The Real Costs of Downtime: Why Keeping Your Tech Updated is Crucial
Downtime is a serious threat to any company, whether it's a single computer crashing and needing repairs while the employee waits or a network server goes down and leaves everyone waiting. It’s not just frustrating to deal with—it’s a major productivity killer that could be costing your company a lot of money. Using old technology multiplies that risk. Let’s explore this topic a little further!
What Causes Downtime?
Downtime isn’t just bad luck. It often results from outdated tech, including old computers, servers, and network equipment. Toss in outdated software, inconsistent backups, and poor security practices, and you’ve got a recipe for disaster. The scary part? Downtime in the workplace is on the rise. In 2022, 76% of companies experienced it due mostly to crashes, human error, and cyberattacks—a 25% increase from 2021.
Old vs. New Tech
Here’s a fun fact: older computers experience twice as much downtime as newer ones. Those system crashes that cause so many problems are primarily the result of issues with old IT. Old IT assets also generate twice as many help desk calls, each lasting 20 minutes longer on average, increasing the workload for your tech staff and reducing employee productivity. And let’s not forget about data loss—older systems are three times more likely to lose data compared to their newer counterparts, costing more time and money.
The Real Cost of Downtime
You might think that downtime is a minor inconvenience in your company, but the true costs can be eye-opening. When your tech team is busy fixing issues, that’s only about 5% of the total cost. The other 95%? That’s lost employee productivity (78%) and lost revenue (17%). Imagine everyone twiddling their thumbs or reaching for their personal devices while waiting for the technology issues to be resolved. That’s precious time when they could have been working instead.
Let’s Talk Dollars
According to a survey by Information Technology Intelligence Consulting (ITIC), the cost of IT downtime is about $5,000 per minute on average when a single company server goes down. The best-case scenario? About 98% of large enterprises with more than 1,000 employees said that in these cases, each hour costs over $100,000 or $1,667 per minute. In the more extreme cases, it can even cost millions per minute when it happens during peak times.
And that’s not all. These estimates don’t even account for potential legal fees, fines, or penalties companies might face. It also overlooks the damage to your brand’s reputation. Clients, both current and potential future clients, might lose faith in your reliability and take their business elsewhere.
The Bottom Line
Keeping your technology updated isn’t just about having the latest gadgets. It’s about maintaining workplace efficiency, employee productivity, and a solid brand reputation. Knowing when to invest in newer tech means fewer interruptions, happier employees, and ultimately, a healthier bottom line.
So, next time you’re considering pushing off that tech upgrade, think about the real costs of downtime and how that old tech puts you at higher risk. Not putting it off might just save you a ton of headaches—and money—in the long run.
Find Out How We Can Help
If you are an enterprise, institution, or government looking for ITAD solutions or would like additional information, contact us at ICT. You can also look at our white paper on Balancing Tech Spending and Employee Productivity for more in-depth information on this important topic.
Selected References
DiDio, L. (2020). Forty Percent of Enterprises Say Hourly Downtime Costs Top $1Million – Information Technology Intelligence Consulting. https://itic-corp.com/forty-percent-of-enterprises-say-hourly-downtime-costs-top-1million/
Martini, D. (2023). Wasted Talent: Time Lost to (Old) Tech Issues. Electric. https://www.electric.ai/blog/wasted-talent-time-lost-to-tech-issues
Microsoft News. (2018). True cost of not replacing computers revealed in Microsoft study: more than $4,000 each – New Zealand News Centre. From https://news.microsoft.com/en-nz/2018/10/16/true-cost-of-not-replacing-computers-revealed-in-microsoft-study-more-than-4000-each/#_ftnref1
Omega Computer Services. (2019). 5 Myths About Outdated Tech in the Workplace & What it’s Costing You. https://www.ocs.help/blog/5-myths-about-outdated-tech-in-the-workplace-and-what-its-costing-you
Prodigy Teks. (2020). Old Technology May Be Causing Low Productivity for Your Law Firm. https://www.prodigyteks.com/old-technology-low-productivity/
Unisys (2023). From Surviving to Thriving in Hybrid Work Comprehensive data and insights Hybrid work IT support Security Technology Employee experience Motivation and engagement. From https://www.unisys.com/siteassets/microsites/hfs-insights/hfs-comprehensive-data-and-insights-report.pdf
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