What’s downtime costing you?

Finding an average cost of downtime can be difficult due to the variety of factors and the type of business affected, but here are estimates from two different research organizations.

The Ponemon Institute estimated a per-incident cost for unplanned downtime.1

Cost of downtime per incident*
Financial Services $773,286
Healthcare $689,912
Retail $672,517
Education $592,152
Public Sector $531,086

*Note that sample sizes for each industry were small.

Ponemon pegged the average (mean) cost of downtime across industries at $690,204 per incident, with the average incident lasting 86 minutes. This represents an average hourly cost of $476,000.

The Aberdeen Group estimated an hourly cost for unplanned downtime, by size of company.2

Cost of unplanned downtime per hour
Large companies $686,250
Medium companies $215,638

While planned downtime doesn’t technically cost the company money, it does represent an opportunity cost. For example, if a crucial CICS application is offline for 7 hours while batch runs, it could prevent the business from making that functionality available to mobile devices or expanding to other time zones. It could also prevent users from accessing CICS and VSAM data for update when needed.

So what’s downtime costing you?

1 Ponemon Institute (2013, December). 2013 Cost of Data Center Outages. The Ponemon Institute. Retrieved from http://www.ponemon.org/local/upload/file/2013%20Cost%20of%20Data%20Center%20Outages%20FINAL%2012.pdf
2 Aberdeen Group ((2013, August). Downtime and data loss: How much can you afford? The Aberdeen Group. Retrieved from http://www.aberdeen.com/research/8623/ai-downtime-disaster-recovery/content.aspx