Published March 9, 2017
for PagerDuty
According to a roundup by Gartner, the average cost of downtime for an enterprise is $5,600 per minute. While the data collected was from incredibly large companies, the cost of downtime for even small startups is no laughing matter. Let’s assume, for the sake of simplicity, that your core product is a web app that relies solely on organic sales, totaling $1 million in revenue a year. This amounts to about $2 in lost revenue per minute. This doesn’t sound like too much in the grand scheme of things, but revenue is only a small part of your downtime costs. We also must consider wasted operating costs. Employees’ time and productivity, too, are wasted during downtime. If, for example, you pay $500,000 a year in employee costs, that’s an additional $1 in lost revenue per minute. If you’re keeping track, we’re now at $3 in cost per minute. That’s $180...
Read more »