Downtime, Outages and Failures - Understanding Their True Costs

Telco outages happen literally hundreds of times each month in Australia.


At one stage or another, your business will be unlucky enough to find itself in the midst of an unplanned outage.

 How did this outage happen, what caused it? Good questions, however, while you are thinking those questions, the real question is: How is it affecting your bottom line, and when will it be fixed?
Do you KNOW your service level agreements (SLA) for your services?

In reality, the outage is caused by some unknown factor and completely outside your control, so how does that affect the SLA clause in your contract?

 In fact, there are many causes of telco outages ranging from faulty equipment in data centers, telecom exchanges or simply environmental issues such as floods or cable cuts.

 Cost of Downtime: Calculating it Yourself

 How much do you lose from unexpected downtime of your telco services?
The simplest way to calculate potential revenue losses during an outage is with the equation:
LOST REVENUE
=
(GR/TH) x I x H
GR
=
gross yearly revenue
TH
=
total yearly business hours
I
=
percentage impact
H
=
number of hours of outage


Service costs are rarely zero.

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