taking 30 minutes. However, depending on the complexity of the issue, this doesn’t always guarantee fast recovery.

6. Where do you currently store your backups?

Many SMEs store backups in a combination of local and cloud storage. Local backups offer quick recovery, while cloud storage provides security and redundancy in case of a local disaster.

7. What is the download speed from your cloud backup location?

The average download speed from cloud backups might be around 70 Mbps, which will affect the speed of recovery depending on the amount of data that needs to be restored.

What Happens When IT Downtime Strikes?

Based on the above, here’s an example of the potential costs your business might face due to IT downtime:

• Time Between Backups: 24 hours

• Recovery Processing Time: 65 hours and 1 minute

• Estimated Recovery Time & Loss: 65 hours and 1 minute (~£201,549)

• Response Time: 30 minutes (~£1,550)

• Estimated Downtime & Loss: 65 hours and 31 minutes (~£203,100)

In this typical scenario from typical response from SME’s, if your business experienced 65 hours of downtime due to a technical failure or data loss, your potential loss would be substantial - over £200,000. This doesn’t include the risk of prolonged recovery attempts, which could lead to even higher costs.

The Case for Faster Recovery

Now, let’s consider what happens when backup frequency is improved, and recovery times are reduced:

• Time Between Backups: 5 minutes

• Average Recovery Processing Time: 6 minutes

• Estimated Recovery Time & Loss: 6 minutes (~£310)

• Response Time: 30 minutes (~£1,550)

• Estimated Downtime & Loss: 36 minutes (~£1,860)

With a backup system that runs every 5 minutes and recovery processing times reduced to just 6 minutes, the impact of downtime would be drastically reduced. Instead of losing days’ worth of work, your business would face a minimal downtime of just 36 minutes, with a potential loss of only around £1,860 - a significant difference in both time and financial terms.

The Importance of Regular Backups and Quick Recovery

This example shows how critical it is to have a solid data backup and recovery solution in place. IT systems are a central part of your operations, and when they go down, the consequences can be severe. A reliable backup strategy with frequent backups and fast recovery times can help mitigate these risks and save your business both time and money.

Why Having the Right IT Support Matters

If your business is relying on outdated backup systems or long recovery times, you’re putting both productivity and profitability at risk. An IT support provider can and should offer:

• Regular data backups (cloud and local) to ensure minimal data loss.

• Fast recovery solutions to get your systems back online quickly.

• Continuous monitoring to prevent problems before they become disasters.

• Ransomware detection and disaster recovery plans to protect against cyber threats.

It’s easy to focus on IT only when something goes wrong, but the real value lies in proactive planning. Ensuring your business can continue operating smoothly, even during unexpected disruptions, requires the right strategy and support.

Don’t Wait for Downtime to Strike

You can’t afford to wait until it’s too late. The good news is that IT solutions don’t have to be complex or expensive. Whether it’s about improving your backup strategy or speeding up recovery times, there are solutions available to ensure your business remains protected and operational.

If you’re ready to assess the potential risks of downtime and see how your business can benefit from enhanced IT recovery processes, we’re here to help. Visit Penn Tech today to learn more about our IT support solutions designed specifically for small to medium-sized businesses. We’ll help you safeguard your data, streamline recovery, and keep your business moving forward.

Please contact me if you are ready to secure your business:

Nick Abbott

nick.abbott@penntech.co.uk

Disclaimer: The estimates in this article are based on common industry practices and assumptions. Actual recovery time and financial loss will vary depending on your business’s specific setup and recovery strategy. Regularly testing your backup and recovery system is key to minimising risk.