New Downtime Cost Calculator by What if ?

Downtime Cost Calculator

The Annualized Loss Expectancy (ALE) is the product of the annual rate of occurrence (ARO) and the single loss expectancy. It is mathematically expressed as:

Annualized Loss Expectancy (ALE) = Annual Rate of Occurrence (ARO) X Single Loss Expectancy (SLE) (wikipedia)

Yes, we all know that famous formula which is used in every Risk Management project. But how accurate is the estimation of the Single Loss Expectancy (SLE)?

If we speak about downtime, the impact on business processes varies for each company and for each process. One thing is for sure though: if you provide IT services, better deliver an uptime around 99.x% or have a very flexible and loose SLA with your customers.

You know that uptime is many times a decisive factor in customer retention and in acquiring new business. But what is your actual loss caused by downtime ? I bet you asked this question many times and maybe you even started to draw some complicated math equations.

That's one way to do it, if you have time and energy to spend. Another way to do a proper Downtime Cost Simulation is to use the brainpower of computers like I did.

I just discovered the Downtime Cost Calculator developed by and I must say it does exactly what it's name says.

You can test it in the widget below (go on, press the PANIC button)

Please upgrade your Flash Player This is the content that would be shown if the user does not have Flash Player 6.0.65 or higher installed.

By using a complex math formula it allows you to see instantly how your dollars are flying out the window in case of a downtime.

The lost sales revenue is coupled with the lost productivity so you can instantly get a glimpse of the total accumulated cost as well as predicted hourly loss.

It's like a stopwatch for the bleeding money so it should raise an alarm about the potential impact of a downtime. Fixing the IT systems and processes is a different story and there are no automated tools to do that in the real world. It takes time and effort or you can outsource this task to Storagepipe, the creators of the Downtime Cost Calculator.

Storagepipe is a company focused on corporate data protection solutions including online backup and recovery, electronic archiving and business continuity. They can assist you trough the whole Risk Assessment process in order to identify and classify data which really matters for your company.

Offiste backup and recovery services will provide you the peace of mind about corporate data because, as we know the risk can be mitigated, accepted or transferred . Transferring seems a good option in this case.


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