Virtacore’s disaster recovery down-time calculator allows you to quantify the cost of downtime vs. the cost of a DRaaS solution. Keep in mind that this downtime revenue loss formula captures only a fraction of the actual total cost of an outage. It doesn’t incorporate outside factors like loss of goodwill, employee morale and employee productivity. This very simple starting point will aid you in justifying to the business the importance and need for DRaaS.
Hourly downtime formula:
Total Company Revenue (TCR) divided by Annual Operational Business Hours (AOBH) = Potential Revenue Loss per Hour of Downtime (RLHD).
Putting this formula into motion we use an example of a $10 million annual revenue business that is operational 2,400 hours per year.
Your formula for hourly loss while your critical apps are down would be:
$10,000,000 / 2,400 = $4,166 per hour of downtime
Now you have a solid data point that can tie directly into what your application Recovery Point and Recovery Time objectives need to be. It is also worth noting that some business insurance will cover a portion of the financial cost of outages or disasters and related business interruption.