The Devastation of Downtime: By the Numbers

August 2020

These days, having an online presence is essential, no matter what industry your business operates in. Many companies rely heavily on their websites for generating new leads and even bringing in profits through ad revenue and eCommerce sales. It’s not surprising, then, that unexpected site outages can create problems for business owners and customers alike.

Beyond frustration and inconvenience, website downtime can also impact your company’s bottom line. By having a better understanding of the real cost of downtime, you can take measures to better protect your business.

The Average Cost of Downtime

The cost of network downtime can vary greatly based on a number of factors. For example, a business that runs an eCommerce store is likely to lose more direct money due to site downtime than a company with relatively light daily traffic that only uses its website for informational purposes. On the other hand, even businesses without eCommerce sites can stand to lose out on a significant amount of profits if on-site ads are used to generate revenue.

Studies have shown that network downtime can easily cost a business an average of $5,600 per minute, which equates to more than $300,000 per hour. Of course, the size of your organization and the nature of your industry can also have an impact on this figure.

Potentially Overlooked Costs of Downtime

In addition to assessing the typical costs associated with network downtime, there are some other things to consider that could impact your business. One of the biggest issues is that of a tarnished reputation.

Think about the last time you tried to visit a website with a server that was down. How did that make you feel about the company? More than likely, you were disappointed and sought another, more reliable option. Many site visitors who run into unexpected server downtime may also fear that the site is a security risk and may stop frequenting the site altogether.

Take a look at a recent example where a major financial institution’s stock price dropped a full 2.3 percent due to a two-day server outage. Is this something your business can afford? Most likely not.

What Would Downtime Cost You?

Ultimately, the cost of unplanned server downtime will depend on a lot of factors – but the bottom line is that downtime is never good for your business (even when it’s planned). Therefore, it’s crucial to invest in a reliable hosting service that can help you avoid outages at all costs. Additionally, if you have downtime planned for any reason, it’s important to let your users know well in advance, so they’re not caught off guard.

At ReliableSite, we understand just how much downtime can cost. That’s why we offer dedicated server hosting with service-level uptime guarantees. This feature, combined with our many dedicated server security options, ensures that your site remains accessible at all times.

Contact us today to find out more about our hosting solutions, as well as other tips for avoiding unplanned server downtime.