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The true cost of Cloud Computing downtime

The true cost of Cloud Computing downtime

With a number of businesses migrating to the Cloud each day, service providers are being placed under more and more pressure to provide a highly available and secure service. Even just a few minutes of downtime on a platform can cost a business a staggering amount.

Over the last five years, worldwide, there has been an estimated downtime of 568 hours – resulting in a predicted loss of $71.7 million. To a regular business its true cost of downtime is not accounted for as there are several other areas to consider, some of which are impossible to place value upon. This blog contains some questions to help you fully assess the true cost of cloud computing downtime for your business.

Business productivity

How much money does your business earn each day? This will help you to work out how much money your company will be losing per minute of downtime and evaluate what contracted availability is required.

What tasks can your employees perform while the platform is unavailable? If employees cannot complete any tasks without access to the platform, then your business is at a standstill.

End customer productivity

Do your customers rely on your platform working? For example, if you are a Software developer, would customers be able to access their software?

The service level agreement (SLA) also doesn’t account for any missed sales opportunities that may occur while the server is down, if the business cannot respond to calls.


Through your service level agreement you may be entitled to claim compensation, however this may not outweigh the true damage caused. Does your business also provide compensation to its customers? If so, would the debt that you owe your customers cost more than the compensation paid by the supplier?

Reputation and competition

If your platform is not reliable, then your customers will not see your business as reliable. This runs the risk of your existing customers moving to another provider – even a slow website can put customers off using a particular brand. It also gives your competition ammunition to use against your organisation.

Through research and references it is vital that you select a provider that meets your business requirements. By working together you can then create a ‘fool proof’ plan to ensure that your business is productive and protected.