How to Calculate Downtime
Hi, I’m Bruce Naylor, your Frugal Tech. I want to remind you that on June 30th, we’re going to be having a drawing to win an Apple iPod Nano. It’s a 4 gigabyte model, brand new. It’s really, really very nice. In order to win, there are two things. Number one, you need to be a subscriber to our YouTube channel and secondly, you need to be present in our live chat room and that’s at FrugalBrothers.com. You get to the homepage, there’s a link that says Frugal Tech Live, either June 30th between 1 o’clock and 3 o’clock Eastern Standard Time for the drawing. It’s going to be a lot of fun. You look for that, I’ll be there.
Now I wanted to share with you in this video a free tool. It’s a calculator to calculate the cost of their own time. Now I come across this from the IT Business Edge and I was like cool stuff like this because you know when you’re trying to explain to someone the value of investing in maybe upgrading equipment or is ask to recovery and you’re trying to explain this to business people. They don’t always see the value in that, right? If you’re an IT professional and you’re talking about project that can help that company’s uptime and keep things working reliable. Sometimes these folks just don’t quite get, they just see dollar signs and that they don’t want hear anymore.
Okay, so this is just another tool on your tool chest and if you own a company. It also might be an eye opener for you as well. There is another tool in the old tool chest, a key to get you thinking that I think in some pretty important ways so in the description’s video, I will have the link to where you can download this from.
So the description of this is was that the cost of downtime tool is a quick reference that helps you present the cost of downtime for certain technology components of a company by presenting downtime in financial terms is much easier for the owner of a company to understand the justification for certain recommendations especially infrastructure improvement.
So, it’s basically a five step process where you identify failure points. You quantify the number of employees. You estimate how much their hourly rate is. You determine a productivity percentage impact so your 10% of your time, 50%, 100% when the component fails and then your cost per hour shows up so that’s very, very cool.
So they gave a couple of some of the examples. It’s basically an Excel spreadsheet, okay. And I’ve looked at it and someone numbers I used a probably kind of realistic for a small company but not so much for maybe mid-size company.
They gave an example, for example if a financial application server fail, a hundred users, they make $50.00 an hour were now 50% less productive. Your downtime on us is $25,000.00 an hour. Now that’s something that when executive or business owner or small, mid sized company is going to get right away. You’re going to get that.
And another example is an e-mail server serving up 300 employees, average cost per hour; $40.00 an hour. They lose 10% of their productivity. You’re talking around 1200 an hour for that mail server being down so you get the idea on this thing. It’s incredible and so it’s a good tool they have. I highly recommend you go get it. Check it out, play around with it. It’s absolutely free. So it teaches you how to calculate that cost of downtime.
I’m Bruce Naylor, your Frugal Tech. I hope you enjoy these videos. Always love to hear your comments and your feedback. If you want to get a hold of me directly, just email support@frugalbrothers.com. Remember if it’s within your shot, not making any money or saving you money, get it out of there. I’ll talk to you later.
Transcription by:
Scribe4you Transcription Services